Category Archives: Home Inspections

Outer Banks Home Buying Tips for First Time Home Buyers

first time homebuyer tips for Outer Banks Buyers

Buying your first home is a big step no matter where you decide to purchase.  Often times, there are more questions or doubts then there are answers.  Nailing down all the potential costs can be nerve racking and make your head swim.  After obtaining pre-approval for a mortgage you will have one piece of the financial puzzle but what about insurance costs, repair cost and taxes? 

Expert Help

Rest assured there are professionals here to help you every step of the way.  An Eillu Buyers Agent has walked many buyers, just like you, through the process with satisfying results.  No question is a dumb question and you deserve a truthful answer and expert advice each step along the way. 

Rent vs Buy in the Outer Banks

Renting a home or finding an affordable rental for year round living can be rather difficult in the Outer Banks.  Rental rates, even for year round rentals, tend to be more expensive here. 

Many times, homes can net more income for an owner through a weekly rental program than through a year round rental. 

Sometimes, these home are available for a longer term in the off-season, but require the renter to find other housing in season.  Not only is this inconvenient, but finding available housing during the summer months can be very daunting. 

Perhaps you have experienced this as well.  Here are some other financial reasons for home ownership.

To reap the full financial benefits of home ownership, you should have plans to stay in the home for 5 to 7 years.  This spreads out your cost of purchasing over a longer time period and allows you to build up equity through appreciation.

Pre-approval for Mortgage

Most first time buyers in the Outer Banks are not looking to buy oceanfront property due to the cost.  While millennial home buyers are reportedly skipping buying a starter house and buying a larger home with more amenities for their first purchase. 

Even so, the median value of homes in the Outer Banks is around the $400k mark.  Attractive homes priced below this can get very competitive among buyers; especially homes in the range of $200 to $300k.  All home buyers should get pre-approved prior to embarking on a home search.

Narrow the Search

Buyers usually begin their search online.  It is helpful to actually write down and rank what features and criteria that you are looking for. 

Typically, the criteria will include number of bedrooms, design or style, garage and other amenities, like a pool or hot tub, and the price range you have pre-qualified for.  This is a very personal list and all that matters is what will make you happy in your new home.  An artist, for example, may value the homes orientation, good lighting and a space that can be used as a studio.

The Outer Banks is over 100 mile long chain of Barrier Islands.  Each town or neighborhood has its own character, amenities and vibe

In addition to the Outer Banks, there are towns along the inner banks or on the mainland.  These towns are close enough to the Outer Banks for residents to work or play but typically are lower cost.  It is helpful to narrow your search to a specific location to spot new listings quickly and be able to assess it against your criteria.

If you are considering a condo, neighborhood or development with shared amenities, make sure you budget the cost of Home Owner Association (HOA) fees and consider the quality of the management.  Failure to keep adequate reserves can cause surprise assessments to future homeowners.

Due Diligence

First time home buyers should trust their Eillu Agents and other expert’s advice.  For example, one home may appear to be a perfect fit on a bright summer day but due to a low elevation could be prone to flooding. 

A professional inspection should also be a contingency to the contract and will provide peace of mind to the buyer regarding the condition of major systems.  Make sure you get the best advice during the due diligence period. 

You may have a friend that is handy around the house but that is not the same as a professional home inspector.  Do not take the cheapest option to save money.  You home is a long term commitment and a few hundred dollars spread over time will amount to pennies per day.  It could save you a lot of grief depending on what may be uncovered by the inspection. 

Taking your time to find the right house for you is important so you do not have any regrets.  Make sure you view and tour as many homes as it takes for you to be comfortable with putting an offer on the one that is right for you.

Down Payments and Reserves

First time buyers should keep some funds in reserve after closing.  Using all of ones savings for a 20% down payment rather than have to pay private mortgage insurance can leave buyers strapped when unforeseen events occur. 

In life, unforeseen events always occur.  Keep some savings to be able to repair the car or appliances without having to panic or increase your debt. 

Financing alternatives, like FHA, require a lower down payment and is a good option for first time buyers.  Investigate first time homebuyers programs and government programs for credits and lower down payment requirements that you may qualify for.

Before Closing

Refrain from making any lifestyle changes or making major purchases before closing.  Read this: for specific items not to do after applying for a mortgage

From seasoned veteran to first time home buyer, Eillu is here to help you navigate the home buying process.  With over two decades of experience in the Outer Banks market, we can help you with any questions and guide you every step of the way for a smooth buying experience.  Our exclusive buyers rebate will save you money without sacrificing service.  Schedule an appointment with Eillu today.

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Comprehensive Home Buyers Checklist Prior to Closing

 

If there are any issues discovered during your final walk through, immediately contact your agent to discuss them. Your Eillu real estate agent can advise you regarding appropriate courses of action. Depending on the severity of the issue, several courses of action can be taken. A minor item could be overlooked or you could seek financial compensation or repair by the seller. For more information on buying Outer Banks Real Estate or to learn more about the Outer Banks in general, please contact us and check out our blog. We are here to help you make your dreams come true.

OBX relocation guide


Final Walk Through Checklist for Home Buyers and Home Sellers

Final Walkthrough Checklist for Home Buyers and Home Sellers

Home Buyers Checklist and Preparation before Closing

The final walk through for home buyers is the last chance to verify the condition of the property and verify that any repair work agreed upon has been completed.  The final walk through typically occurs just before closing.  Just because you are excited about closing on the property do not rush through the walk through.  Pay careful attention to the details to make sure you don’t suffer any surprises once the home is yours. 

We recommend to our buyers to bring this checklist, a note pad, and a camera or your smart phone.  You should also bring a copy of the sales contract, home inspection report and the seller’s disclosure form to carefully check off each item on the list.  You may also want to bring an electrical tester to check the outlets.  No matter how pressed for time, it is never a good idea to pass on performing the final walkthrough.  This is especially true if the house has been vacant for any amount of time or if there has been any severe weather since you last saw the home.

When you first arrive at the house, start the clothes washer, dryer and dishwasher through a cycle.  Continue with the checklist and verify the appliances completed the cycle and that there are no leaks.

 

 

Buyers Checklist Prior to Closing

 

 

 

Have all agreed upon repairs been made?

 

 

 

Have all the repairs required by the sales agreement been made?

Yes

No

 

Are all bills for repairs and applicable warranties given to you?

Yes

No

 

 

 

 

 

Notes

 

 

 

 

 

 

 

Are items purchased with the house where they are supposed to be?

