A.R. Chesson Construction Company, Inc. is a multi-faceted construction company that specializes in a number of innovative projects for clients of all varieties. With multiple offices throughout eastern North Carolina, (and most notably in Manteo which is convenient for Outer Banks residents), A.R. Chesson Construction can help guide a wide range of projects, from new vacation rental homes to multi-story businesses. A.R. Chesson Construction provides a host of different services for all different kinds of clients, including general contracting, design or building services, traditional bid services, pre-construction consultation, construction management, and pre-engineered metal building. With alliances with a wide range of design firms, sub-contractors, and fellow contractors, clients will have all the resources they need to ensure a project’s success. And with a focus on safety, production costs and schedules, and great results, clients of all sizes will be satisfied with this impressive firm’s work. During A.R. Chesson Construction’s more than 30 years of business, they have also been granted a number of awards for their various projects and adherence to safety, making them an all-the-more desirable option for property owners and clients who require professionalism, and who want to work with one of the most noteworthy contractors in Eastern NC.
Albemarle Contracting Services is a local building and contractor company that’s based in the central town of Nags Head, and which is spearheaded by Jason James. James is an award winning home builder who specializes in the Outer Banks area, and is a custom remodeler of existing properties with more than 25 years of experience in the Eastern North Carolina region. Born and raised in the Eastern NC area, James is acutely aware of the importance of having a well-built home that can withstand hurricanes, nor’easters, high winds, and an occasionally stormy environment, and he takes this knowledge to heart with every new project. James also visits each project site daily to make sure that the work is of the highest caliber, and uses the best quality materials while adhering to the utmost standards. As a result, Albemarle Contracting Services has a long roster of satisfied clients throughout the Outer Banks, with multiple projects that range from remodeled classic Nags Head homes to gorgeous vacation rentals in the Duck area. With years of expertise and a portfolio of stunning results, Albemarle Contracting Services is a fine option for coastal homes that can handle the sometimes tricky coastal Outer Banks environment.
Coldwell Banker-Seaside Realty is a locally established real estate company that’s located in the heart of Kitty Hawk, and which can cater to buyers and sellers throughout the Outer Banks, from the northern outskirts of Corolla to the sunny beaches of South Nags Head and Hatteras Island. Established for more than 25 years, Coldwell Banker-Seaside Realty has a team of more than 40 real estate professionals who know the local trends of the Outer Banks real estate market, and who can offer a world of expertise for buyers and sellers alike. In addition, the office serves as a “one-stop” shop for finding a vacation rental or long-term rental investment, as well as property management services to ensure an investment provides years of benefits. Sellers will also find themselves well represented, thanks to a detailed marketing plan that ensures their property is sold in the shortest amount of time possible. The company’s mission statement centers on “Fulfilling dreams by providing a world class Real Estate experience,” and under this premise, Coldwell Banker-Seaside Realty has been a local leader in the number of homes, lots, and other properties sold on the Outer Banks for several years running. With great service and expertise, buyers and sellers are in sturdy hands at this established real estate company.
Whether an Outer Banks property owner wants to build their dream home along the coast, or remodel an existing home to bring it up to modern standards, Compass Edge Construction can help with veritably any project. Based in the town of Southern Shores, this construction company has been building, designing, and remodeling homes on the Outer Banks since 2005, and as a result, has a hefty number of testimonials and satisfied clients from all across the Carolina coastline. The business is spearheaded by Master Carpenter David Buchanan, who began his career in 1995 in the framing industry in Raleigh, North Carolina. David led a 16-person construction crew for more than 10 years before moving to the town of Southern Shores and launching Compass Edge Construction. Fully licensed and working as a general contractor, Compass Edge specializes in complete services, from the very beginning of a project to the finishing touches of your dream home. With the ability to render finished architectural plans or work with existing drawings, any goal can be met through this multi-faceted and thorough company. Covering all the bases from landscaping and outdoor spaces to gorgeous interiors, clients will find that no stone has been left uncovered when it comes to creating a dream estate with Compass Edge Construction.
