Housing News

OCHN Property

Search Guide

Learn advanced property

search techniques

HOUSING NEWS

! ! OCHN!Property!Search!Guide!

[email protected]! ! 949.769.1599! ! !

Methods(of(Property(Search(................................................................................................................................................(3!Browsing(or(Searching(..........................................................................................................................................................(3!Filtering)Unsuitable)Properties)..........................................................................................................................................................)4!Full)Page)Search)Versus)Quick)Search).............................................................................................................................................)4!Map)Search)Versus)Other)Search)Methods)...................................................................................................................................)5!Community)Research)..............................................................................................................................................................................)5!Registered(User(Account(Management(...........................................................................................................................(6!Profile)............................................................................................................................................................................................................)6!Favorite)Listings).......................................................................................................................................................................................)6!Saved)searches)...........................................................................................................................................................................................)7!MLS(Property(Search(Filters(...............................................................................................................................................(7!Search)Box)...................................................................................................................................................................................................)7!Asking)Price)................................................................................................................................................................................................)7!Beds)and)Baths)..........................................................................................................................................................................................)8!Rating).............................................................................................................................................................................................................)8!Valuation)......................................................................................................................................................................................................)8!Income,)Down)Payment,)and)Financing).........................................................................................................................................)9!Cost)of)Ownership).................................................................................................................................................................................)10!More)Filters)..............................................................................................................................................................................................)10!Property)Types).......................................................................................................................................................................................)10!Square)Feet)...............................................................................................................................................................................................)11!Lot)Size).......................................................................................................................................................................................................)11!Parking)and)Garage)...............................................................................................................................................................................)12!Year)Built)...................................................................................................................................................................................................)12!Keyword(s))..............................................................................................................................................................................................)12!Listing)Facts).............................................................................................................................................................................................)12!Investor)Filters).......................................................................................................................................................................................)12!Net)Income)...............................................................................................................................................................................................)13!Cap)Rate).....................................................................................................................................................................................................)13!Cash)Flow)..................................................................................................................................................................................................)13!Cash)Return)..............................................................................................................................................................................................)13!Flip)Margin)...............................................................................................................................................................................................)13!Multi]city)selection)...............................................................................................................................................................................)14!Zip)Code)or)MLS)Number(s)).............................................................................................................................................................)14!Radius)Search)..........................................................................................................................................................................................)15!Polygon)Search).......................................................................................................................................................................................)15!!


[email protected]! 949.769.1599! Page!3!of!16!

Methods(of(Property(Search(

The!OC!Housing!News!provides!six!methods!for!finding!properties:!

Browse!special!categories!of!new!listings!

Browse!by!city!and!price!range!

Quick!Search!on!top!of!website!

Full!property!search!page!

Custom!map!search!

NonNMLS!foreclosure!search!

Browsing(or(Searching(

Browsing!for!property!is!quick!and!easy,!allowing!house!hunters!to!view!many!properties!in!one!area!or!of!similar!

character,!benefitting!those!who!are!first!exploring!the!area!and!uncertain!about!what!they!want.!Browsers!find!

three!hot!lists!of!properties!at!the!top!of!the!sidebar:!dream!homes,!family!homes,!and!investment!best!buys,!

providing!oneNclick!access!to!detailed!property!profiles.!These!hot!lists!contain!newly!listed!properties!possessing!

superior!financial!qualities!and!high!ratings.!Below!these!hot!lists!are!links!to!community!pages!where!house!

hunters!can!browse!through!lists!of!all!MLS!listings!in!each!city!in!Southern!California!and!narrow!the!results!to!

certain!price!ranges.!Browsing!by!city!quickly!reveals!the!type!and!quality!of!housing!available!at!different!price!

levels,!and!it!offers!opportunity!to!explore!other!city!characteristics.!

Searching!for!properties!allows!house!hunters!to!set!precise!property!filters!to!eliminate!unsuitable!properties!

from!search!results,!saving!review!time!for!experienced!searchers.!The!quick!search!with!its!various!parameters!is!

at!the!top!of!the!website,!and!the!other!property!searches!are!available!from!the!property!search!menu.!Property!

search!works!best!with!site!registration!because!registered!users!can!save!searches!for!later!update.!Property!

search!takes!additional!time!to!set!up,!but!house!hunters!save!time!later!because!they!dont!need!to!review!as!

many!unsuitable!properties!as!they!would!if!they!were!browsing.!!



