Agents of Change

Real Estate Brokers Go
Above and Beyond Expectations
By Molly Harrison

It’s a common misconception that all a real estate broker does is set up signs in yards, list properties on the Multiple Listing Service (MLS), show a few houses here and there, then sit back and rake in the big commissions. There’s a lot more to selling houses and properties than most people realize — much more.

Real estate professionals work with clients way beyond just the obvious showing of properties. From assisting people with investment strategies and offering relocation information to helping clients achieve personal goals and appeasing the fears of first-time home buyers, the real estate broker is the middleman, or middlewoman, of big life changes.

Just think of the broad range of subjects that real estate brokers must be knowledgeable about. Not only must they know a property inside and out, including its history and market value, but they must also have a great knowledge of the town, the county, the state and the geographical area where the property is located. They must know about all of the codes and covenants and laws — current or in the works — that might affect the property. They must know about septic and sewer systems, water hookups, home maintenance and repair, cost of services, where to find community information, school information and so much more. All of this knowledge is intangible but extremely valuable. Real estate brokers are required to be diligent researchers. They are constantly looking into building codes, rental histories, property histories, property liens, insurance laws and tax information.

“You have to be constantly learning and researching,” says Darlene Styron-Doshier of Sun Realty on Ocracoke and Hatteras islands. “You can’t lag behind or you’ll get left behind.”

In a vacation market such as the Outer Banks, where the majority of properties are second homes or rentals, real estate brokers are required to have more than just a general knowledge of rental programs and how they work. Buyers want to know about net and gross rental incomes and they want a solid idea of the investment return on a rental property.

Brokers also need to be able to inform clients about land values, flood zones, insurance requirements, erosion rates for waterfront property, how the purchase of a second home affects taxable income and the types of loans available. They need to be able to recommend the right type of lenders and tax accountants. Out-of-area buyers have many questions about local information, such as hurricanes and storms, cost of maintenance and recommended contractors as well.

“On the Outer Banks, most buyers or sellers are from out of town, and their broker is their only local contact,” says Marlene Roberts Brantley, Broker with RE/MAX Ocean Realty. “Consequently, we have to work with them on everything from house inspections to selection of attorneys and lenders. We have to arrange with them to have inspections done, negotiate a repair agreement, get quotes and arrange for repairs, inspect the property along the way, line up elevation certificates, and make sure it’s all done in a timely fashion.”

For relocators, agents must be able to provide community information about everything from schools and sex offenders in a neighborhood to churches and the name of a good dentist.

As a seller’s agent, the job goes well beyond putting up a sign and showing the house. First and foremost, the agent helps set the selling price.

“Pricing a home is not as easy is it may seem,” says Gordon Jones, Owner/Broker of Coldwell Banker Seaside Realty. “You have to factor in location and the home’s features and come up with a price that yields the largest amount for the seller but doesn’t leave the house on the market too long. Agents are constantly studying the market and expanding their knowledge base of properties so they can set a reasonable selling price for properties.”

Once the price is set, the agent must make sure that potential buyers know the house is for sale. Brokers must be expert marketers, and they are constantly thinking of ways to market the property, both out of and in the area. They pay for ads in newspapers and other publications, on the Internet and through direct marketing. Writing those ads to appeal to the right buyers is an art mastered only by those in the know.

The broker must also make sure the house is in good condition for viewing. Therefore, a broker is often called upon as a consultant on “staging the home,” and he or she must have some knowledge of interior decorating and curb appeal. The broker must have a good, objective eye, considerable tact and be able to recommend the least expensive changes that will have the biggest impact on buyers. He or she must be able to recommend contractors for yard work or repair work.

On the buyers’ side, real estate brokers invest a lot of time catering to potential clients, whether it’s via phone, email or in person, even though many of those clients do not end up buying, especially in a vacation market. Most all real estate brokers say that the key is to treat each contact as if they were buying, because everyone is a potential customer.

Often vacationers are very serious about buying a property while they’re here, but when they get back home and crunch numbers their interest wanes. Local real estate brokers have the added difficulty of trying to maintain interest with people who are so far away and can’t come back to look at a property again and again.

First-time home buyers have special needs that require more of the agent’s attention than normal. "There’s a lot of educating and hand-holding with a first-time home buyer,” says Brantley. “To get a first-time home buyer from selection to closing is a demanding situation. Buying a home is one of the most important things people do, and we have to help them through it. It’s important for a first-time home buyer to have proper representation during the process, and serving as Buyers Agent to first-time home buyers is something we enjoy and take very seriously. It may be the most rewarding part of what we do as Realtors.”

