Outer Banks Real Estate

Mid Currituck Bridge Update

I read an article online today about the proposed Mid-Currituck Bridge had eliminated a few potential routes south of Aydlet Road because of some loblolly trees found in a marsh.  So it sounds like C1 and C2 are the leading candidates for now.  Estimated completion date is still 2013.

The proposed toll bridge would connect upper Currituck to Corolla which could cut down a tremendous amount of windshield time for those heading to the northern beaches. 

Here are some links for information on the bridge.

North Carolina Turnpike Authority

Map of proposed routes

Internet Safety - How Safe Are You?

It has been a long week.

CNN published a story today about the Botnet probe - the alleged threat from a New Zealand teen trying to take over one million computers.  Sounds like a plot from Doctor Evil.  Mmmwwwaaaaahhhhaaaaahhhhhaaaaa. 

I considered my computer to be pretty safe from viruses, spyware, adware and malware until last week.  I have Spybot, Ad-Aware, and Norton 360 (no link for a reason) loaded and ran routine checks to keep things in line.  My browser of choice is Firefox which has some great built in features to protect against malicious code.  Why do I like firefox?  Two words - tabbed browsing.

Thanksgiving brought on some added treats.  I started getting a lot of pop up windows (from Internet Explorer) so I knew something was wrong.  A nasty spyware program - Smitfraud-C.CoreService had made it's way on my computer.  Ad-Aware didn't see it, Norton 360 didn't see it, Spybot found it but could not remove it.  I thought I would approach the folks at Norton 360 to solve the problem - especially since it was the spyware program that I paid for.

After many hours of online chat with their support group, I found that Norton was glad to solve the problem - for the low low fee of $99.00.  My question was - why am I paying for a program that only covers part of the threat.  Their program touts coverage from Spyware, Malware and Viruses.  The tech supports response was that this particular spyware was considered to be a "third party program" and was not covered.  If I wanted it removed, I will have to pay.  This is our company policy - will that be Master Card or Visa.

I asked if Norton had products I could buy that would fix the problem and protect me from future threats - no luck.  I then decided to look for alternatives online.  The spyware program I bought was Spyware Doctor and it is awesome.  $29.95 solved my problem and I doubt I will ever subscribe to Norton again.   

Living the Dream by Jeff Scott

Jeff Scott from Scott Team Realty recently published a book titled:  Living the Dream - A Comprehensive Guide to Buying, Owning and Selling Real Estate on the Outer Banks.  Jeff has been involved in Real Estate on the Outer Banks since 1989 and currently serves on the MLS committee for the Outer Banks Association of Realtors. 

I found the book to be easy to read with good information for anyone considering purchasing a property on the Outer Banks.  The book is broken into three sections: Buying, Owning and Selling an Outer Banks Property. 

His section on the lending process was accurate and easy to follow. 

I am a big believer in setting up an exit strategy in any investment and I think Jeff covers those areas well in this book.  If you are interested in purchasing a copy - you can order it online.  Congratulations Jeff. 

Outer Banks Real Estate Market - Who's to blame?

There seems to be a lot of finger pointing going on in the Real Estate world today.  People want someone to blame for the current market conditions. 

Mary Umberger from the Chicago Tribune covered the National Association of Realtors conference held in Las Vegas in mid November.  I found a couple of interesting quotes from Lawrence Yun - the Chief Economist for National Association of Realtors. 

"Given pent-up demand and historically low mortgage rates, it's a fairly easy call, from my point of view, that we are in a market recovery," he said.

That is an interesting set of data used to determine that we are in a market recovery.  The second quote really caught my eye.

Yun said that the housing meltdown resulted from a "period of greed" and blamed mortgage lenders looking for big commissions, global investors seeking "juicy returns" and bond-ratings agencies turning a blind eye to risk.

Mortgage Lenders are the reason for the housing slump?  Are you kidding me?  There are bad lenders out there but I don't think they can accept the lion's share of blame for the current market.

Another theme I have heard lately is to blame the media.  "The media just won't let this story die" or "The media is hurting our market".  Inman News published an article that I think puts things in proper perspective.  This quote says it all:

Another reader, Michael Blomquist, says there is a difference between negativity and "realistic projections":

"Real estate has been hurt by spin, but irrational exuberance has been much more damaging than negativity could ever be. I for one am tired of the attacks by those who don't know the difference between ignorance and optimism. Too many 'optimists' view 'realistic' projections as negativity and try to discredit those with opposing views," he wrote.

I believe irrational exuberance from all parities involved is to blame for the current market conditions.  Trying to put a positive spin to cover up the facts will not help any market recover.  Consumers want facts - not fluff. 

The Outer Banks Real Estate Market has been hurt by the slowdown more than the surrounding markets.  We rely heavily on the investors and second / vacation home buyers and they stopped the frantic pace of purchasing property in the Fall of 2005. 

