Category — OBX News

The updated tax values of property in Corolla will not take place unitl 2013 for Currituck County, but the anticipation is that values will dramatically decrease.

County officials have been at work planning for the change in valuation.  Local experts believe that a tax burden could be passed to property owners on the mainland. There is no question that the downturn of the market since 2005 has caused property to be sold under the appraised value. Some local realtors report that some properties are being sold as much as 70 percent of its appraised value. As of right now, the Outer Banks pays about 58 percent of the property taxes in the county.

Could the tax burden shift soon?  If property valuations drop as they have been predicted to, county officials will be faced with a difficult decision about raising taxes to makeup for the shortfall.

Sterling Society Award Winners

KITTY HAWK, NC (May 26, 2010) – The Dobney Garcia Team, the Willey Lilley Team, Dave Hines, Michelle Huffman and Heather Sakers, all sales associates with Coldwell Banker Seaside Realty, have been honored as members of the company’s International Sterling Society.  This distinguished membership was awarded to the TOP 8 percent of the approximately 96,600 sales associates / representatives worldwide in the Coldwell Banker^® system.

The recipients exemplify everything that the International Sterling Society represents,” said Jim Gillespie, president and chief executive officer of Coldwell Banker Real Estate LLC. “Their extensive understanding of the real estate market on the Outer Banks and dedication to their customers truly embodies the ideals of Coldwell Banker.”     

While this was a challenging year for the real estate industry, millions of people continue to buy and sell homes based on their lifestyles and needs. “This was undoubtedly a difficult year in our industry, but people need to remember that real estate is cyclical, and positive signs over recent months signal a tipping point for the residential real estate market,” notes Gillespie.

About Coldwell Banker Seaside Realty

Founded in Kitty Hawk, NC in 1990, Coldwell Banker Seaside Realty has office locations in Kitty Hawk and Nags Head, NC. More than 50 licensed agents provide both residential and commercial buying/selling assistance in Northeastern North Carolina.  

About Coldwell Banker^®

Since 1906, the Coldwell Banker^® organization has been a premier provider of full-service residential and commercial real estate.   Coldwell Banker is the oldest national real estate brand in the United States and today has a network of nearly 97,000 agents working in more than 3,300 offices in 49 countries and territories. The Coldwell Banker brand is known for creating innovative consumer services as recently seen by being the first national real estate brand to augment its web site www.coldwellbanker.com for smart phones, the first to create an iPhone application featuring international listings and the first to fully harness the power of video in real estate listings, news and information through its Coldwell Banker On Location^SM YouTube channel.  The Coldwell Banker system is a leader in specialty markets such as resort, new homes and luxury properties through its Coldwell Banker Previews International^® marketing program.

Corolla Club & Resort

A public hearing was held regarding the new Corolla Club and Resort on Monday.

It seems that supporters of the development view the development as a means to offer new housing opportunities for visitors to the area.  Opposition to the new resort claim that the project dosen’t go with the current atmosphere of the area and seems out of place for Corolla. 

The Builder-developer, SAGA Construction, states that the development will help the area by creating jobs and providing accommodations for vacationers on the Outer Banks. 

During the public hearing, three major issues were addressed:

(1) Is the development compatible with surrounding residential areas?

(2) Should the land be protected because of its unique environmental qualities?

(3) Will Corolla neighborhoods be negatively impacted by the new development?

County Planner Ben Woody stated in the hearing that the development fit the criteria for a special-use permit and fits in with the overall plan for the community.  Before the testimony began, Sumit Gupta, principal owner and developer of SAGA, said the new development was carefully designed and would benefit Currituck County.

It was a hotly contested issue, and testimony and closing statements extended past 1 a.m.  At the end of the lengthy hearing, the commissioners, without comment, unanimously approved the developer’s application for a special use permit with some recommended changes from the planning staff.

Heather Sakers, a sales agent with Coldwell Banker Seaside Realty, has been nominated for Realtor Magazine’s “30 Under 30 promotion.”

Heather has been with Coldwell Banker Seaside Realty for a number of years and has gained a reputation as a honest person who always keeps her clients’ best interests in mind.  Her biography for nomination reads as follows:

“I strive to bring an honest and caring approach to my real estate career. Taking a huge financial loss myself and seeing family and friends lose everything in this market had a big impact on my attitude and what I considered to be important in life. Sales can be all about making money and getting ahead, but I have a sticker on my laptop from Mark 8:36 that says: ‘How do you benefit if you gain the whole world but lose your own soul in the process?’ It reminds me to treat my clients how I would want to be treated and always put others’ best interests first.” Web site: www.coldwellbankerobx.com

We are all very proud of Heather for this nomination and wish her the best of luck.  You can vote for Heather by clicking the link below…feel free to vote as many times as you wish!

http://tinyurl.com/ydyyke9

Heather Sakers - 30 Under 30

How does the current economic downturn affect the real estate market?