Some buyers and sellers think the job of a broker is so easy they can do it themselves, without an agent. This is possible for some people, but most experts recommend having the expertise of a broker to help you through the process. Not only can a trained real estate professional guide you smoothly through the art of making a deal, but he or she also wades through the incredible amounts of paperwork. The broker tracks down all the legal signatures and make sure the details are carried out with lenders, attorneys, inspectors and insurance agents.

On the Outer Banks, brokers also have to deal with the stiff local competition.

“In Hatteras, it’s a lot more intimate area, and you’re obligated to go above and beyond for clients,” says Danny Couch. “It’s required. You’ve got to look for that extra edge.”

Couch gives all of is clients community information along with historical and cultural information that gives them a good background of the area. He even gives all of his clients a local cookbook. “Out-of-area people want to be made to feel local,” says Couch. “They want to do more than own a house here. They want to be a part of the community. I try to help them with that, and they appreciate the little things.”

Finally, another misperception about real estate brokers is that they make too much money.

“The average real estate agent on the Outer Banks works anywhere from 30 to 50 per week and makes an average living for a profession that takes a lot of time and knowledge,” says Jones. “When people go to an attorney or a financial advisor they don’t flinch at the fees. But for some reason when they go to a real estate agent it’s different. A real estate agent’s fees are related to one of their most important assets – their primary or secondary home. People grow investments such as stock and bonds and they build wealth with real estate, and they need the right professionals helping and guiding them when they buy and sell.”

Many people look at the commission fee and think that it will all go to one person. These people don’t realize that most of the time the commission is split as many as four ways.

“Most properties today are co-broked between a buyer’s agent and a seller’s agent,” says Louanne Woody, Broker in Charge at Sandmark Construction and Real Estate. “Whatever fee is earned is split between the buying and selling companies, then typically each company pays the agent a portion of that that fee.”

Then each broker has many expenses that offset their earnings — advertising expenses, webmasters, association dues, travel expenses, cell phone service, to name a few.

“I spend a lot of money up front when I market a property for a seller,” says Woody. “I buy ads, set up websites and spend the time to do the legwork to properly market the property. I need to be available to answer property inquiries at all times. I don’t get a cent until the property sells, and in many real estate markets that can be months down the road.”

Real estate brokers are out there day in and day out, on evenings, weekends, beautiful summer days, even when the surfing is epic, always on call to suit the needs of clients and more than earning every cent they make. Call upon their expertise for your real estate needs.

Getting Your Beach Bearings: A Community Compass

By Lisa Loy

The decision to buy property on the Outer Banks should be made with more information than just the lay of the land. We may succumb to the lure of the Outer Banks’ natural land and seascape and embrace the variety of ways we can enjoy the sport and soul of life outdoors. It’s a fact that some buyers have chosen to live or invest here based on little more than the view.

For year ‘round living, our moderate climate, relatively low taxes, great schools, world-class fishing and a score of superb golf courses can tip the scale toward the decision to buy. For vacation home buyers, a rental cash flow analysis offered up by an experienced Realtor can provide all the justification one might need to partake in “the life.” But what else should you know? Within the broad reach of our 100-plus miles of coastline, there are many villages and towns. Which Outer Banks community is right for you? How do you get your bearings when there are features that you can’t see, such as local attitudes on growth and the environment? These attitudes will ultimately shape the future look of the Outer Banks. Will it be green or glitzy? Here, then, in addition to some physical features of note, is a view of another sort, from north to south -- a snapshot of each community.

The financial strength of Dare County, which encompasses the majority of the Outer Banks, is also a key element in the future shape 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, high property tax collection rates from non-resident property owners and staggering growth in property valuations, now estimated at $16.5 billion, all demonstrate Dare County’s ability to serve Outer Bankers’ needs. It is the 16th fastest growing county in the state.

The majority of the communities covered in this article are located in Dare County, but at either end, due to primary access routes through Dare, the Currituck County beaches and Hyde County’s island of Ocracoke are also considered part of our overall community.

We begin at the northernmost village, beyond the paved roads in Currituck County’s Corolla and above the wildlife sanctuary, in the village of Carova. Accessible by 4-wheel-drive vehicles by way of the beach, this area was subdivided and canals were dug in anticipation of an access roadway from Virginia planned some years ago. But when the Back Bay Wildlife Refuge came into being, those plans were dashed and the subdivisions remained isolated, albeit affordable. Lot sales were a bargain and included owner financing, but building a home that far out of the way back then was a bit of a financing challenge. As a result, the homes there are a hodgepodge of old and new, ramshackle and opulent. Residents no longer push for better access, they are friendly, but they want to enjoy their privacy. They shy away from development, even the mere grading of their main route, Sandfiddler Road, as proposed last January. The effort was dropped due to a petition signed by more than 150 residents who feared that road improvement would spark more development.

