Category Archives: Sellers Info

November 2017 Outer Banks Real Estate Outlook and Current Statistics

November 2017 OBX Real Estate Outlook and Current Statistics

The Outer Banks Association of Realtors released the November 2017 MLS Statistical Report – you can get the full report here.

Real estate sales in the Outer Banks for November 2017 were 206 units; an increase compared to Nov 2016 from 167 units.

Under contract units decreased by 6% to 390 compared to 413 in October 2017. Compared to Nov 2016 units under contract are up by 5%.

The average home price increased by 4% compared to Nov 2016. The average single family home in the Outer Banks is $401,024. Over the same time period, the average price of condos has fallen by 1%.

The median single family home price is $325,000, this has increased by 5% in 2017 compared to Nov 2016. The median price of condos is $287,440, they have increased by 28% in from Nov 2016.

Some highlights from this month’s report follows.

Overall Market

Residential inventory decreased by 5% in November with lots/land down by 10% and commercial inventory down by 24%. The inventory trend has continued downward for most of this past year.

Active residential inventory is 1452 units. The quantity sold increased by 12% compared to Nov 2016; with volume sold up by 16%. The median sale price increased by 6%.

Lots and land quantity sold increased by 13% from last year. The average sale price for lots fell by 14% while the median price increased by 3%. Land inventory is down by 10% compared to last year.

Commercial unit sales are down by 23%. Only 20 commercial units were sold compared to 26 last year. The average and median sale prices have little relevance with such a small sample and appear skewed from a large sale last year. Commercial inventory is down 24% compared to last year with only 65 units active on the market compared to 85 units last year.

Distressed Property

Distressed sales remain nearly the same as November 2016 with 102 units sold. There were 28 residential short sale units sold, which is exactly the same as this time last year. Average price for short sales fell by 4% but the median price increased by 8% from one year ago.

Sales for bank owned properties increased by 1% from 73 units to 74 this year. The average sale price for Bank Owned property fell by 2% compared to last year; while the median decreased by 4%.

Overall, the quantity of distressed property sold increased by 1% compared to the same period in 2016. The average price decreased by 3% and the median increased by 6%. Total volume sold is up by 1% with 102 units compared to 101 last year.

The effect distressed real estate will have on the overall Outer Banks market will continue to diminish as foreclosure and short sale inventory is depleted and the market returns to pre-recessionary levels of distressed real estate.

Residential

Single family unit sales increased by 14%, with 1563 units compared to last year 1374 units. The volume sold increased 17% with the average sale price and median sale price both increased by 3%.

Condos unit sales increased by 9% compared to last year. November condo unit sales were 179 compared to 164 a year ago. The volume sold increase by 10%. Median sale prices for condos increased by 9% compared to last year. Average sale prices are up by 1%, compared to last year. Unlike many other markets, the Outer Banks did not see an oversupply of condo construction during the boom years and current demand for condos has been strong in 2017.

Residential land unit sales increased by 11% in November. The average sale price fell by 7% while the median price was up slightly at 1% compared to last year.

Overall Days on the Market for the all residential properties is down by 44% in November. Days on the market is 143 versus 254. Upon closer inspection, for the 1062 units sold since Jan. 2017 the average days on the market is a startling 53 days. Outer Banks properties are selling much faster; especially new inventory.

New Construction building permits are down by 14% with 250 units compared to 292 last year. Building permit value decreased by 5%.

Outer Banks Town Statistics

The November 2017 median sale prices for the towns in the Outer Banks and the percent change compared to 2016 appear below:

Nov 2017 Median price change for OBX towns

nov 2017 median price change obx towns table

Corolla experienced the largest percentage gain of 12% compared to 2016. The next highest YTD increase was Hatteras Island at 11%.

The Outer Banks real estate market is on track for a solid sales year. If you have been thinking about an Outer Banks vacation home purchase, second home purchase or permanent home, now is the time to act. Purchasing power will decrease once the anticipated mortgage rates increase. Smart buyers and investors will lock in rates now before the increase. The rental market continues to be strong to provide income from the investment and enjoyment for the family for years to come. Buy now to position the home for the 2018 rental season.

