Smooth Move ––– Relocating to the Outer Banks

by Lisa Loy

The decision to make a life on the Outer Banks is influenced by a series of factors. For the majority of us, the call of the sea, typically after a few vacations here, becomes overpowering. We don't want to leave. We start to wonder what it might be like to own a home here and how much it might cost, and so we generally begin to convert the idea into a possibility by picking up a real estate sales publication such as the one you are holding in your hands. We thought you might also like to gain a sense of our people, our attitudes on growth and education, our physical and financial health and the level of commitment to community. But before we dive in to our many fine qualities, we should begin with our most compelling feature, the number one reason people make "the natural choice" and move to the Outer Banks.

"We live in a wonderful and dynamic environment. Proximity to beautiful ocean beaches and secluded, braided streams coursing their way through vast wetlands are but a few of the diverse environments that can be found in our area," George Wood of Environmental Professionals in Kill Devil Hills said of the Outer Banks. "Large tracts of land thanks to the existence of the Cape Hatteras National Seashore, Jockey's Ridge State Park, the Alligator National Wildlife Refuge, the Pea Island National Refuge, the Nature Conservancy's Nags Head Woods, the North Carolina Estuarine Sanctuaries and other areas are conserved or protected.

"There is always a place to get out and see bald eagles, pilliated woodpeckers, black bear, deer, shore birds and the occasional alligator or red wolf, among the host of other exotic and common animals," he continued. "This is, in part, because so many large tracts have been conserved to accommodate the wide-ranging habitats required by many of these animals. We are also on major migratory pathways for many species from ducks, geese, swan and butterflies. The opportunities change every season if not every day to see new and wonderful inhabitants of our environment.

"We exist in the transition zone between south and north Atlantic ecosystems so our plant life is equally varied. Hatteras Island can host palmetto palm while Currituck Outer Banks can support the rare sea beach amaranth. The transition in our oceans also provides richness. We are located where the Gulf Stream and the Labrador Currents collide fighting for dominance of our water temperatures, resulting in rich food sources for the better known sport species of our oceans, including marlin, sail fish, tuna and rock fish, and our sounds are home to redfish, speckled trout, flounder and many more.

"If you happen to be a geologist, you could revel in the largest active sand dune on the East Coast, in the changing landscape of wind-borne and water-molded sculptures that change hourly. Very clean ocean air makes for a great life but also assists in viewing the incredible vastness of our night skies. Low light pollution and clear cool weather allow for inspection of displays of meteors, stars, planets and space stations.

"Everywhere you look, taste, smell, touch and listen you are treated to the freshness of this area I call home if you are willing to take the time. Enough said," he smiled. "I think I will walk over to the beach and refresh my soul. Come join me."

George Wood's remarks sum up beautifully the great variety of natural features here that draw so many of us to move to this very special place. But he is also well-versed in the science behind the nature with a master’s degree in both biology and marine biology. Before George founded his consulting company, he worked with the North Carolina Division of Coastal Management as the local Coastal Area Management Act officer. CAMA, created in 1974 by the North Carolina General Assembly, affects all 20 coastal counties including ours––Dare County. Development along the ocean and estuarine shores is regulated by CAMA.

Now, while a real estate developer or building contractor might not always fully appreciate the constraints or limitations imposed under CAMA guidelines, people on the Outer Banks are generally thankful that someone knows how to delineate wetlands from buildable ground to preserve animal habitat and determine building setback lines from the waterfront to help ensure a long economic life for our dwellings and businesses.

In the wake of rapid development in this area, especially during the past 25 years, families and individuals who are thinking about moving to Dare County will find that growth here overall has been mindful, and the determination and foresight of so very many people and organizations to preserve not just our natural wonders but also to guide and protect manmade efforts is also apparent. As we have developed and grown as a community, this level of care is evident in almost every aspect of the Outer Banks lifestyle. From education to health and recreation, transportation and cultural arts, you'll find that local and state government is responsive and local residents are actively involved.

Like the braided streams of the marsh, the current in one area, recreation for example, can impact and benefit another, such as education and health. It is this interplay of support that is a hallmark of our tremendous community involvement. The OBX Marathon not only infuses our local economy with off-season visitors, but the proceeds the event generates also benefit the Dare Education Foundation and the Outer Banks Relief Foundation.

