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Where’s Paradise? California Community to Rebuild or Relocate After Deadly Camp Fire

Jan 9, 2019 by

Just two months ago, nearly 27,000 residents of Paradise in Butte County, Calif., fled the all-consuming flames of the Camp Fire, which broke out on November 8, killing at least 86 people in the region and destroying nearly 14,000 homes—an estimated $ 11-$ 13 billion in residential and commercial losses, according to CoreLogic data.

A substantial number of buildings and structures in the town of Paradise are gone; the spirit of the community, however, lives on with surviving residents and members of the surrounding towns. While concerns and uncertainty linger, nearby real estate markets have already experienced vast fluctuations.

Where Did Paradise Residents Go?

With the fires extinguished, residents of what was once the town of Paradise, now largely a mix of ash and rubble, are having to make significant long-term decisions: stay and rebuild in Paradise, or relocate.

According to Becky Prater, broker/owner of Becky Prater Real Estate in Chico, and Dennis Geare, branch manager for HomeSmart ICARE Realty in Grass Valley, the markets surrounding Paradise are seeing substantial changes in buyer, seller and renter activity, home values and inventory.

First and foremost, those left homeless by the fire had to find short-term housing before making more permanent decisions. While many are still living in shelters or staying with friends and family, the rental markets of the neighboring towns have seen big changes.

“There are basically no rental units left in Butte County; most survivors are living between 45-100 miles away from Paradise,” says Prater, emphasizing that any available vacant rental was gone within 72 hours of the fire. “This is also causing increased traffic, traffic accidents and heighted stress levels of all of our residents.”

A Ripple Effect

An unexpected result of the sudden need for short-term rentals? Chico and surrounding towns are experiencing a spike in seller activity and, therefore, in renter evictions.

“Chico renters are being evicted because their landlords are selling their homes to take advantage of the current market increases. These renters also have nowhere locally to live and are not qualified to get any FEMA disaster funds like those coming from the affected areas,” says Prater.

Geare has also seen a growing interest in relocation, not only from local residents looking to sell and move to other areas that may be deemed “safer,” but from incoming Paradise residents who are looking to purchase elsewhere rather than rebuild.

Prater believes virtually most individuals impacted by the Camp Fire are looking to relocate permanently, as the thought of rebuilding in the fire-prone areas is “scary and not something they can imagine.”

“We are seeing quite a few clients coming up from Paradise who are looking for roofs over their heads, generally in the lower price range of about $ 280,000-$ 350,000,” says Geare. “This is putting timing pressure on buyers in that category. Good houses are snapped up quickly, sometimes in as little as 3-6 days.”

The Markets Shift

There’s been a noticeable change from the pre-fire housing market to today’s demanding real estate environment. Immediately following the fire, Prater saw a sharp decline in inventory.

“We had a relatively tight market pre-fire, with 226 homes on the market in Chico on November 7. In the two weeks after the fire, our inventory shrunk to 41 homes on the market, and the few builders we have in Chico with subdivisions sold out of all available inventory and phases of lots not even finalized yet,” she says.

Now that the urgency has waned, inventory is starting to grow once again, also being spurred on by homeowners who are afraid of being caught in similar circumstances by living in fire-prone areas, or by those who understand there is still a growing need for housing in the area, which could lead to quick and profitable sales.

“As of [press time], we have 107 homes on the market, and even during the holidays homes were coming on the market. Those thinking of selling in the spring or anyone with a vacant home were getting their homes on the market,” says Prater. “This demand has caused an almost immediate increase in value of between 10-20 percent. Most homes in good locations and conditions are selling within days and at prices considerably over the seller’s asking price.”

As homeowner insurance checks are disbursed, more and more Paradise residents are becoming cash buyers in nearby towns, or are using the funds as significant down payments, as well as to purchase essentials such as clothing and home furnishings, says Prater.

While Geare is not located in the immediate vicinity of Paradise—instead about an hour away from the town—he has also felt market changes.

“We have a remarkably stable market here in Western Nevada County. Months of inventory based on closed sales has increased from 2.5 months a year ago to 5.5 months as of November; price-per-square foot is up slightly from $ 218 to $ 234; and days on market is stable at about 53 days,” says Geare.

Real Estate Community and Locals Come Together

Geare and Prater have both witnessed an outpouring of assistance in the aftermath of the destructive fire. From REALTOR® and Association participation to community involvement, the surrounding towns have come together in support of those affected.

“I’m so proud of our local, state and national Associations of REALTORS®. All have stepped up in donations, grants and personal help,” says Prater. “Our local Association, the Sierra North Valley Association, has donated thousands of dollars in cash, gift cards, clothing, furnishings, and more. Our state Association made $ 2,500 in grants available to local REALTORS® and others.”