• It’s clear that the housing market will play a critical role in our economic recovery.  While national economic headlines seem gloomy, the residential real estate market shows several positive signs that could be signaling a tipping point.  Home inventory according to the National Association of Realtors is at 7.2 month supply, down 11.1% from a year ago, the lowest level since March 2006.   Total inventory is 3.29 million homes. 
• Because the overwhelming majority of home buying activity for most of 2009 was in distressed homes – foreclosures and short sales – the median price nationally came down.  But as inventory has leveled off, so have prices.  In fact, December saw the median home increase in price to $177,500, up 1.4 percent from a year ago.  For all of 2009, the median price was $173,200, down 11.9 percent from 2008.  This was largely because of the number of distressed homes that sold and they average for 15-20% lower than traditional homes.
• There is a consumer crisis challenge impacting housing.  Job loss – and fear of job loss – is keeping people from engaging in the process even as mortgage rates remain at near historic levels.  The hope is that the extended and expanded tax credit will help bolster the housing market,   allow home prices to stabilize and at the same time infuse some much needed strength into the national economy.
• Today, the large number of homes available for sale provides home buyers with a wide range of choices.  Interest rates remain low.  Affordability has improved in many markets.   This is the smartest time to buy a home in my 35 years in real estate.  While many might understand that, they are being influenced by the economic downturn and their decisions reflect this concern.

After a downturn in the real estate market that has lasted more than four years, the Outer Banks is showing signs of recovery.  In fact, according to the Outer Banks Association of Realtor’s Multiple Listing statistics, we have experienced three consecutive months of price increases (27% over that period). 

With interest rates still at near historic lows, high pent-up demand for purchasing homes, and a generous tax credit, further recovery is expected. Additionally, demographic trends are currently favoring resort destinations as more families seek lifestyle changes to a slower pace of life, and as baby boomers continue to retire by the millions and move to locales where they can fulfill their dream of living by the water and pursuing their outdoor recreational interests. 

Geography also favors the Outer Banks.  We are within a day’s drive of nearly 40% of the nation’s population.  And, with the construction of the mid-county bridge on the horizon, which will decrease the drive time to the northern Outer Banks by as much as an hour, we should expect demand to increase all the more.

Together with this growing demand, changes in inventory levels (supply) indicate a continued upward pressure on prices in the months and years to come.  Currently, inventory is down 22% from its peak in mid 2007.  Many buyers are recognizing that now is time to act while there is still a good selection of homes and before prices rise any further.

Specifically for Coldwell Banker Seaside Realty (CBSR), there is an expectation of continued success, with a steady gain in market share, and a continuation of their history in outperforming the market.  In 2009, the market was down 5% in volume yet CBSR was up over 5%.

“This success is due mainly to the work ethic, professionalism and market knowledge possessed by our team of Associate Brokers,” according to Sales Manager Pam Smith. “Many of our associates had their best year to date, in fact, 11 of our associates were in the top 100 in the MLS (with five in the top 50)!”

So what is working?  According to Smith, there are a few areas that have contributed to CBSR’s remarkable results and have helped them lead in the marketplace: 

• Power of the brand – Coldwell Banker continues to be the top name in real estate with a 98% brand awareness.  This positive branding is important as it gives buyers, who may not be familiar with the names of local firms, a sense of trust.  It also comes with an expectation for a higher level of service and professionalism.

• Technology has also played an important role in recent successes. Coldwell Banker Seaside Realty has harnessed the power of technology in a number of ways helping them to leverage the internet with tools like the Coldwell Banker YouTube Channel.  Coldwell Banker has even developed their own iPhone apps to make it easy for prospective buyers to find information regarding listings on the fly.

•  
  • State-of-the-art lead generation systems have also been instrumental with over 314 leads generated for their associates in 2009.

 “We take our partnership with our associates very seriously,” says President of Coldwell Banker Seaside Realty, Gordon Jones.  “This partnership works together with a staunch adherence to the guiding principles of: continual training and development to increase knowledge and enhance skills (we have the only full-time continuing training system on the Outer Banks.); a strong work ethic among our Associates; integrity, or doing what we say we will do; effective marketing both on and off line; and our determination to hire only the best sales professionals.”