 

 

 

Drapes, blinds or window treatments

Yes

No

 

Appliances (washer/dryer, refrigerator, ice maker, etc.)

Yes

No

 

Lighting

Yes

No

 

Furnishings

Yes

No

 

Hot tub or sauna

Yes

No

 

Play structures

Yes

No

 

Remote control devices for blinds, ceiling fans, alarms, garage doors

Yes

No

 

Owner’s manuals for appliances and home systems (HVAC, fireplace units, alarm systems, etc.)

Yes

No

 

Other:

Yes

No

 

 

 

 

 

Notes

 

 

 

 

 

 

 

Check window and doors

 

 

 

Do all the doors open and close properly?

Yes

No

 

Do all the windows open and close properly?

Yes

No

 

Do the windows latch/lock?

Yes

No

 

Are any windows missing screens?

Yes

No

 

Are there any missing storm windows?

Yes

No

 

Is there condensation in double-panned windows?

Yes

No

 

Are there any broken windows?

Yes

No

 

Do you have keys for all the doors?

Yes

No

 

 

 

 

 

Notes:

 

 

 

 

 

 

 

Check for mold and water damage

 

 

 

Do the windows have signs of mold or rot?

Yes

No

 

Any signs of mold or water damage under the kitchen sink?

Yes

No

 

Any signs of mold or water damage in the bathroom?

Yes

No

 

Any signs of mold or water damage around the refrigerator area?

Yes

No

 

Any signs of mold or water damage around the washer/dryer area?

Yes

No

 

Any signs of mold or water damage around the water heater?

Yes

No

 

 

 

 

 

Notes:

 

 

 

 

 

 

 

Check appliances and systems

 

 

 

Did dishwasher complete its cycle?

Yes

No

 

Does the thermostat work?

Yes

No

 

Test the A/C.  Does the system blow cool air?

Yes

No

 

Test the heat. Does it get hot?

Yes

No

 

Switch on overhead fans. Do they work?

Yes

No

 

Test the water heater. Is the water from faucets hot?

Yes

No

 

Does the doorbell work?

Yes

No

 

Does the alarm work?

Yes

No

 

Does the intercom work?

Yes

No

 

Does the garage door open and close smoothly and quietly?

Yes

No

 

Does the washer work?

Yes

No

 

Does the dryer work?

Yes

No

 

Does the stove work (check all burners and oven)?

Yes

No

 

Does the built-in microwave oven work?

Yes

No

 

Does the damper in the fireplace work?

Yes

No

 

Does the gas come on in the gas fireplace?

Yes

No

 

Does the fan work in the gas fireplace?

Yes

No

 

Does the garbage disposal work?

Yes

No

 

Do all the exhaust fans (bath and kitchen) work?

Yes

No

 

Do the smoke alarms work?

Yes

No

 

 

 

 

 

Notes:

 

 

 

 

 

 

 

Check interior floors, walls, and ceilings

 

 

 

Are there any water stains on the ceiling (especially below bathrooms)?

Yes

No

 

Have any walls been damaged by movers?

Yes

No

 

Are handrails in stairways secured?

Yes

No

 

Have floors been damaged by movers or pets?

Yes

No

 

 

 

 

 

Notes:

 

 

 

 

 

 

 

Check for leaks and plumbing problems

 

 

 

Flush all toilets. Do they run, empty slowly, or leak?

Yes

No

 

Check all faucets. Do they leak?

Yes

No

 

Fill the sinks. Do they drain properly?

Yes

No

 

Fill the tubs. Do they drain properly?

Yes

No

 

Do the overflows on the tubs work?

Yes

No

 

Do the tub jets work? (spa tubs only)?

Yes

No

 

Turn on all showers. Do they drain properly?

Yes

No

 

Look under sinks. Are there any leaks?

Yes

No

 

Check the basement. Look at the floor, walls, and any exposed plumbing. Are there signs of leaks?

Yes

No

 

 

 

 

 

Notes:

 

 

 

 

 

 

 

Check electric

 

 

 

Turn on all lights. Do they work?

Yes

No

 

Check plate covers. Are they damaged or missing?

Yes

No

 

Check the kitchen and bathroom outlets. Are there GFCI outlets next to the sinks and other water sources?

Yes

No

 

Inspect the circuit breaker box. Are all the circuits labeled?

Yes

No

 

 

 

 

 

Notes:

 

 

 

 

 

 

 

Check exterior

 

 

 

Is the landscape as you expected it? Any shrubs or trees missing?

Yes

No

 

Turn on the sprinklers. Do they work?

Yes

No

 

Check roof for missing shingles?

Yes

No

 

Is the siding in the expected condition?

Yes

No

 

Are the windows in the expected condition?

Yes

No

 

Are garbage and recycling cans on the property?

Yes

No

 

Are sidewalks and driveway in expected condition?

Yes

No

 

Does exterior lighting work?

Yes

No

 

Are downspouts clear of debris?

Yes

No

 

Is the pool and Hot Tub in working condition?

Yes

No

 

Is the outside shower and all outside faucets in working condition?

Yes

No

 

Are outside outlets GFCI protected and working?

Yes

No

 

 

 

 

 

Notes:

 

 

 

 

 

 

 

Check attic and other storage places

 

 

 

Is it empty? Are there any hazardous materials?

Yes

No

 

Do you see signs of pests?

Yes

No

 

Is the insulation compressed, torn or compromised?

Yes

No

 

 

 

 

 

Notes:

 

 

 

 

 

 

 

Check for cleanliness

 

 

 

Is the property clean overall?

Yes

No

 

Is all personal property not included in the sale removed?

Yes

No

 

Are there signs of pest infestations?

Yes

No

 

Is all debris removed?

Yes

No

 

 

 

 

 

Notes:

 

 

 

 

 

 

Home Sellers Checklist and Preparation before Closing

Many times home buyers and home sellers never get a chance to meet.  Sellers can facilitate a smooth closing by having the following checklist of items taken care of in advance of closing.  A good rule of thumb is to leave the home in the same condition you would want if you were moving in.  Leave the items out on the kitchen counter so the buyers will see it when they perform the final walk-through before closing.

 

 

Sellers Checklist Prior to Closing

 

Manuals, operating instructions and warranty: Leave manuals for appliances and mechanicals like the HVAC system on the kitchen counter for the seller to find.

 

 

 

Include security alarm codes and manuals

 

 

 

Include keys to the house and any outbuildings

 

 

 

Include remotes for garage doors, fans, blinds etc.

 

 

 

Window screens: If screens aren’t in the windows, leave a note indicating where they are.