FILTERING(UNSUITABLE(PROPERTIES(

Property!filters!rely!on!measurable!or!quantifiable!property!characteristics!such!as!size!of!the!house!or!number!of!

bedrooms.!House!hunters!can!specify!minimum!or!maximum!acceptable!values,!or!both!if!the!searcher!wants!to!

create!a!narrow!range!of!values;!only!properties!that!meet!the!criteria!will!be!displayed!as!search!results.!For!

example,!a!house!hunter!may!want!to!see!properties!between!1,500!and!2,000!square!feet!(a!range),!with!at!least!

3!bedrooms!(a!minimum!value),!with!asking!prices!below!$500,000!(a!maximum!value).!All!search!filters!are!off!by!

default,!and!the!dropNdown!box!generally!displays!whether!the!filter!accepts!a!minimum!or!maximum!value.!If!

both!a!minimum!and!maximum!is!provided,!searchers!can!specify!a!range!of!values!between!the!two.!

FULL(PAGE(SEARCH(VERSUS(QUICK(SEARCH(

The!top!of!the!website!has!a!

quick!search!box!with!most!of!

the!search!functions!found!on!

the!fullNpage!search.!Further,!

the!quick!search!updates!the!

number!of!search!results!as!

each!filter!is!added;!however,!

only!the!fullNpage!search!allows!

house!hunters!to!select!

multiple!areas!at!the!same!

time,!a!significant!advantage.!

Some!users!also!prefer!the!

stepNbyNstep!approach!to!

setting!filters!provide!with!the!fullNpage!search.!



MAP(SEARCH(VERSUS(OTHER(SEARCH(METHODS(

Map!search!is!preferred!by!visual!thinkers!and!those!who!like!to!plot!their!search!areas!precisely.!The!primary!

advantage!of!map!search!is!the!ability!to!define!custom!search!areas!using!circles!and!multiNsided!polygons.!The!

polygon!search!features!allows!house!hunters!to!very!precisely!map!out!a!search!area!to!include!only!those!homes!

in!the!area!they!want!to!live!in.

!

COMMUNITY(RESEARCH(

House!hunters!often!start!their!search!by!browsing!properties!in!certain!cities!to!get!an!overview!of!the!quality!of!

housing!available.!As!people!browse!they!begin!to!wonder!why!houses!cost!what!they!do.!What!makes!one!city!

more!desirable!and!more!expensive!than!another?!Looking!at!houses!doesn't!reveal!information!on!demographics,!



schools,!weather,!or!crime,!yet!house!hunters!want!this!information!to!learn!more!about!the!communities!they!are!

considering!moving!to.!To!meet!this!need,!the!OC!Housing!News!community!pages!each!have!a!series!of!links!to!

another!site!with!this!important!data.!

The!top!link!leads!to!an!overview!of!the!

community!with!summaries!of!34!

different!types!of!data.!The!five!images!

provide!links!to!the!most!common!data!

summaries!for!demographics,!schools,!weather,!crime,!and!registered!sex!offenders.!

Registered(User(Account(Management(

Registered!users!gain!many!special!benefits!including!access!to!the!exclusive!OC!Housing!News!guides!and!monthly!

housing!market!reports.!In!addition!registered!users!can!establish!a!profile,!save!favorite!listings,!and!save!searches!

to!run!again!at!a!future!date.!

PROFILE(

The!user!profile!contains!the!standard!information!provided!at!sign!up,!plus!house!hunters!can!put!in!their!home!

address,!which!is!useful!for!finding!directions!to!properties.!The!property!details!page!has!a!tab!labeled!

Directions.!If!users!put!in!their!current!home!address,!the!system!will!show!the!best!travel!route!from!their!

current!home!address!to!the!selected!property.!

FAVORITE(LISTINGS(

Users!can!save!favorite!listings!to!review!again!later!or!email!to!others.!If!a!house!hunter!finds!a!good!property!

during!a!search,!saving!it!as!a!favorite!makes!sure!the!property!can!be!found!again.!



