Terry Rush Cremia

Here on the Outer Banks of NC we are asked often by potential buyers, "Are there any good deals on Outer Banks (OBX) foreclosures?"

We tell them, "Of course there are deals on foreclosures here in the OBX--come on down!"

...And then we begin the litany of reasons that foreclosure buying is not for the timid. Firstly (probably as in many places around the country), most foreclosure properties in the OBX need work. The houses and condos have usually been stripped of most or all appliances, many have missing doors, hardware, flooring or trim, and some are simply in disgusting shape.

But everything can be fixed, and for buyers not afraid of some dirty work there really are some great deals here on our little "edge" of the United States.

In the OBX real estate market, foreclosure bank/sellers list with any local brokerage firm who places their properties in the MLS just like any normal, private seller would, with compensation offered to both sides like any normal co-brokerage sale would be.

The differences between regular sales and foreclosure sales in the Outer Banks market are in the mechanics of the deal and sometimes in the financing. The typical offering-to-closing procedure is often changed depending on the bank and Asset Management company (AM) the bank has hired to administer the sale on their behalf.

Some Outer Banks foreclosure properties are in such condition that federally-backed or -insured mortgage lending is not possible. Some properties are missing the HVAC system so they cannot be financed, some are missing hot water heaters, some have missing interior walls, or deck parts missing. And some cannot even be fully inspected before purchase because occasionally the utility companies will not allow re-connect due to compromised or hazardous electrical wiring or large outstanding bills.

This is just a tiny glimpse into the fascinating and potentially rewarding foreclosure situation here on our stretch of sand. It's sad to think about folks losing property, but the great thing about our free market is that another person can come along and buy the property at an affordable price and turn the property back into a viable home and a potential asset to the neighborhood, and therefore help keep property values up in the OBX overall.

I just commented on a fellow poster who is a Home Inspector and I thought I'd expound a little--I LOVE Home Inspectors!

I hear other real estate agents saying how they hate Inspectors but I know there must be fellow real estate agents out there who like them too, right?

When representing buyers, I want the buyer to hire the pickiest Inspector he can get--he's paying for it. Even on new construction, we always recommend an objective report by a licensed Home Inspector to uncover any hidden structural or mechanical defects, which, in our market, are items that if the buyer requests be repaired, the seller must either comply or remediate in monetary form, or the buyer may terminate with release/return of his earnest deposit.

This does not apply to code issues or cosmetic issues.

The seller always has this choice and he knows up front he is not required to do anything, but doing nothing might kill the deal AND subsequently anything discovered then becomes a material fact.

So when representing sellers, I tell them FIX THE IMPORTANT STUFF to sell the property to his under-contract buyer who has money on the table to close, who actually wants to buy the property at the price you both agreed upon (getting rare these days, huh?)...or risk paying one way or the other later.

Better yet, sellers would do well themselves to hire a licensed Home Inspector prior to listing and marketing the property to discover these sames issues early, fix them ahead of time, be proud of the fact and not be surprised later.

It is well worth the several hundred dollars it costs to have a licesned professional check out the property either way--before or during the sale.

See--Home Inspectors ARE our friends!

Outer Banks area Home Inspectors

I just commented on another post and ended with the above quote, a favorite old restaurant saying that I learned as a stressed young hostess juggling waiting lists of angry, hungry would-be diners waiting (too long) for their tables.

I can't cite my source because it was 20 years ago and I can't remember who I first heard say it, but it certainly helps make a point.

The quote's genius is that it rings true for many business ventures--better to lose someone's business very early on in the relationship because they don't like what you have to say, rather than later after you have already done a lot of unappreciated work for them with no reward.

I'll bet lots of agents around the nation have done unappreciated and unrewarded listing work, and blamed themselves for not finding buyers for their sellers. AND many sellers who have blamed their Realtors for the same, when both together never put a proper price on the property.

FAIR MARKET VALUE IS DICTATED BY BUYERS, PERIOD. It's what a buyer will pay and what a lender will lend, and it fluctuates. Deal with it constructively:

This article continues at Outer Banks Community Forum

Our market centers on a tiny strip of sand bordering the Atlantic Ocean called the Outer Banks of North Carolina. You could say we are part of "hurricane central" which can mean occasional flooding.

Here, as you can imagine, we live by the FEMA special flood hazard zones.

The flood insurance coverage we carry (or not) is dictated by lenders of federally-backed or federally-insured loans and the lenders are the entities who dictate what kind of insurance we must carry and can obtain.

One of the most popular destinations for vacationers and thusly investment/rental property buyers here is the area of Corolla in the northern Outer Banks. Corolla lies in Currituck County, which after about 20 years adopted FEMA's new flood maps in December of 2005.

You would be shocked at how many owners never knew about these flood zone changes and subsequently, we are now finding out just how many owners currently for sale have no clue what their current flood zones are. Admittedly, these are largely absentee owners...but that is no excuse for not being on top of something as important as flood zones.

To view the rest of the article go to Outer Banks Community Forum.

Why has ceramic tile become the end-all and be-all "upgrade" for residential sales? Am I missing something? IMO (and MO is not worth much, I know) it's breakable and break-causing, cold and dirty, and an excuse to say you have something better than the Smiths because of course the Joneses already have it.

Yes, this is snarky, but is ceramic tile really that great? I mean, after every house on the block has it, it's redundant to even mention it in the listing remarks anymore. We have sellers of old houses that need lots more than tile floors make a big deal about recent upgrades and it basically makes so many sellers think they can ask higher prices just because they retrofitted some tile.

I've shown many properties with tile floors that are already cracking, have the grout separating or were laid crookedly to begin with (both pro and DIY jobs). I wonder if anyone else out there agrees...and don't get me started on stainless steel appliances...!