 

 

 

Light bulbs: Replace any burned out light bulbs in the house.

 

 

 

Batteries: Verify batteries in smoke detector are still working or replace with fresh batteries.

 

 

 

Forwarding address and phone number: Even if you’ve submitted your change of address form to the post office, provide it to the buyer in case they need to forward mail to you or call you with questions.

 

 

 

Clean: Leave your home clean for the buyers and remove all trash.

 

 

 

Paint for touch-ups: It’s a thoughtful gesture to leave any paint cans marked with the rooms where the paint was used. The buyer can then do touch-ups later on if needed.

 

 

 

Service Providers:  Leave a list of service providers used at the home for the buyers to reference.

If there are any issues discovered during your final walk through, immediately contact your agent to discuss them.  Your Eillu real estate agent can advise you regarding appropriate courses of action.   Depending on the severity of the issue, several courses of action can be taken.  A minor item could be overlooked or you could seek financial compensation or repair by the seller.

If a major item or more costly item is revealed then your agent will contact the seller agent.  Closing could be postponed in order to investigate the issue or financial compensation from seller to buyer could be negotiated.  Keep in mind that the seller could refuse and you also have the option to walk away from the deal. 

Immediately communicating any problems you detect will make sure you’re appropriately compensated for any uncompleted repairs previously agreed upon or recent damage that may have occurred when the previous owners were moving out.

OBX relocation guide


Selling Your Outer Banks Home? Be Prepared for How Much it Costs

cost to sell OBX home

When it comes time to sell your home, many owners only imagine the dollars lining their pocket.  While Outer Banks home sales have had a good year so far, it pays to be prepared for how much it may cost and set your expectations from the beginning.

Agent Fees

Traditionally, the seller pays the agent fees.  There are two sides to this coin, the listing agent and the buyer’s agent.  The going rate in the Outer Banks is typically 6%; split between the buyer’s agent and selling agent.  The average Outer Banks home is around $400k and agent’s commission could total $24,000!

At Eillu, we have a lower listing fee at 1.5% and have capped this at $15,000 for properties where the sale price is $300,000 or more.  Sellers should keep a 3% commission for the buyer’s agent to maintain your listings appeal when compared to other listings and to encourage buyer’s agents to share your listing with their buyers.  Listing with Eillu will still save you significant money.  Take the average Outer Banks home at $400k; $6,000 would be the listing agent commission (at 1.5%) plus $12,000 to the buyer’s agent.  This commission structure saves the seller $6,000.

Many times the buyer’s agent and listing agent represent different firms and have to share a portion of the commission they earn with the Brokerage Agency to cover overhead and other costs. 

Most agents do not receive a salary.  The listing agent pays upfront for all the costs to market your home.  Everything from the monthly MLS fees (multiple listing service), for sale signs, professional photographs and drone videos are paid upfront by the listing agent.  If your home does not sell then the agent is not reimbursed for his out of pocket expenses.  At Eillu, we provide additional marketing and services that some higher commission agencies do not provide. 

Closing Costs

Typically, home buyers pay more than sellers in closing costs. However, that doesn’t mean that sellers don’t pay any closing costs.  Plus, in a buyers’ market, a buyer may negotiate with the seller to pay a portion of the buyers closing costs in order to seal the deal. 

Sellers closing cost include transfer taxes.  In Dare and Currituck County the transfer tax is $1 per $100 in sale price or $4,000 for the $400k home.  Sellers should also expect to pay prorated water bills, prorated property taxes, prorated amount of HOA (home owner association fees) due, any special assessments for HOA, any outstanding invoices for repairs,  current mortgage payoff, payoff of any liens against the property, document fee for deed and lien waiver, and attorney fees.

Benefits of an Agent

Many home owners attempt to sell their home as a FSBO (For Sale by Owner) when it is a sellers’ market and believe they will save money.  The reality is actually quite different.  According to the National Association of Realtors 2016 profile the average FSBO sale prices was $185k while a home represented by an agent was $245k.  The $60,000 difference more than offsets all agent commissions. 

The listing agent does so much more than getting you more dollars from your sale.  From properly pricing your home, marketing, scheduling appointments, hosting open houses, negotiating offers and more, your agent will save you time.  The agents’ knowledge and experience will prove invaluable should any hiccup occur during the selling process or negotiation.   Your listing agent has the correct disclosure forms and process in place to make sure you comply with all legal requirements.

If you do go the FSBO route, you will have to pay the fees to list on the MLS, hire a professional photographer and drone videographer, pay for “for sale” signs, pay to list on FSBO or other websites.  You will need to prepare the marketing materials, brochures, website listing and social media postings to market your home.  Most people do not have the skills or the time to perform all the activities and tasks required to properly market their home.  A FSBO seller can’t match the reach that agents obtain through IDX (Internet Data Exchange) and syndication of listings; Eillu’s listings reach over 700 sites.

Pre-Market Expenses

Very few of us live in glass houses that are in mint condition and ready to show.  Taking the time and money to complete any small repairs will be rewarded with a quicker and higher dollar sale.  The loose door knob for a room you seldom enter may not bother you but will sure to be noted by a potential buyer or inspector. These small items can turn buyers off and may make them assume your home has not been well maintained.  Critically examine your home for any small items that need to be addressed.  Make sure any landscaping items, like removing dead trees and keeping the grass cut are also taken care of. 

Some sellers go an extra step and employ an inspector to make suggestions of any repairs that are needed.  Sellers can make the repairs and make the report available to buyers once the home is on the market.  An inspection report provided by the seller can boost buyers confidence in the condition of your home.

Your home should be spotlessly clean, polished, staged and ready before the first buyer ever walks through the door.  Most of us do not lead minimalist lives and have accumulated a lot of stuff.  While the stuff may be important to you and inspire fond memories, it will be distracting to buyers.  Family photos, travel mementos, collections and knick knacks should be removed.  Many sellers also have too much furniture as well.  For this reason, pack it up and store it offsite.  Alternatively, you can also donate or have a garage sale to dispose of unwanted items or items not needed in your next home.  This will make moving much easier.  You want to make it as easy as possible for the buyer to see the features of your home and allow them to imagine their belongings residing there.  Your listing agent can advise you with ideas to properly stage your home or you can consult with a stager or interior decorator. 

Occupied or Vacant

If you are not living in the home or it is a vacation rental, you must keep all the utilities (gas, water, electric) on to show the home and facilitate inspections.  Many vacation homes are sold with furnishings and have fewer personal mementos.  Remove any items that are not included with the sale prior to putting it on the market.  If you have already moved from the home and it is vacant but it was your primary residence, check with your insurance agent to see if you require additional coverage.