Although Carova is geographically just a few miles north of the village of Corolla, it is a world away in appearance and economic development. Corolla is manicured, tourism driven and on a fast track toward self-governance. The future “Corolla, Incorporated” is made up of homes in developments with extensive recreational facilities that attract a steady stream of vacationing families who arrive weekly in Mercedes and Volvos. The year ‘round population is small, but visitors carry big pocket books, and the resulting revenue stream is significant, benefiting the larger agrarian mainland of Currituck County, a catalyst in Corolla’s hopes of township. Most non-resident homeowners take advantage of premium weekly rental income to offset the cost of ownership. For the Currituck beach communities, access to schools is currently a challenge for local families, meaning Corolla is not attracting many new, year ‘round residents with children and won’t until the long anticipated mid-county bridge, connecting the Currituck beach to its mainland, is finally built.

“If a bridge is built, it will be easier for people to live there year ‘round,” Mark Massey, a Broker with BD&A Realty & Construction, Inc. said. The bridge will help lengthen the season for Corolla’s business community because it will be more accessible for day-trippers to the area. He said that a number of people he knows have tried to make a go of living full-time in Corolla but that after a year or so many of them give up and move south to Dare County.

“There are a few large parcels up there that present the possibility that new communities will have some commercial or mixed-use areas,” Massey said. He sees that as a plus for year ‘round growth and, consequently, greater participation in the future look of Corolla. He also noted that sales activity is up right now, not unusual in the spring as buyers enjoy closing in time to receive the upcoming season of rental income. What is encouraging to him is that the overall activity indicates a more level market throughout the year.

In addition to shortening drive time for southbound vacationers to the northern beaches, the proposed mid-county bridge will help ease the travel volume on N.C. Highway 12 through the towns of Duck and Southern Shores.

Like Corolla, the town of Duck is a vacation destination with upscale vacation rental homes in attractive developments, but the year ‘round population is growing due in part to its better proximity to the conveniences of major medical facilities, schools, shops and restaurants. Duck is the northernmost community in Dare County and has made great strides since its incorporation five years ago with its own police department and other services. It has acquired property for a town hall, and the first phase of a new park at the same site, is almost complete. This year Duck is providing free concerts there this summer and fall. By and large the people of Duck are actively involved in their town, eager to enhance its beautification.

“My take is that the atmosphere in Duck will be maintained for the future,” Massey said. “The lack of open parcels available and the tight controls the town has in place to preserve vegetation and minimize house sizes will help.”

Overall, the way the Outer Banks compares to other coastal communities along the eastern seaboard is also a factor in Massey’s estimation.

“It’s hard to find a place near the water with this kind of natural environment and small town feel,” Massey said. Some people from the north who have retired to Florida have chosen to move halfway back home. “My friends call them ‘half-backers,” he said, attributing the reasons half-backers make North Carolina their second choice is that they miss the changing seasons not present in Florida. They miss that rhythm and find the moderate seasonal changes here quite comfortable. Accessibility to friends and family is also a factor; a day’s drive to the Outer Banks is much easier on their children and grandchildren from Ohio than a two-day trip or the cost of airfare.
Farther south, the Town of Southern Shores is a magnet for the mature buyer. It is a full-fledged year‘round residential community that enjoys the shelter of extensive maritime forest, profuse with wild flowering dogwood each spring. The attentive community benefits by a large retirement population who volunteer for many services to such a degree that they also enjoy the lowest tax rate in the county.

Unlike its neighbors to the north with a wide variety of subdivisions, Southern Shores was carefully planned from the start. There are no recreational facilities that rely on hefty homeowner’s association dues. Instead, nominal dues paid to the civic association support community spaces that provide access to ocean and sound with parking and a few playgrounds. The country club, Duck Woods, offers membership for those wishing to play golf and tennis. Like Duck, the residents of Southern Shores don’t want a four-lane traffic corridor through their town and support plans for the mid-county bridge.

Kitty Hawk was never planned, it was settled. It has one of the greater concentrations of old families on the Outer Banks who live primarily on the rolling, wooded ridges that rise above intermittent marsh. Names like Perry, Twiford, Tillett and Baum that appear on many street signs give tribute to these true locals. They avoided government for as long as they could, preferring a live-and-let-live lifestyle, but by 1981 development had intensified to the degree that Kitty Hawk chose incorporation to gain control of its future appearance; its first order of business, a zoning ordinance. The Town has garnered kudos for its efforts to preserve more than 1,800 acres of its woods with the support of the Carolina Estuarine Reserve Foundation.

Mary Davenport, a broker with RE/MAX Ocean Realty and recent Outer Banks Realtor of the Year, believes good development planning is also present. Kitty Hawk Landing is a case in point.