Buy with Eillu and save more with our buyers rewards plan. The Outer Banks continues to be named a top beach destination every year. Beach nourishment has recently been completed for a large portion of Dare County beaches and will ensure strong future appreciation for real estate.

If you have considered selling your Outer Banks home, now may be the best time. The lower inventory levels will allow your property to be seen with less competition. The strong demand will sell your home with fewer days on the market. Our 1.5% listing commission will save you thousands of dollars!

Schedule an appointment today to find your vacation rental property, second home or investment property.

MLS Monthly Outer Banks Market Report


October 2017 Outer Banks Real Estate Market Outlook and Current Statistics

Oct 17 MLS market report - OBX in fall

Overall, single family detached home sales are up 13% and condo sales are up 12% for 2017.

The Outer Banks Association of Realtors released the October 2017 MLS Statistical Report – you can get the full report here.  This months report was delayed and did not include the same detail as the regular reports.  We expect the full report to be available for November 2017.

Real estate sales for October 2017 in the Outer Banks reached 165 units compared to 146 units for the same period in 2016.  Under contract units increased by 30% to 251 units compared to September.  

The median single family home price has increase by 2% in October; while condos have increased by 6% compared to last month. Some highlights from this month’s report follows.

Overall Market

Residential inventory decreased by 8% in October following last month’s 10% decrease; both compared to last year. The inventory trend has continued downward for the past few months. Active residential inventory is 1497 units while last year there were 1621 units.

The quantity sold increased by 11% following last month’s 11% increase; with volume sold up by 16% following the same increase for the last 2 months.

Lots and land quantity sold increased by 6% after last month’s increase of 6%. The average sale price for lots fell by 19% and while the median price increased by 4%. Land inventory is down by 11% compared to last year.

Commercial unit sales are down by 24% following last month’s decrease of 24%. Only 16 commercial units were sold compared to 21 last year. The average and median sale prices have little relevance with such a small sample and appear skewed from a large sale last year. Commercial inventory is down 14% compared to last year with only 64 units active on the market compared to 74 units last year.

Distressed Property

Due to the shortened and delayed report from OBAR, details for distressed sales were not reported.  Overall short sale inventory remained steady at 1% of the active listings. 

Residential

Single family unit sales increased by 13%, the same as reported last month, with 1275 units compared to last year 1130 units. The volume sold increased 17% with the average sale price increase by 4% and the median sale price increased by 2%.

Condos unit sales increased by 12% following last month’s 12% increase compared to last year. October condo unit sales were 151 compared to 135 a year ago. The volume sold increase by 10% following last month’s 10% increase. Median sale prices for condos increased by 5% compared to last year. Average sale prices fell by 1%, compared to last year. Unlike many other markets, the Outer Banks did not see an oversupply of condo construction during the boom years and current demand for condos has been strong in 2017.

Residential land unit sales increased by 8% in October. Considering all land, October had a 10% increase.  This follows several months of increases for lots and land sales.

The average sale price for residential land fell by 9% while the median price increased by 5% compared to last year.  Considering all land, the average sale price fell by 17% while the median price increased by 8%.

Overall Days on the Market for the all residential properties is down to 147 days compared to 162 days this time last year.   The MLS reported than DOM for lots and land sales was also dramatically lower but did not provide specific statistics for comparison.  Outer Banks properties are selling much faster; especially new inventory.

Outer Banks Town Statistics

The October 2017 median sale prices for the towns in the Outer Banks and the percent change compared to 2016 was not provided in the delayed report. 

The Outer Banks real estate market is on track for a solid sales year. OBXMLS reports 251 under contract compared to 192 units reported last month.

National Real Estate Trends

The Wall Street Journal reports purchases of newly built single-family homes rose 6.2% to a seasonally adjusted annual rate of 685k in October from the previous month. Economists had expected sales to fall 6.4% in October to a 624k annual rate so the increase was quite unexpected.  Compared to a year earlier, sales of newly constructed homes increased by 18.7%.  October’s increase for new home sales follows Septembers 14.2% increase.  Click here to view new homes available in the Outer Banks of NC.

