Top Five Questions To Ask Before Buying An Outer Banks Vacation Home

Buying vacation rental property is different than buying a primary residence. Also, real estate is transacted differently in North Carolina than the home states of most Outer Banks buyers. Below are a few common questions local Realtors frequently hear along with their answers:

Where should I start my search for an Outer Banks home?
When beginning your search, you should make a list of the most important features a property must have and must not have. This information along with what you want to spend will save a tremendous amount of time looking at unsuitable properties. Sharing this information with your Realtor will save you time as well.

Will the rentals pay for my OBX vacation rental home?
Rarely do Outer Banks vacation rental properties pay for themselves during the first few years with a 20% down payment. Buyers today should expect the rental income to make carrying the property much easier while they enjoy it. Vacation rental income will increase past the break even point over the years for properly maintained and marketed houses. Today’s low prices and interest rates have made owning a beach property more affordable than they have been in years.

How do I get a complete list of OBX foreclosure homes for sale?
Almost all foreclosure homes are listed for sale through the local Realtors’ Multiple Listing Service, (MLS) for maximum exposure. Because some lenders do not want their properties identified as bank owned, the best way to find all of these Outer Banks foreclosure properties is to have your agent search by the name of the owner. Most Outer Banks agents can provide you with a list in just a matter of minutes.

How can I know I am getting a good value?
Most Outer Banks Realtors will prepare a market analysis for their clients on the property they are considering before they write an offer. This allows the buyer to set a target price for negotiations. The market analysis is based on recent sales of similar homes and homes currently for sale. If you know what other buyers were willing to pay for a similar property and have viewed others that might also meet your needs then you can easily determine if a property is a good value. Having this information will give you confidence that you will be paying no more than the property is worth.

Is it easy to get a loan?
Mortgages are not as easy to obtain as they were a few years ago but if you have a 20% down payment and a good credit score you should be able to find a loan. There are still many loan programs available for people with different financial situations. To save time it is best to talk with a lender prior to starting your Outer Banks home search.