Taxes

Most of the sellers’ costs are deducted from the gains from the sale at closing.  However, if your gain from the sale is more than $250k (single) or $500k (married filing jointly) then you may need to pay capital gain taxes on the sale.  You can read more about it in our post: Don’t Let Real Estate Capital Gains Take Your Profit.  Consult with your accountant regarding your particular circumstances.  Taxes are paid the year following the sale of the real estate.

The Eillu team has decades of experience selling real estate on the Outer Banks and have insight to structure 1031 exchanges and more complicated deals.  Schedule an appointment today to learn how to maximize the profit on the sale of your home with our low real estate listing commission.

Eillu listing commission 1.5%


Things You Should Know About Your Outer Banks Real Estate Appraisal

Things you should know about OBX real estate appraisals

Most buyers and sellers are a bit nervous until the appraisal results are known.  The “moment of truth” for your real estate deal is after the appraisal is complete.  This is when you find out the appraised value of the home.  The appraised value will determine how much your lender will lend.  This is the point that can crush a deal should the appraisal be significantly lower than the agreed upon price.

Up to this point, you have an agreement with the seller for how much you are willing to pay and the seller has accepted your offer; perhaps subject to some contingencies like the home inspection and mortgage approval. 

What Happens If the Appraisal is Too Low?

Should the appraisal be significantly less than the contract price there are some things to do before giving up on the deal. 

Review the report for any errors or omissions that may impact the value.  If the Appraiser made a mistake in facts regarding the property, then his correction of the facts may bring the appraisal back to the sale price value.

Talk to the appraiser and find out why it was valued so low.  If it is due to items that are fixable then the homeowner may be willing to fix the items in order to save the deal.  The Appraiser will need to see the fixes to verify the work has been done and adjust the appraisal. 

You can also get a second appraisal.  An inexperienced Appraiser or one not familiar with the area may undervalue properties where an Appraiser with experience working in the area would not.  Make sure the new Appraiser is approved by the lending institution so the results will be recognized.  Always use a local Appraiser if at all possible to avoid potential problems.

The seller can also agree to lower the selling price or carry a second mortgage to make up the difference.  The buyer can also increase the amount of the down payment to salvage the deal. 

If no compromise can salvage the deal, then the buyer can escape from the deal based on the loan contingency clause as part of the contract to purchase. 

Protects Lender / Protects Buyer

If there is a large difference between what was agreed and the value determined by the independent non-biased appraiser, both buyer and seller have a problem.  The lender will not lend more than the property is worth.  This protects the lenders investment because they do not want to get stuck with a property worth less than what they have invested in the loan.  It also protects the buyer, who also doesn’t want to over-pay for the property.

Who Pays?

While the lender requires an appraisal, typically it is the buyer who pays for it.  An appraisal in the Outer Banks costs between $300 and $500.  While the lender may share a copy of the report with the buyer, the document belongs to the lender.  The cost of the Appraisal is listed as part of the mortgage costs at closing.

Appraisal vs Inspection vs. Assessment

An Appraiser will need access to all the nooks and crannies in the home and access to any buildings on the property to perform the appraisal.  However, it is not the same as a home inspection.  The appraisal will be looking at systems and conditions of the home to assess value.  The home inspection is assessing the working condition of the major systems in the home.  The appraiser may make a note of any item that is not functioning as this will impact the value of the home. 

In theory, the tax assessment of the home should reflect market value, but rarely does.  The tax assessor does not have access to the interior of the home and would not be able to take into consideration the interior condition or any upgrades or improvements.  In addition, assessments are conducted less frequently and are not up to date with market forces.  In Dare County, NC property assessments are conducted every 8 years.

Appraisal Methods

There are generally 3 approaches Appraisers use for evaluating real estate.  The Sales Comparison Approach, The Cost Approach and the income approach.

Sales Comparison Approach

The sales comparison approach is most frequently used for residential property.  The appraiser compares the subject property to 3 or 4 comparable properties that have recently sold near the subject property.  These comp sales are adjusted to take into consideration differences between the subject property and the comparable property to arrive at a value.  The properties are compared by considering lot size, square footage of finished and unfinished space, age of home, and any amenities like fireplaces, garages, pools etc.

Cost Approach

The cost approach is used more with new construction.  Here the Appraiser estimates the cost to replace the structure and the value of the land.

Income Approach

Rental properties can use the income approach by basing the value of the property on the amount of income earned through rentals.

Other Sources of Information

The Appraiser uses multiple sources of information to arrive at the value and to include in the final report.  County court records refer to last sale recordings and MLS provides sales information for comparables.  The Assessor may also use outside vendor databases in the assessment.

Appraisal Report Contents

  • How value was determined
  • Size and condition of property
  • Improvements made to property and materials used
  • Any serious structural problems or issues affecting value like wet basement, cracked foundation, leaking roof etc.
  • Assessment of surrounding neighborhood or area
  • Legal description of the property
  • Any easements, encroachments or environmental conditions
  • Discussion of recent market trends that may impact the value of the home
  • Comparative market analysis of similar sold properties
  • Maps, photographs, floor plans, surveys and other documentation

Best Practices for Buyer & Seller

The buyer has the right to join the appraiser at the home when he is conducting his assessment.  You should take this opportunity to join him especially if there are material facts known by you that the Appraiser may not be aware of.  This can prevent problems before they happen.

Sellers can get an Appraisal before they put the home on the market to correct any issues found, list at a reasonable price and make a smoother sale process.  The seller can provide the pre-listing appraisal to the buyers Appraiser to add more data and support the sales price.

While an Appraiser does not let dishes in the sink or uncut grass affect his professional judgement of value, people are only human and you want to create a positive first impression.  Make sure the home is spotlessly clean, both inside and out.  Make sure any small repairs are completed before the appraisal.  This should have already been done to get the home ready to go on the market.  Depending on how long that has been, there may be additional items to be addressed.

Similar to the home inspection, the Appraiser needs access to all areas of the home and property.  Make sure any clutter is removed from the home to make it as easy as possible on these professionals.

NC Appraiser Requirements

The North Carolina Appraisal Board under G.S. 93E-1-5 governs the registration, license and certificates for real estate appraisers and all appraisers must comply with the requirement to legally perform the service.  The requirements include formal education, approved appraisal instruction, continuing education requirements as well as background checks before an appraiser can be certified or licensed to work in North Carolina.  New appraisers must work as a trainee with oversight from an experienced appraiser before they can work on their own.  The Appraiser should be independent, objective and impartial and have no vested interest in the results of the appraisal.