November is almost over but the holidays are a great time to visit the Outer Banks and purchase real estate. There are wonderful community events and a small town friendly atmosphere that you won’t experience any where else.  Purchasing at the end of the year provides for some significant tax benefits and provides adequate time to prepare for the summer season.

The crowds are reduced and it is easy to view vacation rental homes or investment properties available for sale.  Even after winter weather sets in, it is warmer with the gulf stream influence and the abundant warm water that surrounds the island.  

If you are lucky, you may get to experience the magic of snow in OBX; it doesn’t last long but makes the island and beach look like something out of a fairy tale.

If you have been thinking about an Outer Banks vacation home purchase, second home purchase or permanent home, now is the time to act. Buy with Eillu and save more with our buyers rewards plan. Schedule an appointment today to find your vacation rental property, second home or investment property.

If you have considered selling your Outer Banks home, now may be the best time. The lower inventory levels will allow your property to be seen with less competition. The strong demand will sell your home with fewer days on the market. Our 1.5% listing commission will save you thousands of dollars!

Eillu free custom market analysis


September 2017 Outer Banks Real Estate Market Outlook and Current Statistics

Outer Banks Real Estate Market Outlook Sept 2017

The Outer Banks Association of Realtors released the September 2017 MLS Statistical Report – you can get the full report here.

Real estate sales for September 2017 in the Outer Banks increased slightly from August with 156 units to 158 units. This is almost the same as September 2016 sales of 159 units. Under contract units increased by 6% to 442 from August reported 419 units under contract. The average home price increased by 4% compared to 2016. The median single family home price has increase by 2% in 2017 while condos have increased by 5% in 2017. Some highlights from this month’s report follows.

Overall Market

Residential inventory decreased by 10% in September following last month’s 8% decrease both compared to last year. The inventory trend has continued downward for the past few months. Active residential inventory is 1484 units. The quantity sold increased by 11% following last month’s 11% increase; with volume sold up by 16% following the same increase last month.

Lots and land quantity sold increased by 6% after last month’s increase of 8%. The average sale price for lots fell by 191% and while the median price increased by 4%. Land inventory is down by 13% compared to last year.

Commercial unit sales are down by 24% following last month’s decrease of 20%. Only 16 commercial units were sold compared to 21 last year. The average and median sale prices have little relevance with such a small sample and appear skewed from a large sale last year. Commercial inventory is down 22% compared to last year with only 57 units active on the market compared to 73 units last year.

Distressed Property

Distressed sales increased in September and were 9% of all residential sales compared to 2% reported last month. There were 22 residential short sale units sold, compared to 24 short sales this time last year; an 8% change from one year ago. The average sale price decreased by 12%. The median sale price increased by 6%.

Sales for bank owned properties increased by 11% from 57 units to 63 units compared to last year. The average sale price for Bank Owned property fell by 8% compared to last year; while the median decreased by 1%.

Overall, the quantity of distressed property sold increased by 5% compared to the same period in 2016. The average price decreased by 11% and the median increased by 3%. Total volume sold is down by 8% compared to last year.

The effect distressed real estate will have on the overall Outer Banks market will continue to diminish as foreclosure and short sale inventory is depleted and the market returns to pre-recessionary levels of distressed real estate.

Residential

Single family unit sales increased by 13% slightly higher than the 12% reported last month, with 1275 units compared to last year 1130 units. The volume sold increased 17% with the average sale price increase by 4% and the median sale price increased by 2%.

Condos unit sales increased by 12% following last month’s 16% increase compared to last year. September condo unit sales were 151 compared to 135 a year ago. The volume sold increase by 10% following last month’s 14% increase. Median sale prices for condos increased by 5% compared to last year. Average sale prices fell by 1%, compared to last year. Unlike many other markets, the Outer Banks did not see an oversupply of condo construction during the boom years and current demand for condos has been strong in 2017.

Residential land unit sales increased by 3% in September. This follows the 5% YOY increase reported in August and a 19% increase reported in July. The average sale price fell by 11% while the median price was unchanged compared to last year.

Overall Days on the Market for the all residential properties is down by 39% in September following the reported 23% decrease in August. Days on the market is 124 versus 203. Upon closer inspection, for the 800 units sold since Jan. 2017 the average days on the market is a startling 46 days. Outer Banks properties are selling much faster; especially new inventory.

