The month of October experienced a large drop off in the amount of homes sold as compared to the month of September. September had a total of 124 and October was down to 92.  Currently, November seems to be reverting back to the numbers of September.  A number of national factors could have well contributed to the poor numbers in October.

Sold Properties


Residential- 77
Land -15
Commercial- 0
October Totals:  92

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The question " how expensive is owning a home on the Outer Banks?" is often asked.  Many potential Outer Banks home owners are interested in what exactly goes into upkeep on a home on the Outer Banks.  The answer to this question will definitely vary.

The reason the answer will vary, partly will depend on your home's location.  Oceanfront homes definitely require more maintenance than homes located on the westside.  A good rule of thumb is that a home owner who is planning on using their home as a vacation rental should look to reinvest 20% of the gross rent.  While many consider that a large percent, the long term rewards make it worthwhile.

If you own an oceanfront home, be aware that almost everything is going to rust.  Also, it is going…

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Last time in our series on beach house economics, we looked at capitilazition rate.  Today we will take a look at Gross Rent Multiplier or GRM.  GRM is another way to compare similar income producing properties.  GRM like Cap rate is a simple way to start property comparisons.  To compare properties by GMR, you need two pieces of information: sales price and gross monthly rent.

Calculating the GRM:

To calculate the GRM, you need to take the sales price and divide it by the gross monthly rent.

Sales Price: $100,000

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Gross Monthly Rent: $1,250

Gross Rent Multiplier or GRM: 80

While it does have many limitations, including not taking into account vacancy and differences in operating expenses, GRM is a…

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From oceanfront to soundfront,  more condos are being built on the  Outer Banks.  The Outer Banks now offers some amazing condominiums, with more still being built.  Many long distance home owners feel more comfortable owning a condo.

Owning a condo allows them to have a home at the beach, without the time and energy needed to perform yearly maintenance on the home and yard.  Often, coverage for the maintenance of the condo is included in the association fees.  This is not always true, so it is important to check before buying a condo.  The associated fees could be more than you are expecting, in some cases, depending on the level of the amenities the complex offers.

The most expensive condos are going to be the ones on the oceanfront.  Like any home on the…

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Here are the Outer Banks MLS numbers for September. There were 92 residential properties sold and 36 land/lot deals. A total of 128 transactions for September. While not the busiest month on record, it was an increase of 18 transactions over July's 110. Also, it was an increase of 1 transaction since August. It does appear things are slowly picking up on the Outer Banks.

September 2008 Outer Banks MLS Statistics:

Residential: 92

Land: 36

Commercial: 0

Total: 128

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One of the best ways to get exactly what you want is to buy a vacant lot in the Outer Banks and then build on it.  For many, buying a vacant lot and having a home built allows them to build the home of their dreams.  When starting with a bare lot, you are able to plan exactly how you want everything.

For many, having the ability to purchase and build exactly what they desire makes the process of selecting and buying a lot, then working to have a home built worth the extra time.  The Outer Banks is fortunate to be home to many outstanding builders.  A good way to go about finding a builder would be to check the Outer Banks Home Builder's Association website.

When determining the price you are going to spend on a vacant lot, water views are definitely going to…

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The number one reason to buy oceanfront real estate anywhere is location. It is not possible to have a more desirable location than oceanfront real estate. Its status as the most desired location also makes it the most expensive.

Currently, oceanfront lots in the Outer Banks are ranging from $1,700,000 in Whalehead to around $500,000 in Swan Beach (4wd area). The price on an oceanfront lot is also affected by its location, as you can see from the wide range of prices for oceanfront lots. Location for an oceanfront lot is affected by the community or subdivision it is in.

Highly sought after communities with premier amenities will draw more for their homes and the subsequent lots, than homes in a less desirable community. The effect the…

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     The Outer Banks Visitors Bureau released their August statistics. Gross occupancy receipts for the month of August were up 13.7%. That is a extremely positive sign for the health of tourism along the Outer Banks. Another strong sign was that restaurant receipts were up 2.8%. A double digit increase in tourism for a single month is staggering. Also, it was reported that gross occupancy receipts for the year were up 3.9%.

What does this mean for those looking to buy a house on the Outer Banks?

Now is a great time to start looking for a home. An increase in gross occupancy means that more visitors are coming to the Outer Banks. Again, that is a very positive sign for anyone looking to buy an Outer Banks home to use as a rental property. A…

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One of the traditional ways to measure the value of an Outer Banks investment home is capitalization rate. Capitalization rate is simply calculated and can be an invaluable in comparing similar or dissimilar properties. Capitalization rate or "Cap Rate" is found by taking the homes annual net income and dividing it by the cost. For another explanation, here is Wikipedia's definition. WikiPedia: Capitalization rate (or "cap rate") is a measure of the ratio between the net operating income produced by an asset (usually real estate) and its capital cost (the original price paid to buy the asset) or alternatively its current market value.

Using Capitalization rate to compare Outer Banks investment homes

Home #1

Annual gross rent:…

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Often when the stock market is stressed, it is a great time to buy a home. Is now any different? Perhaps the most dominant conversation on the lips of Americans today is the "economic crisis". The crisis specifically refers to the state of the stock market. With the stock market in such a dire way right now, perhaps it is again time to buy Outer Banks real estate.

Some reasons that Outer Banks Real Estate is looking more attractive

  • Interest rates have again crept low under 6%
  • The stock market is no place for your money...look at the proposed bailout
  • Outer Banks investment homes have gone down in price which means your capitalization rate is higher. (It is getting as high as 7 & 8%)
  • The Outer Banks is still under priced for…

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