Croatan Custom Homes has over 25 years in the home building industry. They are licensed general contractors specializing in both custom and speculative builds. They are a member of the Outer Banks Home Builders Association, and multi-year Parade of Homes contributors. Voted Silver Winner for Best Home Builder in the OBX!
Distinctive Group, Inc. is an all-encompassing company that offers a uniquely wide range of services for property and home owners all along the Outer Banks, and particularly in the northern Outer Banks towns of Corolla, Duck, and the 4WD beaches. Offering nearly 30 years of experience, this company works with both busy property management services as well as individual homeowners to ensure a property is at its best for rental guests, or just families who want an elite and enticing place to call home on the beach. The suite of services are certainly extensive, and include total remodels that can bring a slightly outdated rental property up to modern standards, or simple landscaping, outdoor maintenance, or even deck cleaning to give existing homes an extra layer of elegance. Clients can opt to remodel just a room or two to brighten up a home, like a kitchen or a bathroom remodel, or can just call upon the experts at Distinctive Group, Inc. to help with handyman or even concierge services, to ensure those minor repairs or issues don’t eventually become big problems. From grand projects that make over a home from the inside out, to little touches that will attract potential renters, there’s a world of possibilities waiting with Distinctive Group, Inc.
The reasons to build new on the Outer Banks are endless! The obvious reward is choosing the perfect home design for your family with selections that reflect your lifestyle, but the benefits go well beyond the "lipstick." There is tremendous peace of mind in knowing your personalized home has been built to the most stringent coastal building codes. The company is spearheaded by licensed North Carolina building contractor and real estate broker Ali Amini, who has been building custom designed homes on the Outer Banks since 2006. Since the company’s inception, Ali and his crew have managed the building of Outer Banks vacation rental homes, affordable housing and primary homes, townhome complexes, and a diverse variety of residences, which has totaled more than 150 different properties built. Ali and his team bring this deep expertise to every new project, as well as an understanding of what an owner envisions, to ensure that every potential dream home building project can turn into a stunning and a beautiful reality.
The company was created to ensure that clients receive the maximum value of their “new” home, regardless of property size or ultimate vision. This detail-oriented process begins with the careful design and planning of a future residence, and continues well after the home has been finished through continued support from the team of experts. Throughout their nearly four decades of business along the OBX, Finch & Company has helped build stunning three bedroom personal residences to make the ideal retirement or beach home, as well as 12 bedroom sandcastles that are designed to maximize rental income and catch a potential vacation rental guest’s eye. This knowledge of the local market as well as an adherence to professionalism throughout the building process has garnered Finch & Company a lot of accolades, as well as a solid reputation as a builder of choice for all varieties of projects.
The company stands out on the Outer Banks for a myriad of reasons, starting with their unique Affordable Housing Packages. These packages boast an exceptional floor plan, 1,500 square feet of living space, and a suite of elite extras such as granite countertops, hardwood floors, ceramic tile in the bathrooms, and stainless steel appliances. In addition to these homes that are ideal for year-round residences or stellar smaller vacation rentals, Forrest Seal L.L.C. can also help with a myriad of grander projects, including huge sandcastles that will maximize vacation rental income. From the small to the positively grand, the long roster of services provided throughout the building process by Forrest Seal L.L.C. – which includes help with site planning, design, permitting, material selection, and much more – property owners can rest assured that they are in exceptional hands.
The company is selectively small, and the owner Tom Haddon tackles just 4-6 projects per year with his specialized team in order to ensure personal service, an attention to detail, and an overwhelming positive experience for homeowners of all varieties. While “Green Building” can mean different things to different people, for Tom Haddon and Haddon Homes, it represents a commitment to using the best materials available, and to using modern technology to create high performance homes and residences in terms of both durability in the OBX elements, as well as energy efficiency. As a result, property owners who utilize this green-focused company, will enjoy a lifetime of lower utility bills, as well as a stunning and custom created structure to call home.