That being said, I think a legitimate argument can be made that the Outer Banks Real Estate Market might be one of the quickest to recover.  With above average reduction in pricing, low interest rates and some very motivated sellers - we might be in for an early spring. 

Ideas on how to sell your Outer Banks Real Estate

I heard a show on NPR on Monday about a Realtor that burried a Saint Joseph figurine in the yard of her listing to make the home sell.  I had never heard of this tradition but apparently there is an established market for "St. Joseph Real Estate Kits".

It seems that when the Real Estate market slows - the kooks come out to play.  I would be a little concerned if my agent showed up with one of these kits and a shovel as a way to sell my home.  It reminds me of a book I read a while back - Hope is not a Strategy. 

What would I do to sell a vacation home on the Outer Banks (if I were a Realtor)?  I would focus much of my attention on existing and emerging technology - Web 2.0.  The majority of people find properties online before they talk to a Realtor (or a mortgage lender - shame on you but that is a topic for a later post).  I would imagine that the statistics for online searches on the Outer Banks Real Estate Market is even higher.  Here is my current order:

The MLS is a closed system but it is the first step in promoting your house to other Realtors.  It is a great tool but but it does little to promote your property online.

Trulia is my current favorite listing / mapping tool.   It is easy to add your listing and customize  your listing with your contact information.  For the map based crowd - it is the cream of the crop.

Zillow would be my second choice of online services - love them or hate them but they get a lot of traffic every day. 

I would also look at using Realbird or VFlyer (or both) to make custom flyers, maps and web sites for my listing.  Both services send your listing to multiple listing services online.  Some of the services one or both feed are Google Base, Edgeio, Vast, Trulia, Oodle, Backpage and Craigslist.

I would add a virtual tour or a video of the property on my website.  Stuart Chamberlain offers a great virtual tour package that is affordable, professional and can be added to any web site.  Video can be very expensive and in today's market - I would only offer professional video if the seller agreed to pick up the tab.  These services provide valuable information to the buyer which helps narrow their search of properties.  This saves everyone time and money. 

I would use Microsoft Live Maps to show the property and the proximity to other restaurants, beach accesses and services.  People can get a great idea of what is around them by zooming in on the birds eye map technology.  As of today, they really have the competition beat for Outer Banks views.  You can see an overhead from four directions at the height of one of those planes carrying the banners along the beach in the summer.  Google will be using the services of a new satellite this summer and we have seen some improvements but they have a long way to go to catch up to Microsoft.

Lastly, I would consider adding a Craigslist post - please make sure you add an s because the alternative is not safe for work.  Don't expect to get rich here.  You will be mixed in with the kooks selling the Saint Joseph Real Estate Marketing Kits but you never know where a potential buyer is looking for an Outer Banks Vacation Home.

If you have any additional ideas or suggestions, please leave a comment.

   

Federal Mortgage Reform passes the House

The US House of Representatives passed the Mortgage Reform and Anti-Predatory Lending Act of 2007 with a vote of 291-127.  It is now headed to the Senate for approval.  There are many opinions on this new bill and how it will affect lenders and consumers.

If passed and approved by the President, the bill will create a national licensing system for all loan officers and mortgage lenders, end Yield Spread Premiums and ban loan officers from originating loans that borrowers don't have the ability to repay.  I am guessing that Stated Income, No Ratio and No Doc Loans will take a hit.  North Carolina recently passed the North Carolina Residential Mortgage Fraud Act that goes into effect on January 1, 2008.

Here is what others are saying about the proposed federal legislation:

• The Truth About Mortgages
• Appraisal Scoop
• Bankrate Mortgage Blog

For the times they are a-changin'

Insider's guide to Outer Banks Mortgage Rate Sheets - The great bait and switch

One of the "tools" in the mortgage business is the Mortgage Rate Sheet.  It shows the "current mortgage rates" so Realtors can provide this information to their clients.  The rate sheet is usually faxed or emailed weekly and I see many of them on the bulletin boards of Realtor's offices. 

Bottom line - I think the current rate sheet game is nothing more than a Bait and Switch and it hurts everyone.  Most lenders quote rates with one point origination fee (which is one percent of the loan amount) but those actual rates would cost the customer two to three times that amount.   They use the fine print at the bottom of the sheet as a get out of jail card - the "Rates are subject to change" card.  You might ask - Why would they offer something they can't deliver?  Because they think it will get them more business.  They think if they quote the lowest rates, Realtors will send them more business.  What is really does is set false expectations. 

The Mortgage Lender loses credibility - the customer is expecting a much lower rate than what they will get for a one point fee. 

The Realtor loses credibility - They pass along the rates to the buyers.

The buyer loses faith in the process.  Some don't find the truth until they show up to the closing table. 