SAVED(SEARCHES(

The!ability!to!save!and!recall!searches!is!one!of!the!most!powerful!features!of!the!site,!and!its!one!of!the!main!

reasons!users!who!are!serious!about!finding!a!home!should!register!with!the!site.!It!takes!time!for!house!hunters!

to!set!up!a!good!search!with!many!filters!to!deliver!a!list!of!the!most!suitable!properties.!Saving!this!search!allows!

users!to!repeat!the!search!again!later!without!needing!to!reprogram!all!the!filters.!

MLS(Property(Search(Filters(

Following!is!a!detailed!discussion!of!every!search!filter!available.!Many!of!these!filters!are!proprietary!based!on!

calculations!only!found!on!the!OC!Housing!News!site.!

SEARCH(BOX(

The!search!box!appears!at!the!top!of!the!website.!Its!the!main!feature!of!the!quick!search!area.!Its!quick!because!

it!allows!users!to!enter!city,!area,!zip!codes,!addresses,!school!districts,!builder!codes,!or!any!other!geographic!tag!

found!in!the!MLS.!House!hunters!see!suggestions!as!they!type,!and!after!just!a!few!letters,!they!can!often!find!

exactly!what!area!they!are!looking!for.!The!total!number!of!listings!in!the!system!is!displayed!by!default,!but!as!

filters!are!added,!this!number!will!change!to!reflect!the!number!of!results!a!house!hunter!will!see!when!they!

pressed!the!show!me!button.!

ASKING(PRICE(

The!asking!price!filter!is!the!most!common!filter!on!property!search!sites.!It!provides!a!min!and!a!max!function!to!

allow!house!hunters!to!specify!a!range.!This!feature!is!most!useful!to!moveNup!buyers!that!know!how!much!equity!

they!can!bring!from!the!sale!of!their!existing!home!to!combine!with!a!loan!based!on!their!income.!For!firstNtime!

homebuyers!and!those!with!limited!savings!or!equity,!the!new!income!and!down!payment!filters!explained!below!

provide!better!tools!for!filtering!properties.!



BEDS(AND(BATHS(

Beds!and!baths!are!two!common!filters,!with!bedroom!count!being!the!most!common.!Many!sites!provide!these!as!

a!min!and!max!function,!but!most!house!hunters!arent!concerned!about!having!too!many!bedrooms!or!

bathrooms,!they!are!concerned!about!not!having!enough.!The!OC!Housing!News!doesnt!provide!a!maximum!filter!

as!other!filters!tend!to!weed!out!properties!with!high!bedroom!and!bath!counts.!

RATING(

The!OC!Housing!News!provides!a!powerful,!proprietary!rating!system!that!considers!valuation,!rent!growth,!and!

home!price!appreciation.!Highly!rated!properties!tend!to!be!those!with!good!priceNtoNrent!ratios!in!neighborhoods!

showing!strong!rent!and!price!growth.!For!more!information!on!the!rating!system,!download!our!guide!on!

understanding!and!interpreting!OCHN!monthly!housing!market!reports.!

VALUATION(

Valuation!is!the!most!important!component!of!rating,!but!it!stands!alone!as!a!property!filter.!The!basis!of!valuation!

is!the!current!relationship!between!the!cost!of!ownership!and!the!cost!of!rent.!The!current!asking!price!may!be!

above!or!below!rental!parity.!The!system!measures!how!far!above!or!below!the!property!is!priced!and!compares!

that!to!the!historic!valuation!of!properties!in!the!area.!Based!on!the!asking!price,!if!the!cost!of!ownership!relative!

to!rent!is!below!the!historic!norm!for!the!area,!the!property!is!considered!undervalued.!!

The!valuation!filter!allows!house!hunters!to!seek!out!only!those!properties!that!are!properly!valued!relative!to!

historic!norms.!The!filter!starts!at!20%!overvalued!and!ends!at!80%!undervalued.!The!filter!will!only!display!

properties!more!undervalued!than!the!filter!setting.!For!example,!if!a!house!hunter!sets!this!value!at!N20%,!the!

results!will!only!show!properties!20%!or!more!undervalued.!This!is!confusing!to!some!people!because!its!a!

maximum!filter!but!its!filtering!for!negative!values.!