Sound Construction’s portfolio of properties is impressive, and even includes the famed “Nights in Rodanthe” house, which was used as a backdrop during the 2008 Richard Gere and Diane Lane movie of the same name. While this is certainly the most famous property the crew has built, it’s by no means the only stellar home on the beach, and the team at Sound Construction is adept at building properties that can catch a vacation rental guest’s eye, or which can present years of enjoyment for primary or secondary homeowners. As a result, Sound Construction remains one of the most acclaimed building companies on Hatteras Island, and even beyond.
The company was founded by Kenrick (Rick) Albaugh in 1977 in his hometown of Houston Texas, and later moved to Hatteras Island where it blossomed due to a continual series of exceptional work and happy clients. Since landing on Hatteras Island, Kenrick J. Albaugh has been instrumental in the design and construction of a wide range of both commercial and residential properties, and every new project begins with design consultation and ends with furnishing and décor recommendations, based on the local environment. From the 15-page detailed cost analysis at the beginning of the project, to the use of the finest materials and finishing touches, there’s a reason why Kenrick J. Albaugh has been the builder of choice for a myriad of grand Hatteras Island residences.
The Outer Banks Home Builders Association is a professional trade organization dedicated to informing, educating and promoting the members of the building industry. Commonly known as the OBHBA, we were officially chartered by the National Association of Home Builders in 1979 and grew from 37 people to our current 450 members. Our membership is comprised not only of licensed building contractors, but anyone who is involved in the construction of a house - from the Realtor who sells the property and the architect who draws the plans to the company that installs the window treatments and the furniture vendors at move-in. The "in-between" services include skilled trades people, building material suppliers, bankers, insurance agents, and anyone who provides support services to the building industry in the Outer Banks. And our membership is growing again.
There is a long list of construction projects that can be effortlessly tackled with the assistance of Overton Corporation, and their area of expertise includes residential building, commercial new construction, remodeling, premier metal building systems, insurance-based restoration, and land development. With this wide range of abilities, veritably every property owner with a visitor can be accommodated, whether it’s a homeowner that wants to bring a beach home up to modern standards, or a property owner that wants to create their dream business and “set up shop” on the Outer Banks. Family owned and operated, and adept at catering to clients of varying needs with professionalism throughout, Overton Corporation is a solid choice for any-sized construction project along the Outer Banks.
As a fully licensed and insurance contractor in the state of North Carolina, with more than 20 years of experience performing restoration projects, Phoenix Restoration is a time-tested resource for homeowners who need a drastic transformation. With detail-oriented service and an ability to address even the most devastated of fixer uppers, Phoenix Restoration is a great choice for owners who need a drastic renovation with miraculous results.
SAGA Realty and Construction is known for building beautiful luxury homes on the Outer Banks in a range of prices, from $300k to $5M+. We are also a full-service Real Estate Firm and a planned community developer. Simply put, we are the go-to place for all of your Outer Banks real estate and construction needs.
Sandbar Realty & Construction strives to “build every home as if it was our own,” and as a result, clients and property owners can expect the utmost in customer service from the initial consultation to the moment they step inside their new residence. The expert team is often involved in all levels of the process, from identifying and purchasing the right home site, to enlisting the services of top engineers, designers, and even financial institutions, which means that owners have professional guidance every step of the way. The end result is a home that year-long residents or investors will adore, with a prime location at one of the most scenic and coveted sections of the Outer Banks.
Sea Thru Construction Inc. is a family owned and operated construction company that has proudly served varying regions throughout Northeastern North Carolina for nearly 20 years. Located in the slightly inland “Inner Banks,” this construction company has built a solid reputation among property owners both on the Outer Banks and on the outskirts of the barrier island shoreline for their attention to detail, honest and open communication, and inherent sense of integrity that guides all of their projects. Sea Thru Construction Inc. can tackle a wide range of projects, beginning with new home construction and extensive remodels. With the ability to transform a classic beach cottage into a modern rental machine, as well as create the personal home or vacation investment property of an owner’s dreams, the sheer variety of construction projects that can be handled ensures every owner can be accommodated. In addition to new building projects, Sea Thru Construction Inc. also offers a host of other services including coastal concierge services for homeowners, rotten wood removal, and storm preparation for seasonal hurricanes. With the expertise to both create a dream home and make sure its properly maintained for years to come, homeowners can enjoy a great experience from start to finish when they enlist the services of Sea Thru Construction Inc.