I have decided to start sending rate sheets.  My rates come directly from my pricing engine so I know I can deliver what I am offering.  The rates won't be unbelievably low - but they will be accurate.  My rate sheets will also include some fine print:

These are the current rates for a single-family primary residence based on a 60-day lock. Your loan's final rate will also depend on specific characteristics of the loan transaction and your credit profile up to the time of closing. For more information, please refer to the Loan Pricing Disclosure.

If you are interested in receiving a weekly rate sheet or you have any questions, feel free to contact me.   

OBX Bank Owned Real Estate Statistics

I recently spoke with Pat Watson from Help U Sell Outer Banks about the state of the local Real Estate Market.  Pat provided some information on the bank owned properties and the difference between the listing price and the selling price. 

Here are the bank owned sales from August 1. The sale price to list price ratios are not very wide. I guess what I would say is that if anyone is looking to purchase a foreclosure, they should work with an agent skilled in maneuvering through the process, even though it will cost some money. Banks will often purchase the property back thinking they can do better in a straight sale than even the highest foreclosure bid. In general, a person will get a better deal in the foreclosure but they need to be ready with the financing. That's where you, Ronnie come in!!!

CMA Summary Report

RESIDENTIAL - Sold

ADDRESS	MLS #	Area	Price	HtdLvArSF	DOM	LP	SP
137 Faris Drive	52110	Jarvisburg to Poplar Br.	$95,000	1208	45	$105,000	$95,000
105 The Oaks	51680	Manteo-S. of Airport Road	$165,000	988	38	$170,000	$165,000
52632 Piney Ridge Road	51291	Frisco Oceanside	$171,000	1456	94	$189,500	$171,000
130 Lee Court	51533	Colington Harbour	$210,000	950	48	$219,900	$210,000
26017 Galleon Drive	51404	Salvo Oceanside	$230,000	960	77	$230,900	$230,000
504 Wingina Avenue	51745	Manteo-S. of Airport Road	$270,600	1770	34	$269,900	$270,600
129 East Woodlands Drive	50829	Manteo-S. of Airport Road	$300,000	2010	70	$309,750	$300,000
203 W Bridge Lane	51553	Nags Head Westside	$342,000	1780	35	$359,900	$342,000
83 Poteskeet Trail	51838	Southern Shores Westside	$385,000	2350	66	$395,900	$385,000
105 Ruddy Duck Lane	51239	Duck Westside	$525,000	2550	20	$599,900	$525,000
765 Voyager Road	49008	Corolla Oceanside	$1,625,000	5690	216	$1,699,000	$1,625,000
Total Listings					Avg	Avg	Avg
11					67	$413,604	$392,600

RESIDENTIAL Summary Statistics
	High	Low	Average	Median
LP:	$1,699,000	$105,000	$413,604	$269,900
SP:	$1,625,000	$95,000	$392,600	$270,600

This is good information - and thanks for the plug Pat.  Based on my research for the OBXforeclosures.info site, many of the properties that make it to foreclosure in Dare County are purchased back by the lenders.  In many cases - they are the only ones that show up on the courthouse steps.  Those properties are then put back into the MLS and listed by Realtors. 

Dare County FHA Limits to increase to more reasonable levels

On November 13, 2007, Dare County will have a better option for primary residents to qualify for loans.  FHA is increasing their loan limits which had been at $200,160 for some time.  Now with the increased loan amounts, FHA offers a real alternative to those buying a home in Dare County. 

Some of the benefits of FHA:

• Not driven by Credit Score like most conventional programs - we have had scores in the mid 500's approved
• 97% financing with great rates
• 3% down payment can be gifted to buyer

This program is not for a second home or investment property.

If you are interested in learning more about this program - please feel free to contact me.

Effective on November 13, 2007 - FHA mortgage limits will increase in:

The KILL DEVIL HILLS, NC MICROPOLITAN Area affecting the North Carolina County of DARE

#Units: Current   -  Pending

1 Unit: $200,160  - $327,750

2 Unit: $256,248  - $369,150

3 Unit: $309,744  - $448,500

4 Unit: $384,936  - $517,500

 

The above limits will become effective on November 13, 2007 and may be subject to change. To view the new limits on November 13, 2007 please visit: https://entp.hud.gov/idapp/html/hicostlook.cfm 

 

Outer Banks Foreclosures site

I have been working on a new site that provides accurate information on foreclosures in Dare County.  There have been a few articles and blog posts recently about the number of foreclosures but it is difficult to find the answers without spending a lot of time at the courthouse.  Obxforeclosures.info (.info - not .com) will focus on primary residences, second homes and investment properties using map based technology along with free email updates to subscribers.  The system was launched last night and it only includes properties that were filed after September 1, 2007.  If you have any questions or suggestions, please drop me a line.