INCOME,(DOWN(PAYMENT,(AND(FINANCING(

House!hunters!can!filter!properties!based!on!their!income!and!down!payment!savings.!This!is!a!major!

advancement!in!real!estate!search,!an!OC!Housing!News!exclusive.!These!filters!are!designed!to!help!firstNtime!

homebuyers!and!those!taking!their!first!step!up!the!housing!ladder.!For!those!two!groups,!income!and!available!

down!payment!are!the!primary!restrictions!limiting!how!expensive!of!a!home!they!can!obtain.!!

House!hunters!that!use!these!filters!do!not!need!the!asking!price!filter.!One!of!the!biggest!problems!with!using!an!

asking!price!filter!is!that!people!dont!really!know!how!much!they!can!afford.!Also,!even!if!they!have!an!idea!of!

how!much!they!can!finance,!sometimes!a!property!in!their!price!range!is!not!affordable!because!it!has!high!HOA!

dues!or!other!costs!of!ownership!that!would!reduce!how!much!a!lender!would!loan!them!to!purchase!the!

property.!The!OC!Housing!News!filters!for!income,!down!payment!and!financing!type!were!designed!to!replace!the!

asking!price!filter!and!more!accurately!show!house!hunters!what!they!can!really!afford.!

To!set!up!this!filter,!the!house!hunter!must!specify!whether!they!plan!to!use!conventional!or!FHA!financing.!

Typically,!firstNtime!homebuyers!use!FHA!financing,!and!first!moveNup!buyers!use!conventional.!The!default!is!

conventional,!but!those!who!do!not!have!large!down!payment!saved!up!may!not!be!able!to!use!this!kind!of!

financing!as!it!requires!a!20%!down!payment.!In!Coastal!California!even!starter!homes!can!begin!at!$500,000,!

requiring!a!$100,000!down!payment.!Thats!a!lot!of!money!for!the!typical!renter!to!save!to!qualify!for!conventional!

financing.!As!a!result!most!firstNtime!homebuyers!opt!to!use!FHA!financing!that!only!requires!3.5%!down.!

Unfortunately,!this!form!of!financing!is!expensive,!and!it!increases!the!income!requirement!to!qualify!for!the!

mortgage.!

Once!the!type!of!financing!is!specified,!the!house!hunter!can!select!their!income!from!the!income!filter!and!the!

amount!they!have!saved!in!the!down!payment!filter.!The!search!results!will!show!any!property!where!both!the!

income!requirement!is!below!the!borrowers!income!and!the!down!payment!is!lower!than!the!amount!of!available!

savings.!!



House!hunters!like!to!fantasize!about!what!they!want,!but!these!filters!show!them!the!reality!of!what!they!can!

afford.!

COST(OF(OWNERSHIP(

Another!filter!that!relies!on!the!type!of!financing!is!the!cost!of!ownership!filter.!One!of!the!major!advancements!of!

the!OC!Housing!News!search!is!the!ability!to!find!properties!with!a!cost!of!ownership!homebuyers!feel!comfortable!

with.!Some!homebuyers!dont!want!to!maximize!their!debt,!and!they!want!to!limit!their!monthly!cost!to!a!certain!

maximum!or!range,!often!comparable!with!the!rent!they!are!currently!paying.!This!filter!is!designed!for!just!this!

purpose.!

The!filter!allows!both!a!minimum!and!a!maximum,!but!most!often!only!the!maximum!is!required!because!other!

filters!tend!to!weed!out!minimum!threshold!properties.!Based!on!the!type!of!financing,!because!conventional!and!

FHA!financing!differ!considerably,!the!filter!shows!only!those!properties!meeting!the!specified!criteria.!

It!is!important!to!note!that!the!cost!of!ownership!is!not!the!monthly!outNofNpocket!cost!of!owning!the!property.!

Lenders!evaluate!monthly!cash!outlays!when!determining!how!much!they!will!loan!(monthly!cash!outlays!equals!

lender!PITI).!The!monthly!cash!outlays!are!adjusted!for!a!number!of!items!to!determine!the!actual!cost!of!

ownership:!tax!savings,!principal!amortization,!opportunity!cost,!and!maintenance!and!reserve!expenses.!!