Contact Eillu with any Dare County or Currituck County NC real estate questions or let us know the criteria for your dream home, vacation home, second home and investment property and we will provide you with properties that match. 

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The Straight Scoop on Home Inspections in the Outer Banks

Eillu real estate home inspections

Today, most people include “a satisfactory home inspection” as a contingency to any offer to purchase.  There are many benefits to a home inspection.  This “jump-out” clause gives the buyer the ability to cancel the deal if something is uncovered with the inspection report and no compromise or remedy can be agreed upon by buyer and seller.  According to Bill Loden, President of the American Society of Home Inspectors; 20 years ago only 75% of purchased homes were inspected and today it is 95%.

Eillu, highly recommends a professional home inspection, even if you are purchasing a new home.  An inspection provides an objective evaluation of the systems in the home and allows the buyer to learn how they all work together.  A home warrantee will offset the cost of future repairs, while an inspection provides the information about likely repairs and maintenance required and any potential system failure. 

Buyers must include the inspection contingency on their offer to purchase; it is not automatically part of the offer.  Once the offer is accepted, the due diligence period begins.  The inspection should be scheduled immediately so the results are available before the due diligence period ends.

Who should get an inspection?

Buyer

Unless you are an expert builder and knowledgeable about all facets of construction, you should rely on an objective evaluation of the homes major systems and structure, provided by a licensed or certified home inspector.  A home inspection provides peace of mind to a buyer that the home is in “working order” or indicates when something is amiss.  When an item or system is not in working order, the repair or credit for that item can be renegotiated with the seller.  If a mutually agreeable solution cannot be found, then the deal can be voided.  The buyer keeps their earnest deposit and will only be out the cost of the inspection.

Seller

A seller may want to get a home inspection before the home is put on the market.  This will allow the owner to repair any item revealed in the inspection or to adjust the listing price accordingly.  The report can also be provided to interested buyers to strengthen the sellers negotiating position or to increase transparency.

Types of Inspections

 General Certified Inspector

Most people are unable to assess the condition of the home in a customary walk through or open house.  A home may appear move in ready but the inspection goes a little deeper by examining the electrical systems, HVAC, ventilation, plumbing, roofing, insulation and structural integrity of the home that may not be readily apparent to the average buyer.

It is recommended the homeowner attend the inspection.  The inspector will typically discuss findings during the inspection and provide tips for maintenance or note any peculiarities.   A written report is typically provided within a few days of the inspection.  The report may suggest any repairs deemed necessary to bring the home up to current standards.  In some cases, the inspection may uncover items that are rather expensive to fix.  These may be a deal killer or used to re-open negotiation.

On the other hand, some inspectors are overly critical and point out every minor blemish in the home.  No home, not even a new home is perfect.  Minor issues that do not require immediate attention or that are cosmetic are not the purpose of the inspection and are likely noted by buyers anyway.  A long list of minor items can potentially scare buyers, especially first time buyers, whom do not have the knowledge about typical on-going maintenance required by homeownership and may cancel the deal.

An overly critical Inspector may elaborate on small items like chipped paint and superficial items without providing context to the importance and without regard to the cost to fix.  A helpful Inspector should provide context and priority.  Critical systems that require repair or impact health and safety should be emphasized; items that are small or easily fixed should be noted but with proper emphasis.

Buyers should be focused on what is important and where the risk is, if any.  Depending on market conditions, sellers can lose patience for buyers who are demanding repairs and concessions for minor problems or issues with the home.  The seller can deny the buyers requests and also walk away from dealing with the difficult buyer.

Termite Inspector

Wood destroying organism inspections are usually a separate inspection and are required by the lender.  Sometimes the general inspector will have the required license or certification but typically they do not.  This important inspection checks for the current presence or previous damaged caused by wood boring insects. 

Septic Inspector

The lender may also require you to have a separate septic inspection to make sure the waste system in the home is operating properly.

Other Inspectors

In some locations, it is also common to test the well and or oil tank.  The quality and longevity of the well can be ascertained and the viability of the oil tank and confirmation that there is no leakage provides assurance to the buyer. 

A general home inspector does not cover environmental contamination, pools and spas, detached structures.  If the buyer has a specific item of concern, make sure it is brought to the inspector’s attention and included in the written contract provided by the inspection company.  You must sign the agreement before the inspection is performed.

What Does a General Inspection Cover

straight scoop on home inspectionsStructural Components (floor, walls, roofs, chimney, foundation)

Mechanical Systems (plumbing, electrical, heating/air conditioning, appliances)

The inspection will only include visible and accessible systems and components of the home.  This means the inspector is not expected to move any personal items or do any test that can be destructive to the components.  The effort to perform a thorough inspection is entirely in the inspectors hands and the subjective standard of what is accessible can vary from one inspector to the next. 

The Inspection is not an appraisal of the property value and its purpose is not to estimate the cost of repairs.

The Inspection is not a guarantee the home complies with current building codes which can be complicated and changed over time.  Older construction can be grandfathered rather than comply with changes to the codes.

An inspection is not a guarantee an item will not fail in the future.  The inspector can check to see the air conditioning unit is working but cannot tell you the efficiency or how adequately it works.

The Inspector should alert the buyer to any safety issues or concerns present in the home.  Specialist are sometimes required when mold, lead based paint or asbestos is suspected. 

Support for Appraisal

The purpose of the appraisal is to provide an estimate of the market value of the home.  The appraiser does not examine all the working systems of the home, like an inspector does.  The inspection report can help support an appraisal of an older home where all systems are working and there is no deferred maintenance. 

How to find an Inspector

Unless hired by the seller prior to putting the home on the market, the inspector works for the buyer and should have the buyers’ interest as the only concern.  Typically, the buyers pays the cost of the inspector and is responsible for hiring the inspector.

While your Realtor can recommend area Inspectors, you are not limited to selecting an inspector your Realtor recommends.  Some people believe an agent has an incentive to recommend “easy” Inspectors to make sure a deal with go through.  This short sighted approach would be short lived when issues crop up after the sale.  It is in the Agents best interest to protect client’s best interest.

The buyer should do the research to find the best inspector to protect his/her interests and to make sure you have a good rapport.  Obtaining referrals from friends, builders and lenders and follow-up on the references to find out how satisfied each was with the job performed. 

