Kip Tabb - Insiders Guide® to North Carolinas Outer Banks

In this section we feature specific information for residents or those planning to relocate here. Topics include real estate and retirement.

Theres a certain feeling that many of us get when we cross a bridge to the Outer Banks. Its excitement mixed with awe, blended with the spirit that something wonderful might happen at any moment. Its also a feeling of coming home. Any visitor to these shores who has that feeling should know one thing: It only gets stronger, and it makes leaving increasingly difficult. When you get that feeling, you know that its time to look at Outer Banks real estate.

Its the desire to belong here, as much as the desire to own here, that puts the ink on all those real estate contracts. Before you take up a pen, however, realize that no matter how much experience you have buying and selling real estate in other areas, you need a deep understanding of the Outer Banks and its unique real estate market in order to make a sound decision. Theres a lot to learn about seasonal versus residential neighborhoods, coastal and wetlands regulations, investing in an income-producing property versus buying a second home, buying an existing home versus buildingyou get the picture. Its not unusual for real estate agents to work with prospective buyers for two or three years before it all comes together. Then again, you may find exactly what you want on your first day out looking.

So if youre serious about buying on the Outer Banks, begin by reading this chapter, and when youre done, consider that youve learned just enough to be dangerous. Do two things: (1) Start interviewing real estate professionals, and (2) begin collecting and reading everything you can get your hands on that will help you decipher the real estate market. An excellent book on the subject is Jeff Scotts book, Living the Dream. Although written more than 20 years ago, Jeffs knowledge of the market and his observations are still relevant and useful. Subscribe to the local newspapers and get to know the areas, the issues, and the prices. Search the Internet and pick up the free real estate magazines. Smart buyers begin performing this due diligence well before theyre ready to make a purchase.

As you learn about the Outer Banks, youll come to understand that the market varies quite a bit by township and by proximity to water. Nowhere is the old adage about location, location, location more important than here on the Outer Banks. The rules of supply and demand apply, period. The closer to the ocean, the greater the demandand nothing is more precious than an oceanfront lot. Bear in mind that all oceanfront lots arent created equal. The shoreline along the entire East Coast is in a constant state of flux. With such a dynamic scenario, some areas of the beach will experience erosion, some will experience accretion, and its all subject to change. Theres always an element of risk in owning property in a coastal environment.

The priciest real estate on the Outer Banks is in Corolla, where the newer oceanfront homes sell for up to $7 million. Still, there are many excellent, established neighborhoods in other areas of the Outer Banks where you can buy a cottage for around $320,000 and still walk to the ocean. This chapter touches upon the flavor of the various sections of the beach; for more information on townships, see the Area Overview chapter.

Whether you decide to buy an existing home or build your own, a good real estate agent can supply you with the information you need to make a smart decision and can save you a great deal of time and, very often, money. You are wise to enlist the services of a knowledgeable agent when you buy real estate on the Outer Banks given the uniqueness of the market economics and the local environment.

Interview a few agents before you decide with whom youd like to work. Ask around for referrals. Its important for you to know that any real estate agent or broker can represent your interests, but be careful to select an agent with expertise in the communities in which youre most interested. areas. Generally youre better off working with an agent whose office is located near your preferred areas. An agent who understands the market in Corolla probably wont be quite as knowledgeable of markets in Hatteras or Manteo.

Real estate agents and brokers are licensed by the State of North Carolina and are subject to its laws and regulations. A Realtor is an agent or broker who also belongs to the Board of Realtors, represented in our area by the Outer Banks Association of Realtors. What sets a Realtor apart from any licensee is the Realtor Code of Ethics, a set of stricter rules of conduct to which members subscribe, and access to the Multiple Listing Service, the most comprehensive database of properties for sale. For a listing of local Realtors, contact the Outer Banks Association of Realtors, PO Box 1070, Kill Devil Hills, NC 27948; (252) 441-4036; outerbanksrealtors.com. This organization represents more than 900 Realtors on the Outer Banks.

When you choose an agent or broker, technically youre entering into an agreement not only with that agent but also with the agents firm. Youll need to decide whether you want exclusive representation from a buyers agent, whether youre content to work with the sellers agent, or whether under certain circumstances youll allow your buyers agent to represent both you and the other party to the transaction, which makes your agent a dual agent. There are specific rules governing these relationships, and all agents and brokers are required to explain these rules at the first substantive contact with a prospective client or customer. You will be asked to sign an agency agreement; make sure you understand your options and your obligations to your agent as well as her or his obligations to you. Most agents collect their fees from the proceeds of the sale, but this is not always the case. Make sure you understand the compensation arrangement before you commit to an agent. According to North Carolina statute, even if an agent does not represent you, the agent must still be fair and honest and disclose to you all material facts that the agent knows or reasonably should know.

A conscientious, hardworking agent or broker will supply you with extensive information on the marketincluding comps (comparable properties currently listed and recently sold), neighborhood amenities and covenants, and financing optionsand will be conversant in the pros and cons of building your own versus buying an existing home. She or he can also help you estimate the costs of ownership and what you might expect to realize in terms of income if you decide, as many owners do, to rent your home to others.

At the end of this chapter are listings of real estate companies and the areas they specialize in. Along with some community listings, weve supplied contact information for the developer, but do be aware that you dont have to work with the developer or the developers agent directly; you should feel free to use your own buyers agent if thats your preference.

If you decide to build, your agent can help you choose a building contractor, or you can ask for a list of members from the Outer Banks Homebuilders Association, 105 West Airstrip Rd., Kill Devil Hills, NC 27948; (252) 449-8232, obhomebuilders.org.

If you decide to build your own home, first be clear about its intended use: Do you want a second home, rental property, or year-round residence? Your answer will determine where you build and the style of home. If youre designing for the rental market, youll have to keep in mind not only your preferences but those of others as well. Talk with your builder and property managers to learn the features that will make your home a popular rental. Youll be wise to listen to their advice.