MORE(FILTERS(

The!quick!search!box!has!a!link!for!more!filters.!House!hunters!can!press!this!link!to!drop!down!an!extended!list!of!

filters!outlined!below.!

PROPERTY(TYPES(

The!property!type!filters!have!two!dropNdown!menus!plus!a!number!of!selectable!options.!The!first!dropNdown!

menu!allows!users!to!select!which!database!of!properties!to!search!for,!resales!or!rentals.!The!second!dropNdown!



allows!users!to!select!between!a!number!of!different!property!types!specified!in!the!MLS.!Unfortunately,!agents!

are!poor!at!properly!classifying!these!properties,!and!these!search!filters!often!produce!erroneous!results.!!

The!selectable!options!include!active,!pending,!closed,!back!up!offer,!and!leased.!Active!is!selected!by!default,!

whether!the!check!box!shows!it!or!not.!If!another!box!is!selected,!active!will!not!be!displayed!unless!it!is!selected!

also.!These!selections!act!cumulatively.!If!a!listing!appears!in!any!of!the!selected!categories,!it!will!be!displayed.!

Another!group!of!selectable!options!appears!below:!REO,!short!sale,!fixer!upper,!recent!listing,!and!recent!price!

reduction.!These!selections!respond!differently!than!the!group!above.!For!a!property!to!be!displayed,!it!must!meet!

all!selected!criteria.!For!example,!selecting!REO!and!fixer!upper!will!only!display!REOs!that!require!extensive!

renovation;!it!will!not!display!all!REOs!and!all!fixer!uppers.!

Like!the!property!type,!agents!often!input!these!options!incorrectly;!so!good!results!are!not!guaranteed.!!

SQUARE(FEET(

Square!feet!is!another!common!but!rarely!used!filter.!House!hunters!have!the!option!of!limiting!the!range!of!

properties!they!see.!This!may!be!useful!for!families!who!want!to!ensure!they!have!enough!space,!or!empty!nesters!

and!investors!who!want!to!ensure!they!dont!have!too!much!space!to!maintain.!

LOT(SIZE(

Lot!size!is!another!filter!that!allows!range!input.!House!hunters!that!want!a!big!lot!find!this!filter!useful;!also!

investors!and!empty!nesters!who!want!less!yard!to!maintain!can!narrow!their!results.!This!option!is!often!entered!

incorrectly!by!agents,!particularly!in!condominium!complexes!where!agents!often!put!in!the!size!of!the!

development!instead!of!the!size!of!the!private!area!of!the!unit.!



PARKING(AND(GARAGE(

Some!smaller!units!and!condominiums!dont!have!garages!or!assigned!parking.!This!feature!is!supposed!to!help!

people!weed!these!out!of!their!results,!but!agents!often!put!erroneous!information!in!this!field.!Its!common!for!

agents!to!put!in!the!total!number!of!parking!spaces!in!a!complex!when!the!unit!itself!has!none.!This!mistake!

invalidates!the!purpose!of!this!filter!and!produces!bad!results.!

YEAR(BUILT(

The!year!built!is!another!common!but!rarely!used!feature.!It!can!be!helpful!for!people!who!are!unwilling!to!

purchase!an!older!property,!or!people!looking!for!a!property!with!architectural!features!from!a!specific!era.!

KEYWORD(S)(

The!keyword!search!field!searches!the!MLS!descriptions!and!other!fields!for!certain!key!words!used!by!agents.!

Sometimes!this!turns!up!good!results,!but!most!often!it!doesnt.!!

LISTING(FACTS(

Sometimes!house!hunters!find!it!advantageous!to!search!for!certain!facts!about!the!listing!itself.!The!parameters!

included!are!days!on!market,!price!reduction!percentage,!and!open!house!information.!

INVESTOR(FILTERS(

The!OC!Housing!News!provides!a!series!of!filters!designed!specifically!to!help!investors!find!good!deals.!The!

algorithms!used!to!find!and!analyze!deals!come!from!work!with!REONtoNrental!companies!that!needed!to!evaluate!

a!large!number!of!properties!quickly.!Now!the!power!of!this!analysis!and!search!tools!are!available!to!small!

investors.!These!tools!work!best!with!other!filters!to!narrow!down!price!ranges!or!location.!



