OBX Neighborhood

ONCE IN A WHILE . . . .

Every so often, you see something that catches your eye . . .

Driving down the by-pass one day I saw a bumper sticker.  After some pondering, followed by some laughter, I realized I read it for a reason!  It said, "DON'T BELIEVE EVERYTHING YOU THINK."

Our housing issues are troublesome at best.  Prices are down, mortgages are harder to get, there are less housing starts, and work is hard to find for many.  And as always, we are inundated by the media that never ceases to report the negative. 

Real estate is selling.  People are buying.  Many are looking for that "great bargain" but the key is they are looking.  Many who were priced out of the market are back as active buyers.

Point being . . . don't let others do your thinking.  Look further and read and listen to the positive -- it is out there!  97% of the mortgages are current!

Fix it, clean it, paint it, lower the price, but make it stand out.  Be noticed.  Allow your true beliefs about your home to stand and deliver.  Don't allow your thinker to fail you.  As the sticker said . . . "DON'T BELIEVE EVERYTHING YOU THINK!"

FINALLY! SOMEONE IN THE MEDIA SPEAKS THE TRUTH ABOUT THE FORECLOSURE CRISIS

For years, real estate has been a good long term investment.  Our personal homes are just that, our home.  They are a long term wealth builder for most of us who live in them, love them, and keep them current and improved . . . which, along with the economy and apprecation, help to increase their value over time.

In these difficult times, it seems the media always seems to focus on the negative -- all day, every day.  So what else is new?  Many who are facing foreclosure have borrowed equity from their homes for various reasons.  Some are legitimate, but most are taking money they thought was equity, but really was market appreciation.  Many who are in trouble spent this money on personal choices based on their spending habits.

We are facing a correction.  This correction is an economic correction.  It happens in the stock market, in our retirement and investment funds, and now, most visibly, in the housing market. 

Dennis Kneale on his recent PARTING SHOT segment on CNBC's Business Nation, spoke about the current foreclosure crisis.   I think you need to watch -- he gives an honest, true picture of the real story behind the foreclosure / housing crisis.  It's about time someone took the initiative to do this and get more of the true picture out there.  Once you watch the video I think your perspective will change.

The Outer Banks real estate market is beginning to show signs of reaching the "bottom" so to speak.  Are we there yet? is not just a question children ask mom and dad on their way to the beach!  Our buyers are asking that question every day.  Once the bottom is reached, everyone will know and the inventory of available homes we have will shrink.  Are you watching close enough?  Is it your time?  Have you kept abreast of the many changes in the mortgage market? 

Look for upcoming posts on the new guidelines and trends in the mortgage market.

I always welcome your comments!

THE FORECLOSURE DEBATE IN DC

The reality of the foreclosure problem is hitting many here in the Outer Banks real estate market.  Little help seems to be forthcoming from our Legislature.  One of the writers for Realty Times is well known for his opinions on this subject, and I feel this one is well stated.   Although our foreclosure issues have, in many cases, been brought on by our "over spending" and "consumerism" and the lifestyle "we want to live," there are those who have been lead into this difficult path due to past lending practices.  This article speaks to the need to assist people who believe they have been misled. 

Frankly, the costs incurred by lenders and others in the disposition of foreclosures may be lessened if some help were available to folks who truly want to resolve the issues and keep their homes. 

Read the article by Peter G. Miller . . . . 

The "Fake" Foreclosure Debate in Washington.

LET YOUR VOICES BE HEARD!

There is no time like RIGHT NOW to start thinking about our choices in November.  We ALL want the current economic conditions to improve . . . most thinking "Hurry Up and Change Already!" -- kind of an Archie Bunker type of attitude. 

On the Outer Banks, as in most parts of the country, adjustment is a common word we hear as it relates to the Outer Banks real estate market.  Investment properties, building, real estate and development are a major backbone of our local economy.  Over evaluation, over leveraging, under saving, liberal spending and lifestyles have left us pretty much on par with the rest of the nation. 