The reputation and experience of Seaside Builders Inc. on the Outer Banks is second to none, as the team gives every project as much attention and care as possible to ensure the optimal results. The quality and livability of a structure is the number one priority on every single job, and is the driving force behind every construction project that Seaside Builders tackles. To adhere to this promise, the owner of Seaside Builders visits every job multiple times per week to ensure everything is running smoothly and is to the utmost standards, and the company is in constant communication with their clients to provides assistance every step of the way. Able to address all types of building projects – including residential homes, vacation rental homes, businesses, and other commercial structures – Seaside Builders has the expertise to make virtually any kind of dream Outer Banks building project come to fruition, no matter how big, or how small.
Outer Banks Real Estate
After a few days of sunny beach afternoons, fantastic local attractions, and all the amenities that attract people to the Outer Banks, many visitors find themselves daydreaming about a more permanent vacation. Whether your ultimate goal is to own an investment property, a retirement or vacation home, or simply a year-round home on the beach, the Outer Banks is filled with incredible opportunities and a variety of properties for sale.
Many frequent vacationers eventually turn into investors or year-round residents, and as a result, there are countless resources available for newcomers to the Outer Banks real estate market. With so many options, and so many varying factors when it comes to purchasing beach property - from flood insurance to rental income - the local market might be a little tricky to navigate at first glance. Thankfully there are plenty of experienced local REALTORs who have been in the 'Banks business for decades, and are experts at helping newcomers or first time buyers get their feet wet in the local market.
Your best bet before embarking on a new home or property purchase is to contact a local REALTOR in your area of interest, whether it's the northern Outer Banks communities, the central towns of Nags Head, Kill Devil Hills and Kitty Hawk, the picturesque soundside towns of Manteo and Wanchese, or the southern regions of Hatteras and Ocracoke Islands. Every area of the Outer Banks has real estate companies and experienced agents on hand to assist new buyers and answer questions.
That said, many folks who are new to the Outer Banks real estate market generally have a few standard questions in mind as they begin their search for their permanent dream home. With this in mind, feel free to review the list of frequently asked questions about the local Outer Banks real estate market, and remember that the majority of the year-round population and second homeowners on the OBX are folks who always loved the area, and decided to take a chance and pursue their dream of a long-term, forever home.
Realtors and the MLS
An online search, (like the one below), is the best starting point for embarking on a property purchase on the Outer Banks. The local MLS (Multiple Listing Service) allows REALTORS to enter extensive property details, multiple photos, and even virtual tours, allowing prospective buyers a wealth of information about specific properties in their OBX area of choice, without making a special trip to the islands.
Once you're narrowed down your search, it's time to contact a local REALTOR. A local real estate agent can help you obtain more details about your favorite properties, such as tax information or surveys, and can even help you find additional properties that meet your requirements. In fact, some local agents even offer automated emails that notify you the second a new listing hits the market that matches your criteria. For in-person visits, a REALTOR can also take you on guided tours to your favorite properties, while providing you with plenty of area information. Schedule an appointment with a real estate agent on your next vacation, or get started now with an easy and thorough online search.
Types of Properties Available
In a word, Everything. The beautiful thing about the Outer Banks real estate market as opposed to other beach resort destinations is that buyers have a wide selection of properties to choose from, from single bedroom soundside condos to 20 bedroom oceanfront castles.
There are literally thousands of real estate listings for sale on the Outer Banks, ranging from the Inner Banks towns and the Dare County mainland to the desolate beaches of Carova and Ocracoke. When you're first starting to look at properties for sale, it's imperative to narrow your search so you don't have to root through hundreds if not thousands of properties for sale.
Factors to keep in mind include property types (condos, single family homes, mobile homes, or timeshares), location (both town or area and proximity to a local sound or the ocean), and size. You'll also want a mental list of other amenities you'd love to have in your dream property, such as private pools, community facilities, game rooms, views, or any other special feature that's specific to your criteria.