“The people who developed Kitty Hawk Landing had the foresight to buy land at the beach,” she said, citing that homeowners in this tucked-away, soundfront neighborhood are able to enjoy parking and convenient access to the beach.

The largest of the towns with a population of 6,613, Kill Devil Hills is considered “Outer Banks Central” with numerous county facilities including the First Flight Schools complex, the Baum Senior Center, County library and satellite offices, and the site of Wright Brothers National Memorial. With a progressive attitude on growth and redevelopment, it is the first beach community to install streetlights along U.S. Highway 158 and to require all new commercial developers to install sidewalks along that corridor. The new Streets Division, charged with managing storm water run-off, will be housed in a new public works complex, and the Ocean Rescue Division will be located in the new Ocean Boulevard Regional Bathhouse. The Town is completing plans to begin the construction of a second firehouse on U.S. 158 at 8th Street. In 2004 the Town created the Historic Landmark Commission to identify homes and other structures of historic significance. At present the Town is working on an affordable housing effort in an attempt to help new teachers make their homes here and is leading the charge to prevent the construction of new overhead power line towers along U.S. 158.

Like Kitty Hawk and Kill Devil Hills, the Town of Nags Head has a healthy mix of year ‘round residents and vacation homeowners. The Town attracts a high number of anglers due to its proximity to Pirate’s Cove Marina and Oregon Inlet Fishing Center. The only beach nursing home, Britthaven, and the Outer Banks Hospital are both in Nags Head, and the new Nags Head Elementary School opened in January of 2006.

Officials in the Town of Nags Head, encouraged by the many communities that are successfully maintaining their beaches up and down the Atlantic seaboard, are leading the way locally to implement beach nourishment practices. But in April, residents voted down a five-year special tax assessment to fund the program. The Commissioners still believe the majority of residents want nourishment, they just don’t agree on how to pay for it.

The Town took a big step forward, however, in its financial contribution toward the Visitors’ Bureau purchase of 9.6 acres that will be developed into a convention center, with a twist. The “green” facility as envisioned would utilize sustainable energy practices such as capturing rainwater, wind power and solar energy. The Outer Banks Visitors’ Bureau hopes to bolster year ‘round businesses by bringing more visitors in the off-season.

The historic Town of Manteo on Roanoke Island, just west by bridge from Nags Head, is the cultural arts center of the Outer Banks. With several blocks of galleries, restaurants and shops, it is the most walkable and charming of the towns, and it is in the midst of a growth spurt with new, history-friendly developments under way that complement the surrounding neighborhoods that have been tended with care by some of the county’s oldest families. This careful redevelopment is the result of a 20-year plan that was developed by the Town and NC State University that literally sent students door to door to survey the visions of its citizenry. The county seat is in Manteo, and while a new Justice Center has opened, plans to preserve and restore the old historic Courthouse are in progress. New elementary and middle schools have been constructed and the former middle school is being renovated and absorbed by the Dare County Campus of the College of the Albemarle. The only commercial airport, The Dare County Regional Airport, Roanoke Island Festival Park, and the Outer Banks History Center are all located here, as are Fort Raleigh National Historic Site, the birthplace of the New World on Roanoke Island.

Mary Davenport believes that it is also the caring nature and involvement of the people who live on Roanoke Island full-time that make life here a special experience, now and in the future. She cited her neighbors at Heritage Point on Roanoke Island.

“It was asleep for a long time, but eventually, as we got some houses and it turned over from the developer, the community really got together. Now, after a storm we get together to trim trees. We share generators. For new residents we even have a welcome committee.”

Davenport went on to say that she believes that the many people who have moved to the Outer Banks are eager to support the community. “Look at Relay for Life,” she said. “For comparable areas in size and population, we were Number 2 in collections in the nation!”

South of Nags Head, over the aging Herbert C. Bonner Bridge at Oregon Inlet, the 60-mile-long Island of Hatteras elbows some 23 miles out to sea. The Cape Hatteras National Seashore, the Pea Island Wildlife Refuge and Buxton Woods Preserve encompass much of the island, crowned by the granddaddy of all U.S. lighthouses, the Hatteras Light. The seven villages on the island attract sportsmen from around the globe, and as a result bolster the economy during the shoulder seasons. This sport-specific visitation accounts for some of the highest numbers of weeks rented for homeowners engaged in the vacation rental home market. Although many beautiful resort homes have been built in recent years, the island is still an affordable mainstay for anglers, surfers, windsurfers and kite boarders. The northernmost three villages of Rodanthe, Waves and Salvo are contiguous with a small year ‘round population and large vacation rental sector. Avon, Buxton, Frisco and Hatteras villages to the south have more permanent residents, and many of the locals can trace their roots back hundreds of years. Hatteras Island is also gaining a new school this year, and the Graveyard of the Atlantic Museum is finally becoming a reality. The Gulf Stream-bound charter fishing boats operating out of Hatteras enjoy a robust existence because they can reach the blue water in less time than marinas to the north.