So, what’s in store for 2010? According to National Association of Realtors® chief economist Lawrence Yun, we can expect: a 9.9% increase in existing home sales; a 40.2% increase in new home sales; a growing pent-up demand for housing; and, growing consumer confidence.

What is Coldwell Banker Seaside Realty predicting?  Says President Gordon Jones, “We are expecting continued improvement in the market conditions resulting in a 15% increase in both units and volume.” This, together with a solid business and marketing plan is expected to produce continual growth of market share, continued growth and improvement for each associate, and an improved result for our clients “Which after all, is what it is all about.”

Spring is in the air, and from a real estate perspective, spring traditionally means an increase in real estate activity.  Granted, the current economic climate and housing market probably do not qualify as “traditional,” but the increased activity in the Outer Banks real estate market is showing signs of spring fever.  

• According to the Outer Banks Association of Realtors there are currently 2,237 residential properties for sale, as of 3/9, there are 215 properties pending (under contract but not closed).
• Residential sales have doubled from January 2009 to January 2010.
• Pending sales increased by 21% when compared with January 2009.
• 2010 has seen 186 closings, 31% more than at this same point in 2009.
• An 11% decline in total inventory of homes.
• In 2010 the average sold price of a house is up 12.6% from the end of 2009 and 13.5% from October 2009, the last month prices declined.

"True Friends"

With low prices and affordable mortgage rates, there is no question that the current economic conditions have helped to create a tremendous opportunity for real estate investors.  This is especially true on the Outer Banks. 

With low prices and great selection, there has never been a better time to buy that second vacation home.  Investing in a second vacation home could eventually allow you to be able to pay for the home and use it as your permanent residence when you retire. 

“Buying and renting out a second home as a vacation rental property until you’re ready to move in upon retirement can significantly help offset the cost of ownership,” says Brian Sharples, CEO of HomeAway, the world’s leading online vacation rental marketplace. “The income stream, in addition to tax write-offs for maintenance and repairs, make this an attractive strategy for many people nearing retirement.”

According to HomeAway, on average $28,000 of rental income is pulled in from owning a second investment property.  With the  popularity of vacation homes increasing, it is hard to overlook this opportunity.  It is reported that about 87 percent of all travelers that have stayed in a vacation home in the past will stay in one again this year.

HomeAway suggested taking the following steps in preparation for investing in your second vacation home. 

• Consider the location and market potential – Carefully review the markets where you want to retire, and before you buy, consider the areas where consumer demand for vacation rentals is high, but inventory is low.
• Factor in tax write-offs – Talk to an accountant about the tax advantages of owning and renting out a second home. Expenses such as insurance, utilities, home maintenance and depreciation can be deducted, depending on how often you rent out the property and how many weeks you personally stay there each year.
• Advertise to attract renters – When you’re ready to rent out the property, be sure to market the availability of the vacation rental to travelers by listing it on sites like HomeAway.com or VRBO.com, which reach millions of travelers each month. A 12-month listing costs $329 – or less than $28 per month – on HomeAway.com, so the advertising pays for itself with your first booking – and the rest is pure rental income.
• Stay competitive and network with owners – Check out other similar vacation rentals in the area to determine what rates they’re charging travelers, and price your home at a competitive rate to help drive bookings. Also, be sure to talk with other owners to get their tips and advice for maximizing a second home investment.

For more information about owning a second vacation rental home, visit www.coldwellbankerobx.com or email sales@seasiderealty.com

Clarion Associates, a consulting firm from Chapel Hill, NC  was recently hired to help Currituck County rewrite their planning and zoning rules; the county will rewrite thier entire Unified Developement Ordinance. 

The first two meetings were held last week, and they gave county residents a chance to weigh in on the issues.  About 30 residents stopped by the meeting.  Attendees were given a series of 35 questions.  The questions were split into two categories, Currituck Mainland and Currituck Outer Banks.

A representative from Clarion Associates commented, “We found it very helpful, especially when you’re getting results consistently, when 80 or 90 respondents favor one preference over another.”  The main objectives for the UDO rewrite, according to Clarion Associates, is to ensure the environment is protected, agriculture remains viable, and county residents’ quality of life isn’t negatively affected.  The updates are also designed to make the county’s planning codes more user friendly.