An appraisal is an integral part of a real estate transaction, and is important for several reasons.  First, if you are financing the property, your loan amount will be based on the lower of the sales price or the appraised value.  Second, it helps determine you are paying a fair market value for your home, even if you aren’t financing the property.  Unfortunately, homes do not always appraise for the contracted price, which can create quite a sticky situation.

If you are faced with this unfortunate situation, you have 3 options:

• Negotiate with the seller to reduce the purchase price, hopefully to the appraised value
• Increase the amount of money you are putting into the down payment to cover the difference
• Cancel the contract entirely.

At Coastal Outer Banks Realty, we will work with you to tackle any issue that comes along during your real estate transaction, hopefully creating a smooth path to closing.  And we won’t rest until you are satisfied. To see the inventory of available homes in the Outer Banks, please visit our website at www.coastalouterbanks.com.

While the economy continues to show signs of improvement, you might be wondering where interest rates have gone, and if you can still get in on the historic lows. The answer is yes!  And if we follow historic trends, that should continue for the rest of the year.  For about the past four years, starting in 2010, mortgage interest rates have shown a strikingly similar pattern. This pattern has been concurrent with the highest rates occurring in January, February, and March. Mortgage rates then begin to fall around May and don’t rise again until the following January. This means the best time to get a low mortgage interest rate is typically in the late spring or early summer months to about November.

To get the most attractive financing possible, consider these options:

• Negotiate points and other fees with the lender
• Choose a 15- year mortgage instead of a 30-year.
• Lock your rate at the right time.  Talk to your lender and watch for market trends
• Improve your credit
• Put at least 20% down

At Coastal Outer Banks Realty, we will help you negotiate the best deal possible and help you find a local lender that will ensure you get the best financing available. Click here to visit our website and view available properties. 

Much of what happens in our economy depends on the general attitude of the public. If people are afraid to buy, fewer people do, which in turn has a detrimental impact on the economy. Right now, it looks like the opposite is happening as consumer confidence grows in the real estate market.  As more consumers believe that now is a great time to buy, things have started turning around for the real estate market.

Rents Will Rise

According to a Fannie Mae survey, the public expects rent prices to increase 3.7 percent in contrast to an expected 2.4 percent rise in prices of homes for sale. Generally, when rental prices grow faster than home prices, that means people are finding owning a home to be a better deal.  So how does this affect you?

• If you own a home, it’s probably safe to say that the value will begin to climb.
• If you’re looking to buy a rental property, you may be able to start charging higher rents.
• If you are thinking about buying, now is probably the time.

Looking to buy on the Outer Banks? Let us help. To see the current inventory of homes for sale on the Outer Banks go to http://www.coastalouterbanks.com.

If you’re looking to get in on a good foreclosure deal, you might want to hurry. Recent statistics from TransUnion show that the number of borrowers late 60-plus days on their mortgage is dropping. In fact, it’s dropped the last four quarters in a row.

How does this affect the availability of foreclosures? First, please understand that this data does NOT mean that foreclosures have disappeared. In fact, the rate is still high in comparison to how it was, say, 10 years ago. However, as the rate of delinquent borrowers continues to decline, you can expect three things to occur:

1. Fewer foreclosures will become available.
2. U.S. home inventory will lessen.
3. Home prices will climb.

In other words, great news for homeowners, but not so much for people who have delayed their home purchase!

 What Now?

All evidence indicates that the housing market is slowly turning around. So if you were waiting for the market to hit bottom before buying, you’ve probably missed your opportunity.  That said, with rates still at historic lows and great properties still available, now is the time to get off the fence!, For more information or to see the current inventory of Outer Banks homes for sale, please visit www.coastalouterbanks.com and get help from a knowledgeable Realtor!

Dare County has recently completed the much talked about property tax revaluation, which took effect January 1, 2013.  The last revaluation occurred in 2005, and if you’ve paid any attention to the real estate market in the last several years, you’ll understand that your property’s market value and its tax-assessed value might be vastly different. 

Effects of Revaluation

North Carolina law requires that at least once every 8 years each county re-appraise all residential and commercial properties. The purpose is to be certain that the valuations reflect fair market value. This is especially important today, as most properties will have been affected by the fluctuations in real estate values over the past several years.

The goal of revaluation is simple-- to re-establish equity among properties in the area and be certain that the tax burden is shared equally.  In the end, some taxpayers might be paying more, and some less, but it’s important to remember that this process will be revenue neutral.   Meaning, while the tax burden might move around a bit, the county can’t afford to have a big revenue short fall.

According to the Dare County website, you should expect to receive you revaluation notice early this year.  If you feel that your new assessed value is incorrect, you can appeal. To find out about that process or to learn more about this recent revaluation, contact the Dare County Property Appraisal Office at 252.475.5940.

As you have already probably heard, the federal government narrowly averted a disaster by passing a “fiscal cliff” bill on New Year’s Day. The bill, which President Obama signed the day after it passed through the legislature, has important implications for the real estate market. Here are the four highlights of the bill that may benefit all homeowners in 2013:

1. Energy Efficiency Tax Credit
   
   If you plan to make any upgrades in 2013, consider energy efficiency. You can receive a 10% percent tax credit up to $500 on such improvements to your home. Furthermore, if you failed to take advantage of the credit in 2012, you’re in luck, as it’s retroactive. Speak to your tax professional for details.
   
   
2. Mortgage Cancellation Relief
   
   If you had part of your mortgage debt forgiven by your lender (on your primary residence) you may breathe a sigh of relief. The bill extended the provision, enabling you to forego paying taxes on the amount forgiven.  For more details on this, please visit http://www.makinghomeaffordable.gov/pages/default.aspx
   
   
3. Mortgage Insurance Premium Deductions
   
   Taxpayers earning less than $110,000 a year can still deduct their mortgage insurance premiums—a much needed tax break for struggling families on tight budgets. Again, this is retroactive for 2012.
   
   
4. Leasehold Improvements
   
   If you need to perform qualified leasehold improvements on your commercial property in 2013, or did so last year, then you can still benefit from 15-year straight-line cost recovery, making things a bit easier on your bottom line.

                Every tax situation is different so please talk to a tax advisor to address your specific circumstance.

This market report covers the areas from Corolla to Hatteras Island and is for the period January 2012 - April 2012.

Real estate transactions slowed a bit in April, compared to the prior month but still above the pace of the prior year.  Through April 30th, 405 properties were sold, including 12 commerical properties and 111 lots/land.  This is an increase from the prior year of nearly 13%!  Additionally, the number of properties that went under contract have increased 3 months in a row, with 168 properties going under contract in April.  And with mortgage rates once again at record lows, May should prove to be a strong month as well.

This market report covers the areas from Corolla to Hatteras Island and is for the period January 2012 - March 2012.

Like the national market, the outer banks real estate market continues to improve.  Through March 31st, 380 properties were sold, including 10 commerical properties and 79 lots/land.  This is an increase from the prior year of nearly 14%!  In addition to the year to date numbers improving, every month continues to improve as well.  In January, 2012, a total of 97 properties were sold. February saw an increase over January of nearly 19%, jumping to 115 properties sold.  And in March, we saw a 46% increase over February, with 168 sold properties!  Properties are consistently going under contract as well, with 157 properties that went under contract in March compared to 147 in February.  And as properties are now selling, more sellers are feeling confidence that their property will sell for a reasonable price, and so the number of properties coming on the market in March improved as well.