New Construction building permits are down by 16% with 184 units compared to 220 last years. Building permit value decreased by 21%.

Outer Banks Town Statistics

The September 2017 median sale prices for the towns in the Outer Banks and the percent change compared to 2016 appear below:

Sept 2017 OBX market report

Sept 2017 OBX market report data table

Corolla experienced the largest percentage gain of 13% compared to 2016. The next highest YTD increase was Hatteras Island at 8%; these towns are unchanged from June, July and August.

The Outer Banks real estate market is on track for a solid sales year. OBXMLS reports 442 under contract compared to 419 units reported last month. October is a great time to visit the Outer Banks and view real estate as the crowds have reduced and the weather is warm during the day but with low humidity and cool at night. Experience the colors of fall on the OBX; the marsh grass gets a pewter color, the sea oats rustle in the breeze and the deciduous trees change into the reds and golds!

If you have been thinking about an Outer Banks vacation home purchase, second home purchase or permanent home, now is the time to act. Purchasing power will decrease once the anticipated mortgage rates increase. Smart buyers and investors will lock in rates now before the increase.

Buy with Eillu and save more with our buyers rewards plan.

If you have considered selling your Outer Banks home, now may be the best time. The lower inventory levels will allow your property to be seen with less competition. The strong demand will sell your home with fewer days on the market. Our 1.5% listing commission will save you thousands of dollars!

The rental market continues to be strong to provide income from the investment and enjoyment for the family for years to come.

The Outer Banks continues to be named a top beach destination every year. Beach nourishment has recently been completed for a large portion of Dare County beaches and will ensure strong future appreciation for real estate.

Schedule an appointment today to find your vacation rental property, second home or investment property.

Eillu listing commission 1.5% Eillu buyers rewards CTA


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 Home? Compare Eillu’s Marketing Checklist and Get More Value for Your Dollar

marketing checklist to sell your home

If you have considered selling your Outer Banks home, vacation rental or investment property then you should be aware of some types of marketing real estate agents use to sell your home.  Most everyone is aware of the MLS (Multiple Listing Service) that most agents use. 

In today’s internet environment, you need marketing that will stand out and get noticed in order to get results.

At Eillu, we have invested in technology to improve efficiencies.  We have a dedicated marketing team who executes a marketing plan just for your listing. This allows our agents to focus on clients.

We provide more marketing services to get your home sold for the highest price in the shortest time.  We know it doesn’t take twice as much time and expense to sell a million dollar property compared to a half million.  For this reason, we have lowered our listing commission to 1.5% (for listing over $300k) and capped them at $15k.

Compare Eillu’s marketing checklist to any other Outer Banks real estate agency to see where you will get the most value for your dollar and keep more of the profits from the sale of your real estate.  Preview our listing presentation for more details.

Eillu’s marketing checklist and full service benefits for our listings:

  • Comparative Market Analysis with Listing Price Strategy
  • Measurements & Notes of Property Features
  • Professional High Resolution Photos
  • Aerial Drone Video – with steady cam tour of inside.
  • MLS Listing
  • Listing on Syndicated Realty Sites
  • Coordinate Showings
  • “for sale” Sign
  • Lockbox
  • Blog post written specifically for your property with community highlights or links.
  • Create internet ads, brochures, email marketing for your listing, and social media posts highlighting your home and its features
  • Host Open Houses
  • Dedicated Web Page for your home on Eillu website with high quality photos
  • “Featured” listing on Eillu home page
  • Zillow 5 Star Premier Agent
  • Follow-up After Showings and Communicate Feedback
  • Review Offers in Detail & Negotiate
  • Follow-up with loan processing, inspections, escrow agents and all other closing process related items
  • Attend Home Inspection
  • Communication to Seller every step of the process
  • Secure document storage, signature and retrieval
  • Attend and Represent at Closing
  • Broker with over 20 years’ experience in OBX market—over $1 Billion in Real Estate sold under his management

Schedule an appointment today to review in detail how Eillu can sell YOUR real estate.  We will prepare a custom market analysis so you know what to expect and how your home compares to properties that are for sale and have recently sold. 