View a sample report from the inspectors under consideration to determine the level of detail you can expect and how helpful the report is.   Some Inspectors include maintenance items you will need to perform annually to keep the home in shape.

Licensure in NC

You can also refer to the North Carolina Home Inspector Licensure Board to determine an Inspectors current standing, qualifications, amount of experience, additional training and compliance with state regulations.  Other professional organizations for home inspectors include: American Society of Home Inspectors (ASHI), International Association of Home Inspectors (InterNAHI) and the National Association of Certified Home Inspectors (NACHI).

A home inspector must be licensed by the North Carolina Home Inspector Licensure Board to perform home inspections for compensation. A professional home inspector must satisfy certain education and experience requirements and pass a state licensing examination. Their inspections must be conducted in accordance with the Board’s Standards of Practice and Code of Ethics.  While there are minimum requirements for report writing, the results can vary greatly from a checklist to a full narrative report including photographs. 

The Inspector is also required to provide a written “Summary” of the inspection identifying any system or component that does not function as intended, or has tangible evidence that warrants further investigation by a specialist.

The summary may also describe any system or component that poses a safety concern. Carefully read and understand the entire home inspection report and follow-up with the inspector with any questions you may have.  The report is provided within 3 business days after the inspection.  The report is your property and the inspector may not share it with other people without your permission. 

Cost of Home Inspector

Home inspections will range in price according to the age, size and value of the home. Do not base your selection of home inspector as the “lowest cost provider”.  The saying “you get what you pay for” comes to mind and you want someone who will look out for your best interest not just check the boxes. 

Typically, the average cost for a home inspection in the Outer Banks is $300 to $500. The cost will vary depending on the size of the home and the complexity of the systems to be checked. 

The buyer is typically responsible for the payment of the home inspection and any subsequent inspections.

Attend the Inspection

Usually, the inspection is performed after you have signed the purchase contract.  Make sure to schedule the inspection as soon as possible to allow adequate time for any negotiation and for repairs to be made.

You should always attend the home inspection.  The inspector will educate you about the systems in the house, how it should be maintained and what may have been neglected.

Expect to spend anywhere from 2-5 hours during the inspection. 

Deal Killers

Once you have the inspection done, what now?  Make sure your read and thoroughly understand the report and the implications.  Contact the inspector for any item that you do not understand.

Consider hiring tradesmen to provide estimates for repairs needed and noted in the report.

Are there any deal breakers in the report?  That depends on you.  One person who hears, HVAC needs replacement may run, while another with a brother-in-law in the business may embrace it.  Another person who hears mold may run away due to allergies in the family.  This person may feel that no level of fix or repair will ease their mind. 

Any negative results from the inspection can be satisfactory resolved in several ways.  The seller may repair the item before closing or the seller can reduce the price or provide a credit for the repairs.

Neither seller nor buyer must do anything.  They can walk away from the deal. 

A home inspector does not advise a customer whether or not to buy a house. It’s his or her job to provide all the available information so that home buyers can make an informed decision that is right for them and their circumstances

For more information on buying Outer Banks Real Estate, or selling Outer Banks Real Estate or to learn more about the Outer Banks in general, please check out our blog.

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How to Boost Sale of Your Home with a Home Warrantee

Eillu-home-warrantees-help-sell-homeNo doubt about it, home warrantees offer peace of mind for home buyers, home sellers and even the real estate agents.  Buying and selling a home can be the most stressful time period in a person’s life.  It is full of decisions and many people will second guess themselves or have doubts regarding making the best decision.  A home warrantee shifts the risk of future repairs to the warrantee company so everyone sleeps better.

Sell Faster, for More Money

A study from the Service Contract Industry Council (SCIC), reported homes sell for $2300 more and 16% faster with a system and appliance warrantee than homes without a warrantee.

A property with a home warrantee is more attractive than a similar property without one.  Even after the most thorough home inspections, there is no guarantee that issues won’t appear after closing.  Many times, buyers are using much, if not all, their savings to purchase the home.  The fear that something may break or need repair after they move in can lead to some sleepless nights. 

Home sellers and real estate agents who purchase a home warrantee for a property for sale will attract more buyers by eliminating one potential objection.  Many times, the warrantee also covers the seller while the home is listed and available for sale; providing valuable protection without delays in the sale process.  Buyers who may be stretching funds to purchase a home tend not to consider diverting funds to purchase the warrantee on a subject property, but should.  Especially first time buyers, who are accustomed to calling on a landlord for repairs will have a trusted source for repairs and minimal out of pocket expense.

Competitive Edge

A home warrantee provides a competitive edge in a buyers’ market, especially when competing homes are similar in age, construction and amenities.  Homes under warrantee suggest the homeowners care about the home and have maintained it well during their ownership.

Ideal for Older Homes

Many buyers prefer older or historical homes but fear the potential repair costs.  Warrantees can be purchased for homes of any age and will cover the appliances and systems as long as they were in working order when the warrantee is purchased.  This will eliminate the fear buyers may have about a home with older appliances and systems.  An older home with a warrantee can compete with new construction with the same reassurance.  Some buyers prefer the mature trees and other aesthetics of established neighborhoods above the sterility of new construction.

Negotiation Edge

Sellers may want to offer a home warrantee to cinch the deal when negotiating.  If a buyer is looking for a price concession due to the age of the appliances or concerns from a home inspections, offering a home warrantee will go far to calm the fear.  Sellers can purchasing a home warrantee for a few hundred dollars versus thousands asked by the buyers in reduced purchase price.

Protects, Buyers, Sellers, Realtors, and Other Parties

A home warrantee can be purchased by the buyers, sellers or even the real estate agent to help a transaction move smoothly and quickly for a higher sale price.  It provides protection from surprise breakdowns before, during and after the sale.  It can even aid in mortgage approval by reducing the risk the buyer may face unknown repair costs.  This gives all parties peace of mind. 

If a system or appliance breaks, none of the parties have to suffer a large out of pocket cost and only a small deductible needs to be paid.  A home warrantee can avoid disputes regarding seller disclosures.  Should something break after the sale when a warrantee is in place, there is no reason to litigate to recover the costs as the home warrantee will cover the majority of the expenses.

Let Eillu help you sell your home faster for more money.  Home warrantees are only one of the tools is our tool box.  Talk to an agent today to get a custom market evaluation and view our sales presentation.  Yes, you can expect more with Eillu!