Things are changing... They have changed! Our economy is beginning to point in a positive direction, or will be soon.  We continue through this adjustment period with our energies focused on doing the absolute best we can for our investor clients, local businesses, families and the communities we all share.  We need to know how our Presidential Candidates are positioned in their beliefs and policies -- we all have a duty to vote, and to make it an educated vote, in November.

Take a minute and read this article Where McCain and Obama Stand on Housing, prepared by a media arm of the National Association of Realtors.  It is a simple read and certainly one that will spark your interest in learning as much as possible as you approach your decision this Fall. 

CALL TO ACTION - SAVE HATTERAS ISLAND BEACH ACCESS!

I am writing today to inform you of an issue that has been brewing and one you ALL need to have a say in . . .

Everyone loves the Outer Banks.  No one loves it any more than those who visit here, grew up here, relocated here, or just passed through our beautiful area.  Many areas on the Outer Banks are protected in one form or another by the Federal Government.  Pea Island, Oregon Inlet, and the entire Cape Hatteras National Seashore fall under the purview of the National Park Service which has always allowed "on-beach" access to everyone, including the privilege of driving responsibly on the beach.  How many times have you driven out on one of the Hatteras Island beaches for a day of sunning, surfing, fishing or just soaking in the magnificence of this special place.  This may all come to an end soon.

In the Fall of 2007, the National Audubon Society, the Defenders of Wildlife, and the Southern Environmental Law Center filed suit in Federal Court against the United States to limit or ban access to many of the primary areas of the Cape Hatteras National Seashore including Oregon Inlet, Cape Point, and most of Ocracoke Island.  On March 13, 2008, the Department of Justice Declined to contest the lawsuit which will be heard on April 4, 2008 in Elizabeth City.  This effectively means that vehicular beach access will be closed -- think about the impact this will have on the local economy. 

We on the Outer Banks are asking for your help.  Go to SAVEHATTERAS.COM to get informed on this issue.  Join our fight and click on the "PleaCast" to send a letter to the lawmakers and politicians who can help us protect access to OUR beaches. 

IF YOU CAN'T SELL IT . . . MOVE IT!

The Outer Banks Real Estate Market is full of properties that are "For Sale."  Many are trying anything to sell them . . . price reductions, incentives, bonuses, cars, boats and even a new Hummer H3 have been attempted (The H3 worked!).   Here's a creative approach to getting rid of an older home - move it!  This home most likely left an oceanfront location to make way for a new home with all the bells and whistles. 

Nothing takes the place of a property in great condition.  This one was in a state of "demolish it" or "move it."  Obviously, someone made the choice to move it.  Homes like this one are usually free to anyone willing to take on the expense of moving it.  A licensed house mover will give you the energy needed and perform the job for a reasonable fee.  The power company will charge you plenty - this one cost $11,000 just to raise wires and other utility obstacles as it moved down the Bypass towards it's new location on the westside of Kill Devil Hills.

After arriving at it's new home, this house will be professionally renovated; brought up to current building codes and hopefully, find a new family!

To sell your home, you will need to make its appearance look the best it can . . . buyers are really critical!  If you cannot attract them from the street, you have lost the battle before you even start.  Another crucial weapon is effective marketing from your Realtor -- great photos, effective marketing campaigns, exposure on mulitple web sites, and the ability to reach a nationwide and even a worldwide audience.

OUTER BANKS REAL ESTATE MARKET - IT'S ALL ABOUT THE INTENT

What is the seller trying to do?  Sure, they are trying to sell . . . but are they facing the truth in today's market?  Is the buyer really trying to buy or are they focused only on getting a "steal?"  In today's real estate market, it is our job as Realtors to help those we are serving to recognize and understand the changes in the market.  Yes, we too have to understand and accept the change that has taken place, and we need to know that even though we are also signficantly affected, we must remain true to the principals we should always live by.