Eillu free custom market analysis


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%


Outer Banks Single Family Real Estate Sales Increased by 19%; Condos 23%- Compared to Last Year

June 2017 Real Estate Sales Increased by 19%; Condos 23%- Compared to Last Year

The Outer Banks Association of Realtors released the June 2017 MLS Statistical Report – you can get the full report here

Real estate sales for June 2017 in the Outer Banks continued the strong performance experienced since February with the highest monthly number of units (1006) sold since October 2005.  July numbers are expected to remain strong with 410 units still listed under contract.  Some highlights from this month’s report follows. 

Overall Market

Residential inventory decreased by 13% compared to last year, following last month’s 11% drop.  Active inventory is 1526 units.  The average sale price and median price increased by 3%.  The quantity sold increased by 17% following last month’s 18% increase; with volume sold up by 20% following last month’s 23% increase; compared to last year.

Lots and land quantity sold increased by 8%.  The average sale price for lots increased by 2% and the median price increased by 7%. Inventory is down by 16% compared to last year. Last month’s lot and land inventory was down 14% compared to last year.

Commercial unit sales are down by 21% following last month’s decrease of 7%. Only 15 commercial units were sold compared to 19 last year.  The average and median sale prices have little relevance with such a small sample and appear skewed from a large sale last year.  Commercial inventory is down 15% compared to last year with only 63 units active on the market.

Residential

Single family unit sales increased by 19% the same gain as reported last month, with 875 units compared to last year 734 units.  The volume sold increased 21% with the average sale increase by 2% and the median sale price decreased by 2%. 

Condos unit sales increased by 23%, following last month’s increase of 36%; compared to last year.  June condo unit sales were 100 compared to 81 a year ago.  The volume sold increase by 26% following last month’s 41% increase.  Median sale prices for condos are up 12% for June, same increase reported last month.  Average sale prices are up 2%, same as last month.  

Residential land unit sales increased by 3% in June, following a 6% reduction reported in May.  The average sale price remained the same as last year with the median prices up by 2%.

Overall Days on the Market for the all properties fell by 24% compared to last year. 

New Construction building permits are down by 7%, with 112 units in June 2017 compared to 121 units in June 2016.   Building permit value is down by 3%.

Distressed Property

There were 18 residential short sale units sold, which is no change from last year.  The average sale price decreased by 11%.  The median sale price increased by 6%. 

Sales for bank owned properties increased from 41 units to 46 units compared to last year. Bank Owned unit sales increased by 12%.  The average sale price for Bank Owned property fell by 13% compared to last year; while the median saw no change. 

Overall, the quantity of distressed property sold increased by 8% compared to the same period in 2016.  The average price decreased by 12% and the median increased by 4%. 

The effect distressed real estate will have on the overall Outer Banks market will continue to diminish as foreclosure and short sale inventory is depleted and the market returns to pre-recessionary levels of distressed real estate.

Outer Banks Town Statistics

The June 2017 median sale prices for the towns in the Outer Banks and the percent change compared to 2016 appear below:

June 2017 Outer Banks Towns Median Sale Price

June 2017 Outer Banks Towns Median Sale Price Table

Corolla experienced the largest percentage gain of 13% compared to 2016.  The next highest YTD increase was Hatteras Island at 7%. 

The Outer Banks real estate market has heated up.  Activity from January to June has been very robust with no signs of slowing down.  OBXMLS reports 410 units are listed as under contract compared to 461 units shown as under contract in May suggesting July sales will also be strong.  This reflects a normal seasonal adjustment from 473 units under contract reported in April.

If you have been thinking about a vacation home purchase, second home purchase or permanent home, now is the time to act.  Purchasing power will decrease once the anticipated mortgage rates increase.  Smart buyers and investors will lock in rates now before the increase.  

Buy with Eillu and save more with our buyers rewards plan.

If you have considered selling your Outer Banks home, now may be the best time.  The lower inventory levels will allow your property to be seen with less competition.  The strong demand will sell your home with fewer days on the market.  Our 1.5% listing commission will save you thousands of dollars!