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How To Prepare Your Outer Banks Home For Fall

street-trees-autumn

Fall is finally here and it’s time to get your house prepared for the cooler months ahead. Taking care of your home’s routine maintenance now, will prevent stress in the future. Many tasks are easier to tackle while the weather is still nice out and it gives you time to fix any repairs before it becomes a major problem. It’s very important to  winterize all areas of your home including, the exterior, interior, yard, and the deck. Often people wait too long  before starting their home maintenance checklists, but preparing ahead of time offers many advantages. Follow the checklist below to prevent costly repairs and prepare your home for the winter months.

 

Exterior Maintenance

  • Check the foundation for cracks; caulk around the areas where pipes or wires enter your home
  • Inspect exterior walls for peeling paint
  • Install storm doors and windows. Remove screens and store in a dry area
  • Weather-strip your garage door, making a tight seal between the garage and ground
  • Have a licensed roofing professional inspect the condition of your roof
  • Check your driveway for cracks and repair any damage
  • Clean gutters and downspouts, flush them with water, and inspect join and tighten brackets
  • Examine your pool cover and replace if damaged

Interior Maintenance

  • Check for sealing and insulation on all windows and doors, apply weather stripping if needed
  • Check that the attic is insulated and ventilated
  • Have a licensed heating contractor inspect your heating system
  • Test and change batteries in your smoke and carbon monoxide detectors
  • Vacuum internal parts of air conditioners and remove units from windows
  • Clean your humidifiers frequently to avoid bacteria and spore growth
  • Change the direction of your ceiling fan to create and upward draft
  • Examine your fireplace insert’s gasket for a tight seal

Porch & Deck

  • Check the supports, stairs and railing porches and decks
  • Empty soil from pots and clean
  • Clean and store all outside furniture

Yard & Garden

  • Clean and store all summer garden equipment
  • Rake the lawn and reseed patchy areas
  • Trim any limbs and remove trees that could interfere with powerlines
  • Fertilize the lawn to have healthy grass in the spring
  • Drain garden hoses and store inside
  • Shut off outdoor water valves and irrigation systems
  • Store winter equipment in an accessible area
  • Drain gas-operated yard equipment and store in dry area

Remember to follow these fall maintenance tips listed above to protect your OBX real estate so you can begin to enjoy your Outer Banks vacation home as soon as warm air of spring arrives. No one wants to incur higher costs for their vacation with preventable repairs. Eillu has an experienced team prepared to help with your Outer Banks property purchase or sale. Contact us to learn about buying or selling your Outer Banks home!

 


Fundamental Steps to Buy a Home

Fundamental-Steps-to-Buy-a-Home If you are new to the home buying process, there are many steps you can take to lead to an easier experience. Check out these tips to learn about what needs to be done to purchase a house!

  • Begin researching houses and be aware of the type of home you are looking for. Learn about a variety of neighborhoods, understand the market, and carefully see what will best meet your needs in a house within the area in which you are interested in living.
  • Decide on a budget and be familiar with home prices in the area you are looking to move. Know of all of the expenses ahead of time. The new mortgage is the main expense, along with costs such as insurance and property taxes. Once you know what down payment you can afford to put down to purchase a home, you can determine the price range for homes you can purchase. Typically, lenders will require you to put a 20% down payment on a house. This can vary based on the type of the loan and your personal financial situation. In resort markets like the Outer Banks, if you are buying an investment home, some lenders will also consider that as an additional income and that may qualify you for a higher loan amount. Allow some cushion for unexpected expenses or repairs.
  • Find the best real estate agent for your needs. Real estate agents have a lot of expertise on the industry and the process for purchasing a home. Find the real estate agent that has knowledge about the neighborhoods in which you are looking for your future home. Exclusive buyer’s agents can also help fairly value the houses you find.
  • Get pre-qualified and then pre-approved for a loan. By doing this in advance, you can learn about the best price range for your future house and about how the financing process works. During pre-qualification, you will inform a lender about your financial situation and learn about what type of mortgage is within your range. During pre-approval, a mortgage application plus a fee are involved. You will receive more information and an approval letter to be certain the mortgage is affordable.
  • Make the offer once you have chosen the best house for you. The real estate agent you are working with will help you with making the offer. This is a step toward reaching a price accepted by both the buyer and seller.
  • Apply to get a mortgage. After you enter the contract to purchase a home, you should confirm a loan for the house.
  • Look into insurance. Homeowners insurance is required and is an important protection for your house for any covered loss. Flood insurance may also be required depending on where your home is located. In the Outer Banks, wind & hail is not typically included in a homeowners policy and must be purchased separately.
  • Have the home inspected. A home inspection can be set up by a real estate agent, and the inspector will inform you if there is any damage to the house that should be repaired.
  • Get an appraisal. If you are borrowing funds from a lender, they will order an appraisal to make sure the home you are purchasing is valued equal to or more than the purchase price. An appraiser is an external member to the real estate contract and will provide a fair and accurate price after evaluating the house’s value.
  • Close on the house. In the final part of this process, you will close on the house. This involves finalizing the loan, paperwork, and current payment to the seller. Make sure to use an attorney or title company to seek proper legal guidance and to review all of the paperwork and recordation of the deed.

Eillu has an experienced team prepared to help with your Outer Banks property purchase. Contact us to learn about buying an Outer Banks home!

Fundamental-Steps-to-Buy-a-Home


The Truth About Short Sales, Foreclosures and Traditional Sales

The-Truth-About-Short Sales-Foreclosures-and-Traditional-SalesSince the real estate downturn in 2006 or there about; more people are aware of foreclosures.  Due to the historically high number of people affected by foreclosures, the stigma associated with foreclosures has been greatly reduced.  As a buyer, what are the advantages and disadvantages of buying a home within the short sale or foreclosure process?

Read on to learn the definition of each about the pros and cons of purchasing a home in one of these categories.

Short Sales

In a short sale, the home is worth less (current market value) than the amount of debt against it; sometimes this is called “upside down”.  A seller will usually try to short sell the home to a third party with the creditors agreeing to a lower price.  The creditors are involved in the process; from setting the price to qualifying potential buyers. 

Alternatively, some sellers will “give back” the property to the lenders as a “deed in lieu of foreclosure”.  In this case, if the lender accepts, the lender markets the property for sale. 

In the simplest short sale case, there is only a first mortgage on the home and no other liens.  In this scenario, the seller only needs to get the mortgagee to agree to accept less than what is owed on the property.  The short sale agreement can also include a release from any deficiency judgments.  A deficiency judgment is the amount creditors were owed versus what was paid to sell the property short. 