Scott Leggat, Vice President of Marketing and Administration at Outer Beaches Realty Inc., said the two main issues facing residents today are the possibility that beach driving will be restricted or prohibited altogether and the imperative need for a new bridge across Oregon Inlet.

“Both of these issues, people are passionate about,” Leggat said.

When asked what he thought Hatteras Island would look like in 20 years, he said, “In some ways, maybe it’s wishful thinking, but I don’t think it will change as much as it has in the past 20 years.”

Leggat’s rationale is that within 20 years, the villages on the island will reach build-out, or critical mass, as he puts it. With no possibility for sprawl into National Park lands, redevelopment of older neighborhoods will likely occur.

In Hatteras, there is also a free ferry service to Ocracoke Island. Development on this island has been hindered in recent years as the water utility has struggled to expand and keep pace with the growing need for service. Like Hatteras, a large portion of the island is part of the National Park. The village, like Manteo, has a waterfront setting as it wraps around a harbor called Silver Lake. It is a charming village with quaint shops, restaurants and enchanting small cottages. This island also attracts visitors in great number, including a significant number of northern Outer Bankers who find Ocracoke to be a perfect weekend getaway.

Eventually, the entire Outer Banks will experience the scenario of build-out that Leggat describes for Hatteras Island. With most communities here already mature and huge expanses of natural land set aside in perpetuity, with much infrastructure already in place and financially solvent municipal and county governments, and especially with a population of residents ready to drive their visions into active planning and meet the challenges as they come into play, Leggat’s wishful thinking might just ring true. If you’re just now considering a purchase of Outer Banks property, it’s possible that the place you buy today will still resemble itself two decades down the road. And that, when all is said and done, is what draws most people here to begin with.

Perspectives from Hatteras and Ocracoke

Buyers’ Market vs. Sellers’ Market:
What’s the Difference and Who Benefits?

By Molly Harrison

“There’s an awful lot on the market now. Use that to your benefit to get the best house for your needs. There are some excellent homes out there and some very good deals.”

It’s no secret that the Outer Banks real estate market has changed dramatically over the last year. A little more than a year ago, sellers were in control. They could name their prices and get them — fast. Today, however, the tables are turned, and it’s the buyers who have the power to name the prices that they are willing to pay. This is why everywhere you go on the Outer Banks — everywhere from real estate offices to Internet blogs to bars to dinner parties — everyone is referring to the current Outer Banks real estate scene as a “Buyers’ Market.”

So just what is a Buyers’ Market, as opposed to a Sellers’ Market? What are the pros and cons of these markets, and, based on this knowledge, how should you react if you’re planning to buy or sell property on the Outer Banks?

Simply put, during periods known as a Sellers’ Market, homes sell quickly and sellers have a lot of power over the price they set. Therefore, real estate prices rise very rapidly. This is known as a “hot market.” During the last decade, we saw this on the Outer Banks to a great degree: skyrocketing prices, properties selling in just a few hours after they were listed, multiple offers on one property, bids sometimes higher than the asking price, investors making big money, numerous for-sale-by-owner signs. Buyers had to be the ones on their toes, working hard to find a house before it sold, getting pre-approved for financing, being willing to settle without a lot of contingencies in the contract, or taking properties “as is.”

During a Buyers’ Markets, homes and properties sit around for a while before they sell, creating an abundance of supply. Prices start to go down because sellers no longer have as much power over the selling price, and those who need to sell will drop their prices to do it. Buyers in this market are not under pressure; they can take their time to find a good deal and usually name the contingencies they want. The signs of this type of market abound on the Outer Banks today: houses lingering on the market for months, falling real estate prices, fewer homes for sale by owner and sellers offering incentives.

It’s a simple case of supply and demand. RealEstateABC.com puts it like this: “In real estate, the relationship between supply and demand is calculated as ‘available inventory.’ Longer inventory times are associated with Buyers’ Markets. Shorter inventory periods are associated with Sellers’ Markets.”

Outer Beaches Realty’s website is a wealth of information about Hatteras Island’s real estate market. The website says that currently on Hatteras Island, “the inventory of property for sale is about 60 percent higher than it was a year ago, and both the number of sales and the volume of sales are down approximately 50 percent.” It goes on to say that “the Hatteras Island Pending Home Sales Index, a leading indicator of sales 45 to 60 days in the future, has remained essentially flat since last November, suggesting that current market conditions will continue for the next few months.”

Ocracoke Island is somewhat of an exception to the true Buyers’ Market shift.