"There is so much a person who visits here can't see," Executive Director of the Outer Banks Chamber of Commerce John Bone said. "We have such a giving community -- that's what makes the Outer Banks a better place to live." In addition to the tremendous community involvement to bring about the OBX Marathon, John Bone cited examples such as the annual Outer Banks Hospital gala that last year raised more than $125,000 to benefit the new cancer center and the overwhelming community response to help replace the museum-quality collection of costumes and accessories that The Lost Colony, the much celebrated outdoor theater on Roanoke Island, lost after a fire destroyed most of this priceless collection.

Although summer populations swell beyond 200,000 people, our resident population is just over 30,000. This means we still enjoy a small town atmosphere, and our strong sense of community is apparent during the off-season. It's easy for newcomers to meet locals if they sign up with the YMCA or one of the many programs offered through the Dare County Department of Parks or Recreation. Membership to organizations such as the Dare County Arts Council will result in invitations to a wonderful variety of events and art openings. Of course, the best way to become a part of the community is to roll up your shirtsleeves and become a volunteer at one of the more than 110 non-profit organizations that exist on the Outer Banks. The Dare County Arts Council, the Outer Banks Hotline Crisis Intervention Center, The Wright Brothers National Memorial, Dare County Schools and the Outer Banks Hospital all welcome and appreciate volunteers.

The economy in Dare County is primarily driven by tourism, and historically, even when the real estate industry is slow across the nation, we still enjoy and benefit from our visitors. This is evident in Dare County occupancy receipts that steadily increase each year, from $172,840,144 in the 1999-2000 fiscal year to $288,420,135 in 2005-2006.

Our non-resident population doesn't require year-round services such as schools, yet the money they bring to our area benefits Dare County's efforts to provide a great education to our students. Our county does much to attract fine new teachers, even to the extent of planning affordable housing, and there is a vitality in our schools that is easily sensed just by walking through the halls. For the third straight year, only students in four of the 115 school districts across North Carolina, with SAT participation rates of more than 70 percent, achieved higher average SAT scores in 2006-07 than students in Dare County.

In January of 2006, two new schools, Nags Head Elementary and Manteo Middle, opened on the same day, and in August of the same year, four ribbon-cutting ceremonies were performed to celebrate the major renovations and new construction completed at Kitty Hawk and Manteo Elementary Schools, Manteo High School and the Dare County Alternative School. The new Cape Hatteras Secondary School opened in 2007.

Although private schools are often considered superior than public schools in many cities in America, and there are four very good private schools on the Outer Banks, newcomers with children learn quickly that in Dare County, the public schools deliver a first-rate education. Both First Flight and Manteo high schools were selected to join a group of only 700 schools in the nation as members of the Successful Practices Network, and Hatteras Secondary School was awarded a five-year $300,000 Implementation Grant through the North Carolina New Schools Project, an initiative of the Office of the Governor and the NC Education Cabinet supported by the Gates Foundation.

Like other resort and retirement areas, jobs tend to center around construction, real estate sales and rentals, retail sales, leisure activities and hospitality. There is a high level of entrepreneurship here, and John Bone said that a "Create the Future" group that meets at the Chamber of Commerce is exploring ways to continue attracting people who create their own jobs. He cited existing fiber optic cable as an example of our area's ability to support the intense internet needs of business such as the Outer Banks Hospital, which relies on the internet to do all kinds of diagnostic work. "Real estate companies have really taken advantage of it, just like the hospital."

And in today's world, with more and more employees and employers interacting online, it often matters little where the employee is physically located. Recognizing this, Bone believes that the county is on the right track in matters of technology. "We're well connected."

A better quality of life is more than a topic of conversation here. It's a reality.

Anne Thomas, Director of the Dare County Department of Public Health tells us that the recent Community Health Assessment heralded that Dare County is seen by its citizens to be a good place to raise children and a good place to grow old.

“Dare County has a lower incidence of diabetes, cancer and cardiovascular disease than other counties in North Carolina; we have a low infant mortality rate and appreciate a comprehensive health system for an area of our size. Our county enjoys both a strong social and healthcare network of support, such as the newly proposed alliance with The University of North Carolina at Chapel Hill’s North Carolina Cancer Hospital; we look forward to increased prevention and treatment opportunities.”

