The Gulf Oil Spill: How is it Affecting Your Local Market? By Tim Knight, Director, Product Management, BPO Division Clear Capital
When we initially heard about the gulf oil spill, our first thoughts were of the people killed and injured in the rig explosion and the people in coastal communities whose lives may be forever changed. We waited to hear news that a solution had been discovered, but as time went on we realized just how big this event really is - not only to those who can smell and see the direct impacts, but also to those across the country who are impacted in a less direct way. Part of the lasting effect could be reduced home prices in already strained markets. We're hoping resilient folks in these areas find a way to make the best of the situation.
Today "How will the Gulf oil spill affect real estate values?" is a question we're hearing more and more from our mutual customers. Like the rest of the country, customers are watching daily footage of the spill and hearing about the closure of fishing waters but they don't have a good idea on how these events are affecting or will affect real estate in the Gulf States.
If you are located in one of the Gulf States we'd love to learn more about what you are seeing and hearing. Is the Gulf oil spill already having an impact on real estate in your area? What will the likely effects be?
Since our customers rely on you to be the "feet on the ground" reporter through your reports, including relevant and as specific as possible data will be immensely helpful. Aside from the various news outlets and Government updates, your local knowledge of what is happening right where you live is critical to giving our customers sufficient confidence to make decisions on assets in these areas.
What kind of information is important to include in your reports? The type of information that would be valuable to include in your reports are details like "our area is heavily dependent on the fishing and tourism industries and reports are that jobs relating to these professions will be cut substantially. That will affect the housing market across our coastal city." Other details to include would be "the subject property fronts the ocean and has suffered environmental damage relating to the oil spill. Oil has already washed ashore on the beach on the subject's property." An area like Mobile Bay, Alabama, the ninth largest deep water port in America, is buffered somewhat by barrier islands but the effects are already being felt. One report that attempted to address the effects of this disaster stated that 37 percent of U.S. federal waters in the Gulf now have fishing restrictions. What's happening where you are? If it would have an impact on the housing values in your area or if it would definitely not affect your area, that type of information would be helpful.
What steps is Clear Capital taking to ensure our mutual customers have information to help them manage their assets in light of this disaster? Clear Capital is addressing the oil spill and its potential impact on the reports done in these areas by working closely with our customers to assure them that we'll help them navigate through this time of uncertainty. Additional measures are already in place to help collect data but a lot of the most valuable information is going to be provided by you.
Actions that will directly affect you include the following:
- We are increasing communication efforts with all the folks performing BPOs in the affected areas through the blog, direct email, and on your reports.
- We've updated Report Instructions for all our reports but you only need to comment if you are in one of the affected areas.
- A Pre-check rule has also been established to look for comments relating to the oil spill specifically looking for the word "oil". You'll see the new Pre-check rule appear, for now, only on one form set, 135-136. The Pre-check rule only triggers if the subject property is in a zip that could be affected by the oil spill.
Please include commentary in the Marketing Strategy section of the report addressing what impact has happened, could happen in the near future, or likely would not happen at all. The Pre-check rule is a soft validation so the report can be submitted but submissions without a comment in the Marketing Strategy section that includes "oil spill" could result in a Clarification Request.
What say you? Please share specifics here in this blog of how the oil spill is already affecting or will be affecting your area
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