Varying budgets and price ranges will also find plenty of options, with home prices starting at around $100,000 and escalating to $1 million or more, depending on the property.
Having trouble narrowing it down? A local real estate agent can help you take those broad strokes and turn it into a more manageable list of properties that fit your specific requirements. Don't be afraid to contact a local agent and ask for help - most all REALTORS on the Outer Banks are happy to provide free consultations.
Rental Home Investments
The majority of properties on the Outer Banks, particularly along the oceanfront and in tourism-oriented communities, are second homes or "investment properties" owned by individual owners, families, or groups of investors designated as LLCs.
Some owners who live in the area may choose to rent out their home themselves, but basically, an owner that wishes to rent their home or condo on a weekly basis will list their property with a local property management company in annual or two-year increments.
The property management company takes care of all the routine work that comes with renting a vacation home, including advertising, guest check-in and check-out procedures, routine and on call maintenance, weekly housekeeping, and much more. This allows the owner to rent their home to weekly tenants, but enjoy stress-free management and maintenance. In return, the vacation rental company typically receives a minor percentage of the home's annual income. North Carolina Real Estate Law does not allow all property management companies to set a standard commission, and instead, the percentage must be decided upon in a contract between the company and the owner.
In addition, the owner covers the cost of basic utilities or community / subdivision fees, although some costs, such as pool heat or cleaning fees for a pet friendly home, can be passed to the vacation rental guest.
Many owners find that listing their property with a local management company is well worth the commission, as the company can advertise, monitor, and easily care for the home in the owner's absence, ensuring that all an owner has to do is make sure they reserve their own "vacation weeks" well in advance.
Choosing your Town
Every community on the Outer and Inner Banks has the potential to be a phenomenal locale for a vacation rental home, however, the majority of rental homes are located directly on the barrier islands.
Look for popular communities or subdivisions within the northern, central, or southern Outer Banks regions, or simply head towards the water. The oceanfront and soundfront vacation rentals are among the most popular on the Outer Banks, simply for their incredible views and access. Properties that are one or two lots away from the water, and feature easy public access or gorgeous views, are also popular locales for vacationers, and even small hidden homes in the local maritime forests can attract nature lovers and tourists who love a little privacy.
You'll also want to keep an eye out for guest-friendly amenities, including a private pool, hot tub, game room, or even a theater room. Special amenities and perks go a long way with guests, and an investor looking to maximize their income should bear this fact in mind.
In a pinch, it's smart to start looking at the areas of the Outer Banks you love the best. After all, once you purchase a vacation rental property, it will be your lifetime vacation rental home as well.
Rental Home Income and Mortgages
There are many great reasons to purchase an Outer Banks vacation rental home, and the longstanding popularity of our resort community makes property purchases a solid investment. Each year the Outer Banks is noted as a top family friendly vacation destination with an emphasis on our award winning beaches and unique seasonal activities and festivals.
When considering an investment purchase, it's important to work with a local real estate broker who is familiar with the Outer Banks vacation rental industry. A seasoned agent can provide you with the information you need to determine if purchasing on the Outer Banks is a good addition to your investment portfolio.
Items you can request in advance of your purchase include:
- "Actual" Rental Income - In most ca you can review current and historic data on the actual rental income produced by the home you intend to purchase.
- "Projected" Rental Income - For new construction houses or properties not previously rented, a property management company can provide a projection by analyzing income from similar homes in comparable areas.
- Property Management Fee - Request the annual management fee that a property management company will charge to oversee the rental of this home.
- Utility Expenses - This information is not always readily available, but some owners are able to share this data with prospective buyers.
- Home Maintenance - An experienced broker can provide you information to budget for annual home maintenance costs.
- Pool and Spa Maintenance - When applicable, you can readily obtain annual expenses for maintaining pools and spas.
- Taxes - Annual tax rates are available for each property listed for sale.
- Insurance Costs - Local insurance companies can provide the amount buyers will need to budget for annual insurance expenditures.