Data also shows that from an environmental health perspective, Dare County has been a good steward of water quality. Dare County ranks among the 20 percent of counties in the nation with the cleanest surface waters. Anne Thomas added, “Maybe the most important thing is that Dare County and its leaders recognize good health as a valuable asset to our community and the people who live here.”

The financial strength of Dare County, which encompasses the majority of the Outer Banks, is also a key element in shaping the future of the Outer Banks lifestyle, and it’s looking good. The $1.3 million dollar surplus in the 2006 fiscal year increased the unreserved, undesignated general fund balance to $22.3 million. This fund helps Dare pay for the costs associated with storms or capital improvements, which can also be funded with land transfer tax revenues. Low debt, low unemployment rates and high property tax collection rates from non-resident property owners all demonstrate Dare County’s ability to serve Outer Bankers’ needs.

All of the elements, from the environment to growth, health and education that support a happy and healthy lifestyle, are present on the Outer Banks––all we need is you. Like George Wood says, "Come with me."

Affordable Housing Opportunities Exist

by Lisa Loy

When Steve and Michele Albright moved to the Outer Banks several years ago, the young, educated couple from Michigan, after a one year stint in Bermuda where he was a landscape designer, rented a home here in an older neighborhood called Avalon.

Their goal was to live as economically as possible until they could familiarize themselves with the various communities here and figure out where they wanted to live, then buy a home and raise a family.

Although both of them had good jobs, Steve with the Town of Kill Devil Hills and Michele with the Pasquotank Arts Council, they quickly learned that they’d be lucky to find something they could afford. They had moved here during the height of the buying frenzy––a seller’s market. The first baby came, a beautiful girl, and they were still living in the rented house.

But they didn’t give up. Nor did their Realtor Cheryl White who traveled beyond the Outer Banks to the Currituck mainland and as far as Columbia during their extended search. They continued to monitor available properties in the neighborhoods with year ‘round residents, close to schools (Michele is very focused on education) and water access (Steve is an avid sportsman, and a playground (the little Miss Albright is an avid climber). They waited almost four years before the lull in the market delivered a greater supply of listings, and suddenly, there it was, a tired old beach box in need of a face-lift. It was perfect! And it was on the Outer Banks!

Or rather, it was the location that was perfect; the house however could be fixed.

The site in Colington Harbour is lush with vegetation and located on a quiet street. It has a sound view, is within walking distance to the swimming and racquet club, the play ground and soundside beach, there is a marina for Steve’s boat and First Flight schools are just 5 miles away.

With baby number two on the way, Steve and his “can do” attitude worked on it for several months in the evenings after he left his office for the day, transforming the little house into their home sweet home. They bought new carpet and installed new appliances. They painted. They didn’t quite finish sprucing up before their son arrived, but they were close, and they were smiling.

For the Albrights, timing and tenacity paid off, but more help is now available to buyers in search of affordable housing.

In a groundbreaking move, the Manteo Board of Commissioners responded to the wishes of its people by adopting an Inclusionary Affordable Housing Ordinance. One of the first such provisions in the state, it breaks the trend of high housing costs in a resort area by giving developers incentives to participate such as density bonuses and a waiver of building fees.

Already three new developments––Cedar Bay, The Flats and Salt Meadow Landing, are planned that will dedicate a number of homes and home sites for purchase by eligible Manteo residents based on income and employment. These are not low-income projects, these are diverse new communities sought after by families who just want to live in a great neighborhood.

In the Town of Kill Devil Hills, the Community Development Corporation (CDC) located on Mustian Street near the library, is working to bring affordable housing assistance to the area and a new development in Kill Devil Hills, Nature’s Walk, is already under construction. This new development of 20 homes meets the CDC requirement for affordability with a mix of affordable and market rate homes.

In addition to collaborating on affordable developments here, the CDC is also a HUD Approved Counseling Agency. This means they offer homebuyer education programs and advice on loss mitigation, debt management and prepurchase and postpurchase counseling.