“Ocracoke is about half and half,” says Darlene Styron-Doshier of Sun Realty on Ocracoke Island. “It’s starting to lean toward the Buyers’ Market but it’s not totally all the way there yet.”

Everyone has an opinion as to why the Outer Banks market has changed. “Rentals are not totally covering the mortgages anymore,” says Guy Newell of Hatteras Realty. “Buyers are cautious. Everybody is in a ‘wait-and-see’ mode.”

Other reasons that have been cited include investor withdrawal from the real estate market, rising interest rates, unsustainable price appreciation, and a soft rental market.

Everyone agrees that the leveling off is completely normal, part of the cyclical nature of real estate economics.

“This is just the normal real estate cycle,” says Leslie Painter, a Realtor with Colony Realty on Hatteras Island. “I think that in the next six months or so, we’ll start to see the market move again.”

The shift from Sellers’ to Buyers’ market is not just a local phenomenon; it’s happening all over the country.

“Buyers often tell me, ‘As soon as I sell my property elsewhere, I want to invest on Hatteras Island,’” says Newell. “But sales in other areas are slowing down as well. So what’s happening in the rest of the nation affects us here.”

Real estate professionals on Hatteras and Ocracoke islands are not worried about the market. Those who are in the business for the long haul recognize the natural market cycle and have a positive outlook. Hatteras Island and Ocracoke markets are mainly second-home markets, and nationally 40 percent of all residential transactions are second homes.

“This is such a unique area, and more people are fi nding out about it,” says Newell. “People are always going to want to be here.”

What should buyers, sellers and investors do in a Buyers’ Market? Here is the advice of some real estate professionals.

Advice for Sellers in a Buyers’ Market

According to the professionals, the number one piece of advice for sellers is to set a reasonable price at the onset of placing the property on the market.

“When a house goes on the market overpriced and then sits around for months, it gets to be old news and then people won’t even look at it,” says Painter. “Agents and buyers have a tendency to overlook a house that’s been on the market for a while because they think it is overpriced.”

Your best bet on setting a reasonable selling price is to consult a real estate professional who is highly experienced in the local real estate market.

Some sellers — those who can afford to wait — are withdrawing from the market for the time being and waiting for the natural cycle of the market to shift again. Those sellers who need to sell at this time will have to find ways to stand out in the flooded market. They may have to invest in home improvements or upgrades or offer additional incentives to buyers, such as help with financing.

Advice for Buyers in a “Buyers’ Market”

Real estate brokers say that, without a doubt, now is a good time to buy on the Outer Banks.

“Now is a great time to get in on that Hatteras lifestyle, defi-nitely better than it was a year ago,” says Newell. “There is a lot more inventory to choose from, so buyers can be more selective and take their time. Interest rates are very good, and prices are dropping.”

First-time homeowners and locals looking for a year-round home should definitely be keeping their eyes open for a good deal. While prices are still a little out-of-reach for most locals, the cost of local real estate is dropping.

Since buyers are not under pressure at this time, Painter suggests that buyers compare similar houses and find the best value for their dollar.

“There’s an awful lot on the market now,” Painter says. “Use that to your benefit to get the best house for your needs. There are some excellent homes out there and some very good deals.”

Newell adds that not only is it a good market but that the time of year also is right for buying, especially if you’re buying a home to put into a rental program.

Advice for Investors

As always, the advice for real estate investors is to invest for the long-term.

“People need to realize the difference between being a real estate investor and a real estate speculator,” says Painter. “An investor looks at the market 5 to 10 years from now. Speculators are looking for a quick turnaround.”

A Buyers’ Market is not a good time for speculating or “flipping,” which is buying a property and expecting to sell it quickly at a high appreciation. This practice was successful a few years ago on the Outer Banks in the height of the “hot market,” but it also got a lot of novice investors in trouble financially when the market became “soft.”

Renting a Vacation Home 101

The vacation rental is by a long-shot the most popular choice for accommodations on the Outer Banks. There are approximately 11,000 vacation rentals, including homes, timeshares and condominiums, in Dare and Currituck counties, compared to only about 3,000 hotel rooms.

If your idea of the perfect getaway accommodation is a setting with all the comforts of home plus the added luxuries that make a vacation special, a vacation rental is for you.

Vacation rentals carry a bit more responsibility — you have to sign a contract, be careful not to damage the home, bring a bit more stuff — but the advantages definitely outweigh those added responsibilities. Just a few of the advantages of renting a house include:

Privacy You won’t have to share your oceanfront balcony or swimming pool with strangers. Plus, there’s much more privacy within your own family because everyone can have their own bedrooms.

Freedom Sit on the porch in your bathrobe. Walk around in your undies. Turn up the TV as loud as you want.

Cooking A full kitchen means that you don’t have to eat every meal out, a real money-saver. Some homes have gourmet kitchens for people who like to cook.