The rental market continues to be strong to provide income from the investment and enjoyment for the family for years to come.

The Outer Banks continues to be named a top beach destination every year.  Beach nourishment for a large portion of Dare County beaches will ensure strong future appreciation. 

Schedule an appointment today to find your vacation rental property, second home or investment property. 

Eillu listing commission 1.5%              Eillu buyers rewards CTA


Don’t let Real Estate Capital Gain Taxes Take Your Profit

Don’t let Real Estate Capital Gains Taxes Take Your Profit

When it come to the IRS and taxes; nothing is ever simple.  The same is true of real estate capital gains. 

The Basics

Capital gain on the sale of your primary home is the difference between the price you paid and the price you sell it.  So, if you bought your home for $250,000 in 2012 and sell today for $500,000, you will have a gain of $250,000.  However, depending on your particular circumstances, you may not owe taxes on the gain.

The Tax Payer Relief Act of 1997 (TPA)

The IRS will allow you to exclude up to $250,000 of the gain for a single filer ($500,000 on a joint return with a spouse).  Click on eligibility requirements to read the IRS rules.

Generally, there are two tests; the ownership test and use test.  You must have owned and used your home as your primary residence for 2 out of the 5 years prior to the sale.  You can’t use the exclusion if you have taken the exclusion within the previous two years on the sale of another property.  You do not have to report the sale on your taxes if all of the gain is excluded.

Ownership & Marital Status

The exemption is straight forward for couples married with joint ownership and occupying the home for two years of the previous 5 years before the sale. 

A recently married couple who have lived in the home together for two years but the spouse was only added to the title a few months before the sale are also allowed to take the $500k exemption as long as one of the individuals did not sell property within two years and take the exemption.  Both spouses do not have to be on the title for the full two year period but both must have used the home as a primary residence for the full two year period.

All Sales Are Not Equal

Rental property and second homes are not treated the same as your primary residence.  However, if you convert a second home to your primary home, then you can get a prorated exemption based on the time it was a rental and your primary residence.   

If you purchase real estate to fix and re-sell, as a “real estate flipper”, you do not qualify for the exemption and all your gains are taxable. 

The capital gain tax rate is 15% for most folks and 20% for the top tax brackets.  A tax free 1031 exchange can be used to postpone taxes on investment property.

For higher income tax payers (adjusted gross income over $200k or $250k for married joint filing couples),  there’s potentially a 3.8% Medicare surtax on capital gains under Obama Care rules.

Capital Improvements

If you made major improvements to the home, the amount can be used to adjust your basis together with your purchase price to reduce your gain.  Generally these are improvements with a useful life of more than a year, or that increase the value, lengthen its life, or adapt it to a different use. See IRS Publication 523 for a list of qualifying improvements.  You should always keep your receipts and records of any improvements made to the home over the course of your ownership for this reason. 

The rules for items considered capital improvements can be a little tricky.  For example, replacing a broken window pane is considered maintenance while replacing windows for the home is considered a capital improvement.

Painting, replacing appliances or planting annual flowers are generally considered maintenance and are not capital improvements.  Adding a detached garage, replacing the roof or adding new HVAC would be an example of a capital improvements.

Lawyer Fees and Real Estate Commissions

The real estate commission paid by sellers for their primary residence is not deductible but can be added to your basis as the cost of the sale.  Lawyer fees are not deductible.  Fees for tax advice and preparation are deductible if you itemize your deductions and meet the 2% minimum for miscellaneous deductions.

For vacation rentals or property flippers, commission and legal fees would be deductible costs.

Partial Exclusions

If you need to sell a home due to special circumstances, like a change in health, employment or other circumstances, you may still be able to take a prorated reduction based on the amount of time you spent in the home for the prior two years.  So, if you need to move for employment reasons and only lived in the home for 1.5 years, then this is 75% of the two year period.  You would still qualify for $187.5K exemption (.75 x $250,000).

Military

Special rules apply to members of the military due to deployments and service commitments that make it more difficult to pass the use test and allows them 10 years in which to do so.