Plans are also underway to develop “teacher housing” on Dare County Board of Education land located near First Flight schools. It’s no secret that affordable housing is a key element in the county’s ability to attract more teachers to the area. According to its executive director, Amy Montgomery, the Dare Education Foundation, which has been raising money for our schools for about five years, is eager to apply for a State Employees’ Credit Union Foundation Grant to fund the project. Talks regarding the 9.5-acre site in Kill Devil Hills include partnering with the CDC for a proposed 55-unit townhouse development with one-bedroom units priced as low as $120,000 and four bedroom units up to $225,000. Some of the units would be available to rent.

This would be a welcome development in a county where the percentage of residents that can afford a median-priced home since the year 2000 dropped from 41 percent, or 6100 year ‘round residents, to only 4 percent, or 547 residents, by the year 2005. Although we can expect a certain reversal of this trend, due to the flood of listed properties by sellers who are now willing to negotiate in this arena of intense competition for sales.

With greater environmental awareness, urban sprawl on a national level is also beginning to experience an about-face. The new preference to live closer to work in smaller homes is considered a proactive way to use less energy and less fuel commuting to work––less being more in terms of the common good. Anthony Flint, a futurist and journalist from the Lincoln Land Institute, cited the need for compact, mixed-use developments recently at a breakfast co-sponsored by the Outer Banks Chamber of Commerce and the CRC.

“Regional land use planning is the way we’ve got to do business and we must approach together the issues of affordable housing, sustainability and economic growth,” he stated.

Flint urged redevelopment through “recycling” land and older buildings and recommended that housing, transportation and the environmental agencies work together to achieve this objective. Certainly the plans for “teacher housing” is a great example of different groups working together for the common good.

But on a personal level, there are other reasons that some Outer Bankers pull up stakes and move to the mainland that have proven to be more than thrifty. Although the general attitude is “people can’t afford to live here anymore,” there are a growing number of beach people attracted to this landlubber’s paradise. The prices are significantly lower of course, but other benefits include privacy with abundant land in wide open places, historic homes in charming towns like Columbia and Belhaven, a world-class equestrian center in Martin County, and abundant hunting, fishing and water sports on the other side of the sound. There’s room to breathe out there for many Outer Bankers who have prospered after working hard for decades; they love their weekend get-aways in the country.

Another twist in the general mindset on affordable housing is, in a word, modular. Modular homes are built in sections in a factory then transported to the home site and assembled. In this industry’s early years, these homes were a no-frills bargain, often with no down payment required, that enabled many first-time homebuyers a chance to realize the American dream.

Manufactured homes have come a long way and today, over 22 million people live in them across America. One of the area’s most well-known and admired contractors, Stan White, owns such a home on Ocracoke Island.

Stan’s award-winning company could build anything he and his family could want, but the builder found that the logistics in getting one of his construction crews down there to raise a stick-built home was cost prohibitive, and he wanted a retreat, not another rental, so economy was a goal. He mostly wanted to go fishing, and soon. He looked into the possibility of a manufactured home for his “fishing camp” and found that the quality of materials used at the factory had improved dramatically and final completion could be accomplished in a matter of weeks.Whether you’re a first-time or budget-minded buyer in need of some guidance, the prospects are improving all the time. Contact a local Realtor or the CDC to help you strategize, locate, and learn about the variety of affordable possibilities. It’s your market, and it’s time to go shopping.

Choosing Your Buying or Selling Season

By Lisa Loy

The change of seasons is evident in nature––we see it with our eyes, we feel it on our skin. But have you ever considered the annual ebb and flow in the real estate market? When is the best time of year to buy, build, rent or sell?

The buzz on the beach all year has been that now is the time to buy, and of course, that’s true. Experienced investors shop like experienced housewives. They buy when the products they want go on sale. Housewives are driven by value. They’ll buy 50 lbs. of shrimp in summer, when they’re in season, abundant and consequently less expensive, then measure them out in freezer bags to enjoy all year.

Why is that so hard to do with real estate, or stocks and bonds for that matter? In these markets, investors flock to buy when prices are rising and sell when prices are dropping. Real estate activity during the past decade was all about price, and it was driving speedily uphill in a bandwagon. It had to overheat at some point. When prices began to crest, sellers climbed aboard the bandwagon causing a glut of available homes and prices to drop.