Gathering this valuable information up front allows buyers to develop a much clearer picture of the costs to own on the Outer Banks and to determine the Return on Investment (ROI) percentage. In some cases, buyers will be pleasantly surprised to discover healthy 10-12% ROI and a few opportunities that exceed these amounts.
Beyond the investment aspect, purchasing an Outer Banks vacation rental home allows you to spend valuable time with your family at the beach!; With advance notice, owners can block weeks for family use, gift the use of the home to friends and extended family or donate a week for charitable functions.
Permanent Residences
Prospective residents will find plenty of properties for sale designed with year-round residents in mind. These properties many not feature the extensive game rooms, theater rooms or multiple bedrooms that a vacation rental home can have, but they do have lovely lawns and gardens, comfortable living spaces, and plenty of friendly neighbors.
Potential full-time residents have their pick of condos, single family homes, or even mobile homes which can be found from Ocracoke to the Inner Banks communities on the mainland. Local lenders are just as adept at assisting first-time homebuyers as they are investors, and can offer competitive interest rates for potential residents.
In addition, depending on the area, virtually every budget can be accommodated, and folks will find the selection of year-round homes competitively priced, especially in relation to other vacation destination and resort markets.
In other words, future residents will find plenty of opportunities available in their favorite areas, making the daydream of Outer Banks relocation well within reach.
Town Options for Permanent Residences
Like vacation rental or investment properties, year-round homes can be found in virtually every area and town of the Outer Banks, although there are some communities that are more residential in nature than others.
The Inner Banks areas of the Currituck mainland, Elizabeth City, and the Dare County mainland are an attractive possibility for year-round prospective buyers. For one thing, these areas are relatively quiet and free of tourism throughout the year, but still offer exceptional sound or canalfront access for water lovers. Also, with a location of 45 minutes or much less from the Outer Banks' barrier islands, all of these areas present new residents with an easy commute to an on-island job, or just a day at the beach.
For another, the prices in these regions are generally cheaper than the busier tourist hot spots, allowing first time home buyers or relocating families more options at a competitive price.
On the soundside of Kill Devil Hills lies Colington Harbor, a collection of namely residential homes and year-round neighborhoods with exceptional sound and saltwater canal access. This area of the Outer Banks is close to the action, but also offers proximity to the central Outer Banks' schools, community golf and recreational clubs, and public boat ramps and sound access points.
Manteo and Wanchese are also incredibly attractive locales for full-time residents, as they have a world of attractions and amenities, including the NC Aquarium, the Elizabethan Gardens, the Wanchese waterfront fishing docks, and the historic Downtown Manteo, but still maintain a small-town feel. In these areas, prospective residents will find a wide selection of year-round homes with gorgeous gardens, friendly neighbors, and easy access to essential services, like the DMV, government facilities, and local grocery stores and shops.
Hatteras Island is also home to a number of small and almost hidden primarily residential communities, specifically in Avon, Buxton and Frisco.
Avon Village is a quiet "small town" within a small town, and is the perfect neighborhood for families with uncrowded streets, generations of neighbors, and lovely small homes with a few vacation rentals sprinkled in. In Buxton and Frisco, year-round residents flock to the woods, where a number of residences are perched high up at some of the highest altitudes on the Outer Banks, safe from potential flooding, hidden from the main roads, and close to Hatteras Island's exceptional elementary and secondary schools.
While certain areas of the Outer Banks may seem designated for year-round residents, virtually any stretch of beach can serve as a fantastic year-round home. Keep your options open and don't be afraid to explore, and as a result, you're sure to find a wonderful property for sale that your family can truly call home.
Local Schools and Jobs
Because the year-round population of the Outer Banks is comprised primarily of "newcomers" who fell in love the area and eventually moved to the beach, folks interested in a beach relocation will find plenty of options and information available.
Your first stop for relocation information should naturally be your buyer's agent. Your REALTOR can provide you with a wealth of information, from local plumbers or electricians to hair salon recommendations. Don't be afraid to ask questions - your agent will be happy to assist you in getting a head start in fitting into the beach life.