NET(INCOME(

Net!income!is!the!rent!left!over!after!all!expenses!are!paid.!This!filter!establishes!a!minimum!threshold!of!monthly!

cashflow!an!investor!will!accept.!This!filter!is!biased!toward!higher!priced!properties!with!high!rents,!so!it!is!best!

used!with!a!maximum!price!filter.!

CAP(RATE(

The!capitalization!rate!is!the!yearly!net!income!divided!by!the!allNcash!investment.!This!measures!the!return!on!

investment!for!allNcash!investors.!The!capitalization!rate!is!directly!comparable!to!rates!of!return!on!other!

investments.!A!capitalization!rate!greater!than!the!mortgage!interest!rate!creates!potential!for!positive!leverage!

and!larger!returns.!

CASH(FLOW(

Cash!flow!is!the!rent!left!over!after!all!expenses!are!paid!(net!income)!including!any!debt!service.!Financed!

investors!generally!seek!properties!with!positive!cashflow!after!all!expenses!are!paid.!Cash!flow!is!a!direct!measure!

of!the!amount!of!positive!cashflow!a!property!generates!after!mortgage!interest!expense.!

CASH(RETURN(

The!cash!return!is!the!rate!of!return!on!investment!for!a!financed!buyer.!The!cash!return!is!the!cash!flow!divided!by!

the!cash!investment.!The!cash!investment!of!a!financed!buyer!is!the!down!payment!plus!renovation!and!other!upN

front!costs.!It!is!similar!to!the!capitalization!rate!in!that!it!measures!the!return!on!investment.!!

FLIP(MARGIN(

The!flip!margin!is!a!filter!designed!to!find!properties!with!the!greatest!potential!for!value!improvement!with!

renovation.!The!calculation!looks!at!neighborhood!resale!comps!and!determines!a!theoretical!maximum!value!



based!on!the!best!comps,!assuming!renovation!of!the!property!could!achieve!a!value!similar!to!the!best!properties!

in!the!neighborhood.!This!filter!is!not!able!to!identify!serious!and!permanent!property!flaws!(like!backing!on!to!a!

freeway),!so!individual!property!evaluation!is!still!required;!however,!this!filter!produces!a!short!list!for!flippers!to!

evaluate.!

MULTIQCITY(SELECTION(

The!fullNpage!search!has!a!

convenient!stepNbyNstep!

arrangement.!The!second!step!is!

to!choose!the!county,!and!when!

a!house!hunter!makes!this!

choice,!a!list!of!every!city!in!the!

county!appears.!Searchers!can!

select!multiple!cities!at!the!same!

time;!so!if!a!house!hunter!wants!

to!search!for!properties!in!Tustin,!

Irvine,!and!Lake!Forest,!they!can!

do!this!with!a!single!search!rather!than!having!to!search!each!city!individually.!

ZIP(CODE(OR(MLS(NUMBER(

The!fullNpage!search!system!also!allows!house!hunters!to!put!in!specific!zip!codes,!MLS!numbers.!It!will!only!take!

one!zip!code!or!MLS!number!at!a!time.!This!is!useful!for!searchers!who!want!to!narrow!their!geography!to!a!

specific!zip!code,!or!if!they!already!know!the!MLS!number.!!



RADIUS(SEARCH(

The!map!search!is!the!most!customizable!search!method.!The!left!side!of!the!screen!has!the!standard!search!filters!

described!above,!the!bottom!displays!results!in!a!table!format,!and!the!right!side!displays!pictures!and!some!

property!details.!The!radius!search!provides!a!quick!and!easy!method!of!seeing!all!properties!in!a!given!area.!

Simply!click!the!center!of!a!circle,!and!drag!the!boundary!to!the!outer!edge!of!the!search!are!and!click!again.!The!

center!point!and!radius!can!easily!be!edited!if!the!selection!is!slightly!off.

!

POLYGON(SEARCH(

The!most!powerful!search!feature!is!the!polygon!search,!allowing!house!hunters!to!create!complex!geographic!

boundaries!to!include!specific!neighborhoods!they!want!and!exclude!those!neighborhoods!they!would!rather!



avoid.!This!provides!the!maximum!flexibility!and!power!to!define!a!custom!search!area.

!

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