Recapture Depreciation

Tread carefully when taking a home office depreciation deduction.  All the depreciation deductions taken on your home will be subject to a higher tax, at 25% when you go to sell the home.  For example, if your adjusted basis is $250,000 and you have taken depreciation of $50,000 and sell for $500,000 then only $200,000 of your gain is excluded and $50,000 will be subject to the 25% tax.

Tax planning and preparation can be complicated.  It is always best to consult with an expert in this area for specific advice that considers your exact circumstances.  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%

 

 


5 Ways Outer Banks Home Sellers Justify a Higher Price: Why You Should Put Your Best Listing Price Forward!

5 Ways Outer Banks Home Sellers Justify a Higher Price

One of the most important decisions to make when selling your home is deciding on the listing price.  There are a lot of things to consider to accurately price the home and your Realtor should discuss these with you and explain how he/she arrived at the suggested price.  After several years of having these discussions, we have found common objections owners use to justify a higher price.

I Don’t Want to Leave Money on the Table

Many owners erroneously believe they should start high for fear of missing out on the extra dollars they could make.  These sellers believe the high price will test the market and maybe someone will bite and be willing to pay the higher price.  This almost never happens.  Not only that, but the home typically will sell for less and take longer than if an accurate market price was listed from the start.  Remember, the market value of your home is what a buyer is ready, willing and able to pay – no more, no less. 

I’m in No Hurry to Sell – So I Can Drop the Price Later

Some sellers believe they can command a higher price if they just wait a little longer for the right buyer to come along.  After all, someone is bound to come along and fall in love with the home and it will be a perfect match.  Unfortunately, the longer your home is on the market the more it becomes that tired old listing.  There is a certain stigma that develops when a home has been on the market a long time.  Buyers and agents begin to wonder if there is something wrong with it.  Once you start lowering the price, it has definitely acquired that stigma.  Price it right from the beginning to get the best offer.

I Can Sell It Myself and Save the Cost of Your Commission

Yes, you can sell your home yourself.  Make sure you understand all that is involved to effectively market it, produce the proper disclosures and draft the proper documents.  Ignorance of the law is no excuse for breaking it. 

Keep in mind, you will need to pay a buyers agent commission of between 2-3% in order to attract agents to show your FSBO (For Sale By Owner).  You will also have other out of pocket costs for online listings and putting the property on MLS.  Be prepared to spend a lot of time, like having another job, on tasks to sell and show your home to potential buyers.

Before deciding on the FSBO route, read “How Much Will You Really Save by Selling Your Outer Banks Home Yourself?  According to the National Association of Realtors, FSBOs accounted for 8% of home sales in 2015. The typical FSBO home sold for $185,000 compared to $240,000 for agent-assisted home sales.

We at Eillu, have created a team approach to sell homes.  Our efficient system allows us to list homes for 1.5% listing fee, capped at $15k to pass the savings onto sellers. 

But, I Paid $x Dollar More When I Purchased the Home

It is sad when a homeowner needs to sell and finds their home worth less than what they paid for it.  This happened frequently after the most recent recession.  Unfortunately, what you paid for the home has nothing to do with what it is worth now.  If you find yourself in this position and do not have to sell, consider waiting a little longer to see if market values rise.  Of course, there is a risk that other mitigating factors may occur, like rising interest rates, that can impact the price of your home.

I Put a Lot of Money into Improvements

The sad truth is every dollar you put into your home, you will not get back out when you sell.  Most home improvements return a fraction of what is spent.  However, some of these may make your home more appealing to attract buyers and their offers.  Also, you have been able to enjoy the improvements you have made during your ownership. 

Before taking on a home improvement project, consider the typical return on investment for the improvements.  This report shows 29 projects where the average pay back is only 64.3 in resale value.  Carefully consider the improvements you make to your home to make sure it is fitting for the neighborhood.  If you over improve your home for your neighborhood, your return can be even less. 

If you are thinking of selling, contact Eillu and get a Free Current Market Analysis.  Our experts will provide a detailed analysis with comparables and explain the results.  We can also suggest some simple improvements to enhance curb appeal and attract buyers and full value offers.  We have invested in technology and process improvements to save you money.  Our listing commission is 1.5% and capped at $15k.  It is the best value on the Outer Banks.