Another great source of information is the Outer Banks Chamber of Commerce. As a representative collection of local businesses, vendors, and services available on the Outer Banks, the Outer Banks Chamber of Commerce can provide lots of helpful relocation information, from local voting centers to employment opportunities. A visit to their website, will certainly prove to be a fantastic introduction to the Outer Banks for new residents.
New residents can also check in with the county of Dare or Currituck, depending on where their new home lies, for essential relocation information. Both counties have extensive websites that list important department contact info, (like water department of sanitation department), available local government jobs, and local ordinances and regulations. Both counties also have personnel on hand that can help answer department specific questions.
Finally, once on the Outer Banks, new residents who want to be in the know about local events, community groups, or local happenings, are encouraged to check out their local papers. The Island Free Press and Outer Banks Voice both have online "newspapers" that can be accessed with just a couple clicks of the mouse, and the Outer Banks Sentinel and the Coastland Times are standard newspapers that cater and cover the OBX region. For upcoming events, community gatherings, and an outlet to what's happening on the beaches, the local papers are an essential tool for Outer Banks residents.
Flood Insurance, Taxes and Other Costs
One additional cost on the Outer Banks that many mortgage companies require, especially in areas that are close to the ocean or sound, is flood insurance. Many homes on the Outer Banks, with the exception of properties that are located well above sea level, are located in a flood zone, which means that in addition to the standard homeowner's insurance, prospective buyers will be required to purchase a flood insurance policy as well.
The good news is that flood insurance is relatively inexpensive. For example, flood insurance for a $200,000 loan typically runs around $500 a year, and that amount is factored into your monthly mortgage payments.
Some subdivisions or communities may also have additional costs, such as community grounds maintenance fees, or pool or club memberships. Condo complexes on the Outer Banks generally have an extra community cost for maintenance, trash service, or water service, although prospective buyers will generally find this information stated clearly on the real estate MLS listing.
Other than community specific costs and flood insurance, many new owners find those extra expenses associated with being a homeowner incredibly competitive with other areas. Tax rates are quite low on the Outer Banks, and in Dare County, extras like sanitation service or community dumps are free to all residents and owners.
Basically, prospective buyers who are concerned about the additional cost of owning an Outer Banks property have little to worry about. An experienced lender or real estate agent will also notify you well in advance of going under contract of any additional expenses you can or should expect.
Mortgages and Loans
Granted, mortgage companies on the whole are more cautious about distributing home loans, however lenders on the Outer Banks are specialists at second or investment home purchases, and can generally make the home buying process a lot simpler for new OBX buyers.
In the mid-2000s, obtaining a mortgage was a simple affair, with plenty of fixed rate, adjustable rate, and balloon payment options available. Today, those same rates and plans are available, however new buyers should expect a little bit more paperwork and time to complete the process.
Expect to have two years of tax returns available, a year of income statements, and detailed bank statements showing your earnings and savings. Lenders may be more detail oriented these days, however, buyers will find that once qualified, the options are endless. Adjustable rate mortgages (ARMs) are still a relatively popular option for buyers who expect to own the home for only a few years, however with the incredibly low interest rates, fixed rates at 10, 15, 20 or 30 year increments have more or less become the standard for Outer Banks buyers.
Ready to make an offer? Many lenders are happy to review your financial background ahead of time, and give you a pre-approval letter to submit along with your offer to purchase. This lets the sellers know you're a serious and qualified buyer, and can also give you the peace of mind of knowing once the contract is signed, there won't be any financial headaches along the way.
A local real estate agent can give your local lender recommendations, or you can check with the Outer Banks Chamber of Commerce for local mortgage companies, lenders, and banks that specialize in second homes, investment properties, and the local Outer Banks real estate market.
Outer Banks Land
Visitors are delighted to find that only certain areas of the Outer Banks can be developed. For example, on Hatteras or Ocracoke Islands, it's not unusual to find 4-6 miles of developed areas surrounded by a dozen miles of undeveloped seashore, managed and maintained by the National Park Service.