To a lesser degree, there are fluctuations in the real estate market that occur every year. For example, the slowest month of the year for real estate sales nationwide, traditionally, occurs during the month of December. It’s a whirlwind month––folks are too busy with parties, shopping, and caroling to add to the revelry by scheduling a closing during the holiday season. Slow sales in December may also be influenced by the “close after the first of the year” strategy some tax conscious sellers employ.

In a resort area where vacation rentals come into play, one might think sellers would be more apt to negotiate in the fall when faced with the lower occupancy rate associated with winter. But there’s a yang for every cold, dark yin, and it’s called rental deposits. Vacation homeowners receive income from their property managers monthly. Deposits are being tendered all winter long as bookings for summer occur well in advance.

The fall is not only a great time to look at real estate, it’s a beautiful time of year to experience the Outer Banks. It’s not always easy to go house hunting in summer when vacationing families occupy every house, but in the fall, touring prospective properties is a breeze. The ocean is still warm after absorbing the summer’s heat, and surfers and anglers are enjoying the secret season.

Moreover, the Outer Banks comes alive in the fall. Locals, after working hard all summer, have more time to enjoy themselves. For someone considering a move to the beach, the fall is an opportune time of year to get to know us. After the crowds of summer go back home, the beach reclaims its small town atmosphere. You’ll find plenty of opportunities to meet the locals at events such as the Dare County Arts Council’s Artrageous Art Extravaganza & Auction occurring at Rec. Park in Kill Devil Hills on October 6th. And although the OBX Marathon in November draws thousands of competitors from across the country, it is also a huge community event.

If you’re planning to retire here, drop by the county’s senior centers, the Baum Center in Kill Devil Hills and the Fessenden Center on Hatteras Island. These facilities look and feel like country clubs with an active, social population. There’s a tap dancing group at the Baum Center and a basketball court at the Fessenden. Attending the Senior Games, occurring annually in the spring, would also be a good way to visit and meet the area’s most robust retirees.

For families with school age kids to consider, a visit to any one of Dare County schools is time well spent. Our schools have some of the highest rankings in the state, and a Friday night football game, as in any small town, is a great way to meet the locals.

Meeting people, when you are here to look at available property, who are year ‘round residents will help you learn whether or not the Outer Banks as a community is a good fit for you and your family.

Off-season, there’s time to think, to plan, and remember why you came here. Buy a rental home in the winter and you’ll experience the luxury of time to enjoy and personalize your new home before a busy summer. You won’t be stuck in traffic on Saturdays and there isn’t a waiting line at every restaurant.

If you wish to build a new home, the quiet months in winter are also an ideal time to work out your plans with a builder. In the spring, contractors are often rushing to fulfill their contracts and complete their homes before the summer rental season is in swing. If you are not interested in rental income, you may do well to schedule construction of your new home during the summer and fall. Like most artisans, a builder will have more time to do his best work when he’s not under a tight deadline.

In winter you can walk land more comfortably with not a thought of pesky flies and without fear of surprising a snake. But nature is present. It’s not unusual at all to see deer taking a their daily stroll through a yard or find a little fox peering at you from beneath a wax myrtle. Without the hot haze of summer, the atmosphere can be wonderfully clear, bringing sunsets with color vivid enough to rival the gold and orange leaves of a New England maple. When the swans finally arrive and float en masse on the sound just offshore, the season is complete.

Timing your closing on the purchase of a vacation rental home in spring is akin to the story of the “loaves and the fishes.” The fishing season is in high gear with an abundance of tuna, dolphin and cobia, and the bread, well, that’ll be on your HUD Settlement Statement in the form of a hefty pro-rata rental income credit.

Buying any home in the spring, as would be expected, lessens the likelihood of negotiation. After all, the spring is especially beautiful and is the advent of summer––the epoch of the Outer Banks experience.

For most of us that live here, the investment aspect of homeownership is a factor. After a few seasons go by though, you’ll probably find out what we already know. Price, quality, and growth are all important, or so we believe at first, but none of it outweighs the personal value we reap when we embrace the Outer Banks lifestyle. No, not by a long shot