As a Realtor today, it is our job to assess the needs of a potential client.  It is further our responsibility to educate those we communicate with and help them assess and recognize their true needs and wants since change has happened and it won't ever go back to the market of the past.

To that end, we must stay true to the principals we were raised with -- honesty, integrity and character must remain as the foundation of our business methods.  If we as Realtors do not keep these core elements at the forefront in an unquestionable reality, our industry will not evolve into a respected profession that clients will use for the long term. 

Julie Escobar wrote an excellent piece for Broker Agent News this past weekend that capsulates these thoughts well . . .

IS THE IRS TARGETING REAL ESTATE AGENTS?

In this ever increasingly difficult world of Outer Banks Real Estate, and around the country, a new approach appears to be on the IRS' radar.  If it hasn't been hard enough to adjust to the change in market conditions, we apparently have another issue to look out for. 

As reported this morning by Diane Kennedy in the Realty Times, the IRS is apparently looking to find more ways to collect taxes from people who are, in their eyes, stretching the limits of a benefit we have fought to protect for years.

2007 - The 5th Best Year in History!

Although it may not seem that way here on the Outer Banks, home sales in the were the 5th best in recorded history.  The good news is that our real estate market is moving.

2007 brought us 1214 Residential home sales. There were 270 pieces of Land sold this year as well. Although this is a far cry from years in recent past, the fact is that real estate is still selling. Most professionals I know here on the Outer Banks are working with numerous serious clients who will buy real estate in the near future. There are some really nice opportunities out there.

True professionals in real estate, here on the Outer Banks and other places, have a wide array of services they offer their clients. The most important seems to be information. Knowledge of market conditions and a view of the direction things are heading are paramount. No one really can truly tell us when the bottom is here, but a professional with a long history of experience and service can make a difference in helping you realize when it is ‘your time’ to make a move.

Helping the client address priorities and goals are really the best ways to help them. Understanding the clients investment goals is a key to a successful real estate investment. A long term approach is the only way real estate works in a true investment comparison. I would suggest that 5 years is a minimum. It may be even longer than 5 years to many.

Buyers and Sellers need to be working with an experienced professional. That agent needs to be effectively marketing property throughout all areas available to them. The Web is a major area most fail to address effectively. Your needs are the only ones that matter. The professional REALTOR should stay current with all areas of marketing opportunities.

Know who you are working with and what they are doing for you.  Hold them to a higher standard. Those REALTORS who are addressing these standards are the successful ones. They are not working for a commission, they are working for you. The commissions take care of themselves when we take care of our customer’s needs.

Should you need some professional consultation about your needs and circumstances, feel free to contact me via email or direct. There is a professional waiting to help.

Our wish to you is a Healthy, Happy and Prosperous 2008! Remember tonight is Amateur’s night. Be careful and celebrate safely, and if needed, use a designated driver or a cab!

ICE SKATING ON THE OUTER BANKS? YES!

We moved to the beach to enjoy many types of things - the sun, fun, sand, nature and sometimes just a walk on the beach. When the thermostat drops and the breezes are steady the cold reminds us of the value of things during a warmer time of year. You might even find yourself complaining . . .  ‘Who Me’?  Many have moved here to leave the cold and snow, salt and cinders and the black and Yuk of a northern winter.

We fail to easily remember the fun we had on those special winter days - a fun ski trip, making a snow man with the kids, or simply a beautiful brisk snowy morning walk. Well, one thing we always enjoyed (even if from the sidelines laughing at others because we were too afraid or embarrassed) was ice skating with friends or with family.

Even though this is North Carolina and we live at a beautiful beach, you now have the opportunity to take your date, kids and family for an outing at a skating arena. One local business is taking us nostalgically back to the fun in our past lives. The Weeping Radish Brewery & Restaurant just south of Grandy in Jarvisburg, has come to the rescue.