However, prospective buyers will still find plenty of undeveloped lots and tracts of land available for sale in virtually every community of the Outer Banks. And prices are incredibly attractive to developers or builders, ranging from the $20,000s to the $200,000s or more for prime oceanfront or soundfront locations.
The beauty of purchasing a lot is that an owner can plan and execute a dream home to their exact specifications, including every amenity they desire, and discarding any extras they can do without. Potential lot or land buyers will also find a number of reputable local builders available to complete their vision. These are businesses that have been building Outer Banks homes for decades, and understand both the landscape and the best way to utilize the potential of a particular lot, (for example, the best deck placement for the best views.)
For prospective Outer Banks home owners who have a clear vision in mind of their dream house, it is most definitely worth the extra leg work to purchase a lot, and then contract a local builder to fill in the blanks. Building prices on the Outer Banks are competitive, and new owners will find no shortage of reputable and locally recommended builders available to construct their dream home.
Additional Considerations
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Like many national communities, the Outer Banks has its fair share of foreclosures, and prospective buyers should be on the lookout for phenomenal "short sale" deals. A short sale is basically a last ditch attempt by the bank or an owner to unload the property off their hands by offering it at an exceptionally reasonable price for a limited amount of time, and as a result, buyers can secure a property at much less than the property's actual value. The only drawback with a short sale is that many properties come with an "as is" provision, meaning that while home inspections are certainly allowed, the seller won't be conducive to making any repairs.
For handymen and handywomen, however, a short sale or foreclosure is an ideal opportunity to rapidly increase the value of a property with a little bit of elbow grease. As such, the short sales and foreclosures on the Outer Banks are definitely worth a look for buyers who love a good home improvement project.
- Want to maximize your rental income? Then start your vacation rental home search in the winter or early spring. As a general rule of thumb, annual rental income is transferred from the seller to the buyer on the closing date, which means that if a closing occurs in March or April, the buyer can enjoy a full season of rental income without any lag from the previous winter. The spring, in fact, is generally known among REALTORS as the most active season of second and investment home sales, simply because of the full year of income. Have fun hunting, but bear in mind that as the Outer Banks' most productive real estate season, being an early bird might be a huge benefit in securing an attractive property.
- Have specific criteria and a little time before you nail down a decision? Sign up for automated email updates. Many local REALTORS can take your specifications and assign you to a mailing list sponsored by the MLS which will send you up-to-the-minute notifications on new properties for sale or price reductions. By receiving instantaneous updates on properties related to your criteria, you can ensure to be the first to know when a new property hits the market, or one of your favorites has dropped its listing price.
- For prospective rental or investment property owners, many property management companies also have in-house real estate sales teams that work with property managers on a daily basis, and can help prospective buyers in finding homes that are very guest-friendly. By choosing a REALTOR associated with a property management company, a buyer can essentially maximize their potential rental income by learning, first hand, what properties can generate the most visitor interest, and what improvements can be made to specific properties to make them more renter-friendly. In fact, many buyers find that in addition to their buyer's agent, they also have access to a local property manager that can guide them in additions or changes that will be the most attractive to potential renters.
Basically, if you want a great rental home, then go to the source. The combination of expert real estate agents and expert property managers will help your prospective vacation rental home reach its full earning potential.
Many folks dream about owning a home on the beach, but few realize that a second or primary home on the Outer Banks is actually a very obtainable reality. Whether you're looking to invest in a vacation rental property your family can enjoy for generations, interested in buying a lot to lay down the groundwork for your dream home, or simply want to enjoy the beach life full-time with a permanent relocation, you'll find the Outer Banks real estate market perfectly accommodating to your expectations.
Best of all, the sheer variety of properties for sale virtually ensure that every taste and budget is accounted for, so prospective buyers will have no problem finding a portfolio of homes or lots that meet their specific criteria.
Intrigued? There's no harm in learning a little more, and experienced local buyer's agents are always on hand to answer questions, whether you've visited the Outer Banks for a day or a decade. On your next vacation, don't be afraid to contact a local Outer Banks REALTOR and take your first step into being a happy, full-time supporter of the beach life on the Outer Banks.