Common Areas As opposed to a hotel room, a house has common areas, such as family rooms, kitchens, porches, dining rooms and game rooms, where family groups can be together in comfort.

Gatherings & Celebrations Vacation rentals are perfect for uniting groups for events such as family reunions, weddings and retreats. Many of the vacation rentals on the Outer Banks were built specifically to handle large groups; they have super-sized common areas, extra-long dining tables, kitchens with two refrigerators and two stoves, and other amenities to comfortably outfit a crowd. Of course, if a week with your in-laws sounds a little unnerving, or if your group is too large for one house, you can always rent several houses side by side. Rental companies are used to this request. (Keep in mind that most all of the rental companies have strict rules prohibiting house parties and groups like fraternities and sororities, high-school graduation celebrants and the like.)

Many of the Outer Banks rental companies now have concierge services or event planners on staff to help work out the details of planning reunions, weddings and retreats. These people can help you find a home specifically suited to a group’s needs. Corporate retreat planners can find a house equipped with fax machines, wireless Internet access and desk space. Family groups can find houses equipped with game rooms, home theaters, play rooms, swimming pools and baby gear.

A popular use for oceanfront rental homes is small weddings. Couples rent a magnificent oceanfront home with an open floor plan, then have their wedding on the beach and their reception in the rental house or around the pool. Rental houses are also used for wedding accommodations, even if the wedding is not on site. It’s easy to find a large house for the whole wedding party or several houses close together. Not all rental companies allow events such as weddings in their homes, and most require an additional security deposit if you are planning a wedding in the house.

Amenities
With 11,000 rental homes on the Outer Banks, it’s a sure bet that everyone can find the perfect house! The homes of the Outer Banks offer an incredible variety of amenities, all of which are well-advertised to attract renters. You can expect the basics — ac/heat, cable TV, stereos, telephones, washer/dryers, all kitchen appliances, standard indoor furniture and outdoor furniture, cooking utensils and equipment, blankets, comforters and pillows, and equipment for normal housekeeping. Most homes offer outdoor showers, beach equipment and grills as well. You might find a few rustic cottages with no air-conditioning, TV or phones, but those are very few and far between.

As more and more rental houses come on the market, owners are adding more and more amenities to attract renters. What used to be considered luxury is now almost standard — hot tubs, private pools, whirlpool tubs, DVD libraries, CD players, fireplaces, wireless Internet service and game rooms. Other amenities you can find include keyless entry and check-in by mail, home theaters, whole-house audio systems, media centers, gourmet kitchens, home gyms or fitness equipment, elevators, outdoor play sets for kids, pet accommodations and more.

Things to Consider When Choosing a Vacation Rental
As you would expect, there is an enormous variety in price, location and amenities of Outer Banks rental cottages. Locations span across the islands, from the ocean to the sound and everywhere in between, and individual ownership means that properties vary widely in décor, design and amenities. Price varies depending on both of these factors. The main factors to consider when looking for a rental house are location, occupancy, amenities and price, in whatever order is most important to you.

1. Choose Your Outer Banks Locale
One of the first things you need to decide is which area you would like to stay in. The areas of the Outer Banks are very different, so do a little research and pick a location where you and your party will be the happiest. The first sections of the Outer Banks Newspaper will give you a complete overview of each area of the Outer Banks from Ocracoke to Corolla.

2. Choose a Location
Now you need to choose a location within your preferred locale. Do you want to stay on the ocean or the sound or in between? For some people, this decision is driven by price. Obviously, waterfront properties command the most expensive rental rates, with those on the oceanfront the highest. Take a look at some of your general options. Keep in mind that these are not the only designations rental companies use, and there may be other designations depending on the location options.

• Oceanfront — Directly on the beach. The benefits are many: convenience for beach-going, incredible views, private walkways.
• Semi-oceanfront — This is the next best thing to oceanfront. Semi-oceanfront denotes that the house is one row or house back from the ocean. Not all areas have more than one house on an oceanfront lot, so this is not available in all areas. These homes often have great views.
• Oceanside — This means that the property is not directly on the oceanfront, but it’s on the east side of N.C. 12 and therefore you don’t have to cross a major road to get to the ocean. You do not have direct access to the ocean and will have to use a public or community access.
• Between the Highways — This designation applies mainly to the properties in Kitty Hawk, Kill Devil Hills and Nags Head. The property is between the Beach Road (N.C. Highway 12) and the Bypass (U.S. Highway 158). Typically it is not a long walk to the beach, but you will have to cross N.C. 12 to get there.
• Westside —These properties are on the west side of the island, west of N.C. 12 or U.S. 158. In the wider areas of the islands, it may not necessarily be close to the sound. If you’re looking for a good deal, something very affordable and usually nice and quiet, Westside is a good option.
• Soundside — On the soundside of the island, but not soundfront. These properties often have great views of the marsh and sunsets.
• Soundfront — Directly on the sound, with great views and usually some sort of access to the sound. The soundside of the island is much more tranquil, so even if you can afford oceanfront you might want to consider soundfront. Kiteboarders, kayakers and windsurfers can enjoy sound access.
• Golf Course — Many vacation rentals are available overlooking one of the Outer Banks’ four golf courses.
• Canalfront — A home on a canal usually offers a boat dock, which is very convenient for vacationers who bring their own boats.