Geare’s office also accepted donations for new items of clothing, gift cards and various other essential items that were delivered to Chico to be distributed to those in need.

“Other broker offices collected donations, as well,” says Geare. “Our five Rotary clubs made donations and ran crowdfunding campaigns—fundraising was everywhere. One local jewelry store ran a watch battery campaign, donating the proceeds to assistance efforts. The community outpouring is just too extensive to recapitulate.”

An Unescapable Truth

The fires may be out, but this devastating event will have long-lasting effects on not only those directly affected, but on residents of nearby towns who are helping to rebuild a fragmented community.

“This horrific event has forever changed the way that our local communities will live,” says Prater. “Our immediate goal is finding housing for as many possible. The long-term goals are rebuilding a community with better housing protections for fire safety and a community that will be able to sustain itself.

“The financial and emotional impact on all of us is still hard to quantify even today, almost two months after that date that will forever be etched in our minds for those who escaped with their lives and for those of who lived in black smoke for days and witnessed the fire,” adds Prater.

Liz Dominguez is RISMedia’s associate content editor. Email her your real estate news ideas at ldominguez@rismedia.com.

The post Where’s Paradise? California Community to Rebuild or Relocate After Deadly Camp Fire appeared first on RISMedia.

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Tornado Victims’ Rebuild Leaves Them Feeling Abandoned

Mar 4, 2014 by

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Nearly a year after their home was destroyed in the massive tornado that struck Moore, Okla., last spring, a family says that they’ve now fallen victim to a contractor who’s left their house stuck in the early stages of rebuilding, with no end to the project in sight. And they suspect that they’re not the only ones left in limbo by the builder.

oklahome tornado home left unbuilt
KOMO/AOL On

As seen in the above video, Lesly Flood and her mother, Becky, tell Oklahoma TV station KOCO that they’re in the process of hiring a lawyer as work on the house has come to a standstill, after being promised that the job would be done by Thanksgiving. “He hasn’t paid electricity, he hasn’t paid plumbing, he hasn’t paid anybody,” Lesly Flood says. That might explain the graffiti (pictured at right) apparently left by construction workers at the building site.

Adding to the family’s concerns, they say, is the discovery of a lien against their house, and that there might be at least two other families in the same fix. (See more on their story — including the contractor’s response — in the video above.)

While at this point, the blame for the Flood family’s predicament isn’t clear, it’s often the case that those hit hardest by natural disaster are victimized even further by those offering to help. Following Hurricane Sandy in 2012, East Coast residents were warned by officials to be on the alert for scams. They were particularly told to avoid contractors offering on-the-spot estimates, and requiring cash only or upfront payments, whom the Better Business Bureau calls “storm chasers.” But a year after the hurricane the New York City Department of Consumer Affairs reportedly had received hundreds of complaints of unscrupulous contractors, many involving those who took down payments in the thousands of dollars and then failed to do the work.

The key for homeowners is to do research. Angie Hicks, founder of Angie’s List, told AOL Real Estate in 2012 that a survey of Angie’s List members then found that a third of homeowners admitted that they don’t verify contractors’ license status before hiring them. One of the risks of not checking: Unlicensed contractors can disappear with consumers funds without fear of being fined or having a license revoked by regulators.

When possible, consumers should look for referrals from those they know and trust. And along with looking at reviews online at resources like Angie’s List and the Franklin Report, it’s also important tp check a contractor’s rating at the Better Business Bureau and local office of Consumer Affairs. And of course to check references.

Among other recommendations from the BBB:

o. Get at least three bids in writing and compare the bids based on the same warranty, specifications, labor and time.
o. Check to see if the company you plan to hire is properly licensed.
o. Be sure to verify the company’s liability insurance to protect you against any damage. You can also check them out with your state’s department of insurance.
o. Never allow work to begin without a signed, written contract that includes start and completion dates, exact costs, specific work to be done, and warranty information. Read the fine print carefully.
o. Deposit required and payment — Never pay a deposit of more than 25 to 33 percent of the total job cost. Final payment should only be due when the job is completed. Pay by check and credit card, and never by cash.
o. Obtain warranty information in writing on all products and installation and read the fine print carefully.
o. Be sure all workers are employed by the contractor are bonded to protect you against theft and damage.
o. Check out anyone you allow into your home to see if they have a criminal record.

More about home improvement:
Chimney Sweep Scams: How Not to Get Burned
Don’t Move — Improve: How to Rethink Space in Your Home
Home Improvements That Get Your House Sold

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find
homes for sale in your area.
Find
foreclosures in your area.

Find homes to rent in your area.

Follow us on Twitter at @AOLRealEstate or connect with AOL Real Estate on Facebook.

 

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