This Friday, The Ice Haus opens for your Holiday fun.  It is an outdoor covered ice rink here for our enjoyment.  They will be having special events, Christmas hay rides, winter festive activities, pictures with Santa and public ice skating and rentals.  They have a full menu and a snack bar and might even have a beer for mom or dad while they take a break -  there is even a mini-Zamboni!

I applaud the owners of the Weeping Radish Brewery for their commitment to opportunity and for taking the chance, but most of all for providing us the opportunity for some good old fashioned fun.  Do your family, friends and loved ones a favor and find the time to enjoy the chill in the air.  Take them skating and enjoy some hot chocolate and break a smile and laugh.  We can all use a little fun and laughter in our lives.

The Ice Haus begins operation on Friday, December 21 (just in time for the Holidays) and will remain open through early March.   Enjoy!

ARE YOUR OUTER BANKS REAL ESTATE INSURANCE MATTERS IN ORDER?

Kansas, Missouri, Oklahoma ice storms, Santa Ana winds, and the wild fires, floods, and hurricanes . . . all these events across the country this year have left us all with serious questions.  Are we properly and adequately insured?  Are our papers in order?  Do we have all the papers in a safe place?  Here on the Outer Bank, we need to know our flood insurance issues are in order.

A few weeks back, one of my longtime Consulting Clients sent me a copy of his flood insurance premium for the coming year. It was a wild intro email indicating "How can they raise my premium from $352 to $1526 . . . My home is in an X zone . . . What's Up with That?" . . . I understood why he was freaking out!

FEMA monitors (and administers) the National Flood Insurance Program and has independent business firms administer the backbone of their Flood Insurance Program. They, as many entities have, evolved into using GPS mapping systems in their business model.  With FEMA, the identification system is used to locate property on a US Flood Mapping System administered by the Army Corp of Engineers.  Mortgage Lenders, appraisers and insurance companies use independent firms as an outsourcing of  flood certifications that are required as part of the mortgage lending and servicing business.

My client assumed an existing flood insurance policy from a prior owner when they bought the property back in 2003. It was not originally in a flood zone, and did not fall into a flood zone when the Army Corp of Engineers recently remapped the United States.  Dare County's new flood maps took affect in September of 2006. In a random audit of insurance policies on various properties (according to the Insurance Agent who handles the policy), FEMA's GPS system indicated my client's property's flood zone changed and it was now in an "AE" flood zone. Hence the serious increase in premium. Well . . . the GPS was wrong!  I assured my client, as I always do following a successful sale or purchase of a piece of real estate, I will help you handle this and "get it right".

Your property is "Grandfathered" based on the original elevation and building permit issuing date. This means that the house, unless the elevation or lowest level of living has changed since being built, is allowed to remain in the original "insurable flood zone status" as when originally built. This further means that FEMA cannot force the new flood zone on you, provided your home has had "Continuous Coverage" and you have evidence proving the home is as originally built. You will need an Elevation Certificate and verification of the original building permit date of record with the Town or County.

With so much change of ownership in real estate -- particularly in the Outer Banks real estate market -- many present owners were never given, or did not know to ask for, these documents when they bought their home.  Many, like my client, assumed an existing flood insurance policy. Well everything is different now.  With the losses experienced by the National Flood Insurance Program, these random audits are apparently being done. They have been occuring based on the remapping in Currituck and Dare County according to few local independent insurance agents.

When and if this happens, you will need to do your research fast!  Normally, the notice comes just a few weeks before renewal. Sometimes, unless you can find a copy of the Elevation Certificate and the original permitting date for the building project, you will need someone to do the research. If your insurance agent is like mine, they are limited to just communication of information. You need to get the information they will need to communicate to your insurance carrier. In our case, the agent was a great help in understanding a strategy and what would be needed. He also went to bat with FEMA for a manual opinion beyond an impersonal computer decision.

Better yet, why not start today and get these items together.  Keep copies readily accessible for when you need them. Documents can be saved in a PDF format or in a paper file, but the original should be kept in a safe fireproof and dry place. The difference in not having them and letting a new premium status be applied is just one bad part of this issue . . . it can contribute to a less salable property in the future! This could cost you far more than a premium increase annually.