3. Occupancy
Plan well for the number of people you will need to accommodate and the configurations in which they will sleep. The rental company jargon is that a home “sleeps” a certain number. Typically, a house sleeps two people per bedroom, so a four-bedroom home would sleep eight people. But sometimes a home has a pull-out sofa or extra beds in the rooms, so it sleeps more than you think for the number of bedrooms it has. Each house has a maximum occupancy, so pay attention to this before you book. Respecting a home’s occupancy limits is very important, as most Outer Banks homes are on septic systems instead of sewers. The occupancy limits are also set based on the amount of parking that is available.

4. Price Range
As we said before, the price of a rental home varies widely according to season, location, amenities and size. Property management companies’ websites allow you to search for properties according to price, so you can set a budget and then find a property that falls within it. An important note: The base price you see on the house listing is not the final price. The price is always higher because of added taxes, security deposit, trip insurance and processing fees. All vacation rentals are subject to the North Carolina sales tax (7 percent) and the county occupancy tax (at this writing Dare County was 5 percent; Currituck County, 6 percent; Hyde County, 3 percent; but this is subject to change). So expect to pay from 10 to 12 percent in taxes. At least one company that we know of now includes all the fees, taxes and deposits in the base price of the house. This is a new trend, so read the rental literature of the company you’re working with closely.

5. When to Come
The price of rental accommodations varies greatly according to the seasons. All of the different rental companies have their own systems of dates, terminology and rates for the rental seasons, but in general they all revolve around the prime or peak, shoulder and off-season schedule. The most popular seasons for vacations are the most expensive times to rent. The prime season, i.e., most expensive season, is summer, from mid-June through August. Early June and late August are sometimes a little less expensive. The shoulder seasons of September and October and April and May are less expensive than the summer. In the off-season, or winter, typically November through March, prices drop even more. Seasonal prices for each house are clearly listed on websites and in rental brochures.

6. The Rental Week
Do you want to rent from Saturday to Saturday or from a Sunday to a Sunday? If this matters to you, be sure to talk to a rental agent. Some companies now offer Friday to Friday rentals, which means that you come and go outside of the busiest rental changeover days on Saturday and Sunday. Friday to Friday rentals are also nice for those planning a weekend wedding.

7. Length of Stay
In the prime season (June, July and August) most companies have a one-week minimum rental. But some companies offer last-minute, partial-week rentals for any properties that are not already booked. They usually won’t make reservations for these until two weeks before, or the week of, the rental. In the off-season, partial-week rentals are more readily available. You’ll also hear the term “mini-vacations,” which allow you to rent a home for three or four days instead of a full week. Not all properties are available for partial weeks. If you’re looking at the last minute in the off-season you can typically find a place. Policy varies on how the rate for a partial week is determined.


Book It!
There are about 50 property management companies/rental agencies offering vacation rentals on the Outer Banks, and that’s not including the cottages offered by cottage courts, motels and private individuals. With so much competition, you can bet the companies work hard to earn your business. You don’t have to work with any company whose service is less than exceptional. All of the companies offer websites and color rental brochures detailing their properties. Do-it-yourselfers can search properties online, using a variety of criteria, and even book the property online. If you prefer speaking to a person, all of the companies have booking agents who can help you find just the right property.

Once you have booked your property, you will be required to pay a deposit, usually half of the booking fee, plus a security deposit, administrative fee (if applicable) and trip insurance if you choose to buy it. Once you have paid your deposit, the company will send you a lease agreement to sign and return. The balance of the fee is due within 30 days of your visit.

What to Bring
You’ll need to bring your own groceries, including condiments and spices, along with toiletries, paper products, cleaning products, linens and towels (unless you choose to rent these) and your personal items. Some homes have cribs and high chairs, computers, bicycles, volleyball courts and other offerings, and those amenities are usually listed in brochure or website.

If the house doesn’t have all the items you need, you don’t necessarily have to bring everything from home. Many of the rental agencies now rent linens and towels. Plus there are several equipment rental companies on the Outer Banks that offer linens, baby equipment, bicycles and strollers, all sorts of beach gear, sports equipment, stereos, grills and just about anything else you could want.