Eillu listing commission 1.5%


Outer Banks Real Estate Total Sales and Volume at Highest Level Since 2005

May 2017 Outer Banks MLS Market Report

The Outer Banks Association of Realtors released the May 2017 MLS Statistical Report – you can get the full report here

Real estate sales in the Outer Banks continued the strong performance with each month since February having record sales numbers.  This month’s total sales (987 units) and volume (over $339 Million) is the highest level since 2005!  Some highlights from this month’s report follows. 

Overall Market

Residential inventory decreased by 11% compared to last year, following last month’s 15% drop.  The average sale price increased by 4% and the median sale price also increased by 4%.  The continued lack of inventory is likely to to put increased pressure on prices.  The quantity sold increased by 18% with volume sold up by 23% compared to last year.

Lots and land quantity sold fell by 6% following last month 10% drop.  The average sale price increased by 7% and the median price increased by 8%. Inventory is down by 14% compared to last year.

Commercial unit sales are down by 7% following last month’s decrease of 27%. Only 13 commercial units were sold compared to 14 last year.  The average and median sale prices have little relevance with such a small sample and appear skewed from a large sale last year.  Commercial inventory is down 8% compared to last year.

Residential

Single family unit sales increased by 19%, or 690 units compared to last year 579 units.  The volume sold increased 23% with the average sale increase by 3% and the median sale price decreased by 1%. 

Condos unit sales increased by 36% compared to last year; 80 units versus 59 last year. The volume sold increase by 41% with median prices increased by a healthy 12%, with the average sale price increasing at 4% compared to last year.

Residential land unit sales fell by 6% following last month’s 13% drop.  The average sale price up by 8% and the median prices up by 9%.

Overall Days on the Market for the all properties is 135 following last months reported 162 days.  However, when looking at only properties listed since Jan 1, 2017, the average Days on the Market is only 57 days.  This is another sign of how the local market has picked up this year.

New Construction building permits are down by 32% compared to last year with permit value down by 47%.

Distressed Property

There were 13 residential short sale units sold which is down 7% from than last year.  The average sale price decreased by 3%.  The median sale price increased by 8%. 

Sales for bank owned properties increased from 34 units to 40 units compared to last year. Bank Owned unit sales increased by 18%.  The average sale price for Bank Owned property fell by 13% compared to last year; while the median increased by 12%. 

Overall, the quantity of distressed property sold increased by 10% compared to the same period in 2016.  The average price decreased by 6% and the median increased by 10%. 

The effect distressed real estate will have on the overall Outer Banks market will continue to diminish as foreclosure and short sale inventory is depleted and the market returns to pre-recessionary levels of distressed real estate.

Outer Banks Town Statistics

The May 2017 median sale prices for the towns in the Outer Banks and the percent change compared to 2016 appear below:

May 2017 Outer Banks Town Sales Statistics

May 2017 Outer Banks Town Sales data table

Corolla experienced the largest percentage gain of 12% compared to 2016.  The next highest YTD increase was Hatteras Island at 8%. 

The Outer Banks real estate market is heating up.  Activity from January to May has been very robust with no signs of slowing down.  OBXMLS reports 461 units are under contract suggesting June sales will also be strong.  This reflects a normal seasonal adjustment from 473 units under contract reported in April.

If you have been thinking about a vacation home purchase, second home purchase or permanent home, now is the time to act.  Purchasing power will decrease once the anticipated mortgage rates increase.  Smart buyers and investors will lock in rates now before the increase. 

Buy with Eillu and save more with our buyers rewards plan.

If you have considered selling your Outer Banks home, now may be the best time.  The lower inventory levels will allow your property to be seen with less competition.  The strong demand will sell your home with fewer days on the market.  Our 1.5% listing commission will save you thousands of dollars!

The rental market continues to be strong to provide income from the investment and enjoyment for the family for years to come.

The Outer Banks continues to be named a top beach destination every year.  Beach nourishment for a large portion of Dare County beaches will ensure strong future appreciation. 

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.

Eillu listing commission 1.5%             Eillu buyers rewards CTA


Yes, You Can Expect More With Eillu!