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Bargain Hunting for Outer Banks Real Estate
You have considered buying property on the Outer Banks
before, but you have not found the right “deal.” You tell
your agent to “call me when you see something good.” For
months (or years) now you have been watching the market
prices rise steadily. Some houses seem to be on the internet
week after week, but eventually they are all replaced by
new houses for sale at even higher prices. You might wonder,
are there any deals left on the Outer Banks?
Yes, there are. However, you need market knowledge and
reasonable expectations in order to find the good buys.
Let’s look at the big picture: Outer Banks property value
will continue to increase for several reasons. With a limited
supply of land and increasing demand for Outer Banks property,
values will continue to rise. The Outer Banks has clean
water, warm weather and is within easy driving distance
of several major metropolitan areas. As the baby boomers
retire, demand for retirement homes here will increase steadily.
You do not need to wait for the baby boomers to retire
to make a profit in today’s real estate market. One key
is to look for ways to increase the value of your investment.
Here are a few ways to do this:
Many of us are familiar with the idea of buying a “fixer-upper.”
On the Outer Banks as land values have increased, standards
and expectations for homes have as well. Fixer upper opportunities
are fairly common, and can vary from a home that needs a
good cleaning and paint job to one that needs rebuilding
from the foundation. Some lenders here even have special
loans so that an investor can finance the purchase and renovation
costs. A smart investor can be rewarded for vision, planning,
and the extra effort that a home in less than perfect condition
may require.
Another way to increase the value of an existing property
is to increase the rental income. Most buyers look closely
at the rental history of every property that they consider.
Many will shy away from purchasing a good home if it does
not have a solid history. The rental potential of a home
is more important. If a home has a weak history but good
location and layout, an investor may be able to buy the
property, make changes and significantly increase the rental
income. The addition of a pool, hot tub, or pool table should
have a positive impact on the income. Opening the home to
rentals for the entire season will increase the bottom line
as well. If the size of the home can be increased, rental
income will generally increase also. An increase in income
increases the value of the investment.
Investors may also profit through building a home. Finding
the right lot can be the biggest challenge on the Outer
Banks for you and your agent. Your agent may also help you
select a builder, choose a floor plan and amenities. Make
sure that you understand the government regulations that
will affect your ability to build. A building project can
be rewarding and profitable for the informed investor.
These are just a few of the ways to quickly increase value
of an investment on the Outer Banks. With value appreciation
remaining strong, this simple strategy is working quite
well for many owners: buy a well priced property that suits
the family’s needs, rent and enjoy.
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