Counties and Towns are destroying files from years back and many original files are no longer available. Being prepared is something I committed to years ago when I earned my Eagle Scout Rank. It is our motto!  Ironically, it has become a staple in life!  It is better to be prepared than to have to scramble at the last minute. Fortunately, for my client, they had me. I routinely help solve these issues for my clients and others.

As an Accredited Consultant in Real Estate, I am qualified to consult with you regarding your Outer Banks real estate needs.  Many find it is a great help to have a Consultant assist them in their decisions in business.  Why not consider the assistance of a Consultant in your Real Estate matters? It is a small investment in a good strategy; Should I sell?  Should I buy?  Should I remodel?  What Improvements should I make before I sell or after I buy?  Are my insurance policies in order?

Flood insurance is only one part of your Outer Banks real estate Insurance needs.  Now is a good time to review all your needs for your property here.  Your active involvement is critical to a successful ownership experience! 

Do you need Qualified Professional Consulting?

Bill Holt, Accredited Consultant in Real Estate- ACRE
On The Outer Banks, NC ~~ www.obxmls.com
Bill@obxmls.com ~~ 252.619.7010 - Direct

GOOD NEWS IN THE FACE OF OUR NEGATIVE MEDIA

Every day we hear about a mortgage bank closing and certain mortgage products being eliminated. This economic downturn is in part the result of the relaxed credit activity of sub-prime lenders. Interest rates on these sub-prime loans are adjusting to higher rates, making them unaffordable to many investors and homeowners causing some delinquent mortgage payments and some home foreclosures. Borrowers with good credit and stable income are having no difficulty in making their mortgage payments, and new mortgages are available to them today just as they were a year ago.

The truth of the matter is that as of July 30, 2007, 97.4% of all US mortgages were current. 30% of all real estate in the US is owned free and clear. Traditional mortgage programs are available. Underwriting is tighter but mostly unchanged and funding is reliable. In fact, mortgage applications are steady according to the Mortgage Bankers Association. Some Sub-prime loans are still available, but are more difficult to find and rates and terms are more representative of the risk this type of lender is for the lender.

Rising inventories of unsold homes allow buyers many more homes to choose from and mortgages with historically low rates are still available for buyers with good credit. Sellers are becoming more realistic in pricing and more open to fair negotiations. There are some real values out there for the Buyer who is ready and able to buy. They should be ‘willing’ as prices have adjusted and a Buyer can negotiate a really good price and terms for the property they select.

Over the last 50 years, Real Estate has averaged a 6.9% appreciation rate per year. 2007 will be the number 4 or 5 highest dollar volume of real estate sold in the US since they began tracking. The general Media seems to need shock and awe to scare the public and drive viewers to their medium. Each market is very specific and the Media never puts a Local position or information on their story so people tend to think everything has gone sour.

Our market here On The Outer Banks, like many, has softened. There are properties selling and those who are choosing to take advantage of opportunity are the winners. Today’s Buyers are getting great rates and terms on money they borrow and an even better price than they might have ever hoped for. Knowing when the bottom hits is a true gamble most cannot hit with any accuracy. A home or real estate investment is a ‘long-term’ proposition. It is still one of the best investments you or your family can ever make.

Don’t let the negative Media deter your interest in buying On The Outer Banks!

Welcome to OBX Neighborhood!

OBX Neighborhhood has been launched to provide a community for information, lifestyles and humor about our wonderful Outer Banks Real Estate Community. Family, Friends, Vacation Guests and Property Owners will find this On-Line Community a delight in sharing and fun. We will drift through our ever changing real estate market, myths and facts. We intend to celebrate our special lifestyle here on the Outer Banks and feed the community with interesting bits of thought, information and knowledge to facilitate a diverse community as they live and enjoy this special place we call home.