The matter can become even more complicated as a seller can also be taxed on the amount of forgiven debt by the IRS.  That’s because the amount of debt that is forgiven is seen as income by the IRS.  Nothing like kicking someone when they are already down?  There was some relief from this taxation during the height of the crisis but every situation is different and the legalities can be quite complicated.

As you can see, the more creditors involved (and even mortgage insurers) who have an interest in the deal the more complicated it can get for the seller and ultimately the prospective buyer.  It’s no simple matter to get all the players to agree to the terms to allow the deal to go through. 

Short sales are purchased “as is.” In an “as is” sale, the seller will provide legal disclosures but will not be responsible for repairs.  Sometimes, it can be difficult to get access to the property to make inspections or obtain estimates for repairs.  This can greatly increase the buyers risk.

Short sales are less detrimental to a seller’s credit than a foreclosure. A seller who has short sold a property has a much shorter waiting period for a subsequent loan than the borrower who lets a property go to foreclosure. Some borrowers can qualify for a new loan a year after a short sale.

For buyers of a short sale, be prepared for a longer purchase process then under a conventional sale.  Some deals can take months to close compared to about 30 days for a traditional sale.  The more creditors involved the more difficult the process can (and will) become.  Frequently, after months of jumping through hoops, the deal ends up dying a painful death.  Unfortunately, this time delay has tied up the buyers funds and not allowed the buyer to pursue alternative deals.

So, what is the major advantage of purchasing a short sale?  Purchasing a property for a below market price or a perceived below market price.  Unless you are an expert in evaluating real estate these deals can be very risky.  Many times when the seller is suffering financial hardship maintenance on the property is the first thing to be cut which can also lead to costly repairs or other surprises.

Foreclosures

Most people think of foreclosures as a single status.  In fact, it is a process the lender or other creditors go through to foreclose or terminate the equitable right of redemption and take both legal and equitable title to the property. Each state’s laws can vary in the timing and the specific notices required for the foreclosure process. 

The foreclosure process is initiated once the homeowner defaults on the mortgage.  While the process can legally start after 1 missed payment; typically, lenders will wait for more than one payment to be missed.  A homeowner may default due to a loss of a job, medical conditions, divorce and a multitude of personal reasons. 

Pre-foreclosure

During the pre-foreclosure, the owner is in default and has likely received notices from the lender.  Depending on the state and the number of properties in foreclosure, the pre-foreclosure status can last a year or more.  The seller at this point can attempt to obtain alternate financing, sell the house, file for bankruptcy or attempt a short sale to avoid foreclosure.  Obviously, if the market value is greater than what is owed on the property, the seller will have more alternatives to deal with the situation.

Foreclosure Auction

Some states have a judicial foreclosure process and others use a non-judicial process.  The differences are the legal procedure used in each state.  Generally, if the default is not resolved, a summary judgement is obtained by the lender and there is a Sheriff sale or Auction.  Even after the auction, the home may not be “foreclosed”. 

In most states, the seller has a stated redemption period.  The redemption period is the amount of time where the “owner” can still pay all that is owed (plus fees and cost) to redeem the property and continue his ownership.  This period of time varies greatly from 10 days to two years depending on the state.  In NC, there is a twist to the auction where for up to 10 days a higher “upset bid” can be entered to become the new “winner”.  The process continues for another 10 days until no new upset bid is entered.

Real Estate Owned

If there are no 3rd party bids at auction, then the lender will obtain title (once the redemption period expires) and can sell the property.  When a lender sells a property this way, it is known as REO or Real Estate Owned. 

Like the short sale process, the foreclosure process can also become very complicated the more players who are involved.  These other interests can be 2nd mortgagees, IRS liens, Municipal liens, Home Owner Association liens, mechanic or utility service liens.  The controlling factor and procedure used to clear these liens depends on the priority of the lien.  Most commonly, priority is determined by the date of the lien.  However, municipal liens and IRS usually have a higher priority and can come before the first mortgage.

Advantages & Disadvantages

The advantages, disadvantages and risks incurred by buying a foreclosure depends on what stage of the process and how complicated the liens and priority status is. 

Pre-foreclosure

A pre-foreclosure sale can resemble a traditional sale by the owner to a buyer.  This usually occurs when the market value is greater than what is owned on the property.  The lender does not need to be involved and the proceeds from the sale will pay off the debt on the property.  This benefits the seller with less damage to his credit rating and eliminating having to go through the foreclosure process.  Typically, if the buyer and seller can agree on terms; it can be a quick and painless process for both parties.

Auction

Purchasing foreclosures at auction is not for the timid.  Make sure you understand all the legalities in your state of purchase.  Make sure you have a legal team that is well versed in foreclosure law for the state in question.  Also, make sure you are able to research the property to discover all junior, senior liens or encumbrances.  Making a mistake and purchasing at auction when a senior lien holder can wipe out your interest is not the way to make money in real estate.  A small mistake can cost you big if you don’t know what you are doing.  As a bidder at a foreclosure auction, there is no inspection and in most cases no way to even view the inside of the property before bidding. 

REO

Purchasing REO from the lender lowers the risks for obtaining clear title.  Typically, the lender does not market the property until the redemption period has expired and they have ownership.  However, your title can only be as good as the lenders title.  It is important to make sure you can get clear fee simple title.  Increasingly, due to the number of foreclosures, lenders are packaging the REO’s and selling them in bulk to investors. 

In both the short sale and foreclosure purchase scenarios, the prime motivator is purchasing real estate at below market value.  The amount of discount is going to vary widely from market to market.  It will also be influenced by the number of foreclosures in that geographic area.  The actual amount of profit will depend on cost to repair and remarket the property. 

The major disadvantage is the amount of time and bureaucracy required to purchase a foreclosure or short sale and the opportunity cost of other deals not pursued as a result. 

In most cases, you will need cash or an alternative source of funds to purchase at the auction.  While you can re-finance the purchase of a foreclosure after obtaining it, most lenders will not provide the funds for purchase.

Traditional Sales

In a traditional real estate sale, the buyer and the seller agree on the price and terms for the purchase of the property. There is typically more certainty and more complete disclosures and therefore less risk involved in a traditional sale. Typically, a real estate agent will be involved and you can always hire an agent of your choice to protect your interest.  A traditional sale allows for more options and contingencies like the sale of a current home or obtaining a mortgage.

It is important to be well-informed about the real estate market and about different types of real estate sales. For more information on purchasing property in the Outer Banks, contact Eillu. We are prepared to help you with your Outer Banks real estate questions!

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Yes, You Can Expect More With Eillu!