For Buyers

Buying real estate in the Outer Banks is a notable decision. Perhaps it is the culmination of a lifelong dream, or maybe you are finally getting the retirement home you want to share with your loved ones.

We’ve gathered some professional Outer Banks real estate advice and helpful home buying tips for those who are looking to buy an OBX home. While you are looking at your options, there are some elements to Outer Banks living that you may want to take into account.

The Beach

Most people move to the Outer Banks, either seasonally or full-time, to be closer to the water. If you’re thinking of buying a home in the Outer Banks and you’re considering renting it while you’re not there, determine how far away from the beach you are.

Seasonal buyers can usually fund a good portion of their mortgage by renting out their homes while they are not there. Renters want to hit the beach, and if you wish to attract repeat renters, check your beach access before you buy your prospective Outer Banks real estate.

Flooding

The Outer Banks are prone to flooding, and, because of this, there are different flood zones, each with a flood zone designation. Homes in the OBX have either an X, AE, VE, or Cobra designation. Which zone your potential property falls into depends on a few factors: Age, elevation, and the structure of the home.

If your prospective home is not in the X zone, you will have to buy flood insurance to secure funding for a lender. Through the National Flood Insurance Program, most OBX properties are insurable against floods for up to $250,000. However, if your prospective house falls into a Cobra flood zone, you may be unable to apply for insurance through the NFIP.

Flood Insurance

It is worth your while to read all the clauses and fine print on your flood insurance documents. Many insured OBX homeowners are shocked to learn that most flood insurance does not cover the land surrounding the property, nor does it cover any possessions outside or around the insured property. These possessions include septic tanks, sea walls, walkways, patios, piers, hot tubs, or pools.

Before you finalize your house sale, understand what it might mean if there is a flood and if these extra possessions are damaged by the flood.

Town Ordinances

The Banks are made up of different towns and townships, and each has its own set of rules, policies, and ordinances.

For example, some towns have dog-friendly beaches, and some municipalities prohibit canines on the beach. Some hamlets allow driving on the beach, whereas others do not. If you have a pet or a specific set of circumstances, check the town ordinances around where you might be living.

The Buying Process

If you’re considering buying real estate for the first time in the Outer Banks, you may be a little intimidated by the prospect. Your OBX Agent has all the information you need and can guide you through this exciting and harrowing process.

As with any other home-buying situation, make sure that you have the prerequisites to secure funding. These are consistent employment, decent credit, and money ready to put down as a down payment.

When these elements are firmly fixed into place, you will then move to the next step of the process, which is investigating your funding options.

Funding

There are various loan possibilities to choose from, and other costs, like mortgage or lender fees, prorations, insurance, house inspections, surveys, appraisals, may crop up in the process. It’s wise to have more money set aside than what you’re planning on putting down, just in case any of these varied costs come into play.

If you understand the process and know what you’re doing, contact a lender. If you don’t have any idea about who to contact, ask your professional real estate agent at Your OBX Agent. We can make some superb referrals to amenable lenders.

This lender will then commence your pre-qualification process. You need to go through this process so that you will know how much you can put down and how much you’ll be able to borrow on your dream home.

It is essential to know how much you can afford before you begin to look for a home. Some clients fall head-over-heels in love with a property only to find out that it is way out of their price range. Save yourself the disappointment and clearly understand your financial position.

Documentation

In the pre-approval process, the lender will undoubtedly want to see the documentation of your employment history and proof that you can pay the proposed mortgage amount without trouble. Your agent wants to find you your dream home, but they don’t want to help get you into a financial situation that will become a burden.

Some of the documents your lender will ask to see are details about your current employment status and history and your current salary. They will also want to scrutinize your tax returns to see if your salary has remained at the same level.

The lender needs to see a list of your assets like your bank statements to ensure you can pay all the costs affiliated with buying a home, including the cost of an unforeseen, minor emergency.

Once you submit your documents and get confirmation, you should receive your pre-qualification in about a day.

The Right House

If you’re looking at a great property, there’s the possibility that others are, too. You increase your chances if you think your strategy through before you bid. In that way, you will be putting your absolute best offer on the table.

One of the ways to come up with a bid that will win you your dream house is to look at comparable properties in the area and make a similar bid.

Before you make a bid, have a firm number in your head that you will not go over. If you are pre-approved, your lender will give you an amount that you can spend. However, you may not want to put down the full amount.

When you’re looking at the house, you’re considering bidding on, check out its condition. Is it in move-in condition, or does it need a lot of work? These decisions affect what you’re willing to put down.

Is it a buyer’s or a seller’s market? A buyer’s market means there are more homes for sale than there are buyers, which means you have more negotiating power. If it’s a seller’s market, then the sellers have the upper hand as there aren’t a lot of properties on the market at that time.

In most cases, the starting price advertised is just that: The starting price. This number will most likely fluctuate throughout the negotiation process. Stay calm and rely on the expert counsel of Your OBX Agent.

The Closing

The ownership of the house is officially transferred during a closing meeting held at the lawyer’s office.

Before this meeting, a title company is hired to search for documents that might affect the deed transference. Examples of these hindrances are conditions and restrictions, easements, covenants, liens, tax assessments, and homeowner association bylaws. Both the lender and the buyer must accept this initial title report before the closing meeting occurs.

Once the sale conditions are met, and the preliminary title report is approved, all parties sign the closing documents. At this point, the preliminary title report will become the final title report. Any applicable title insurance is based on this final title report.

If all the parties agree that the papers are in order, the buyer pays for the closing. If the lender is paying your homeowners’ insurance and annual property taxes for you, a new escrow reserve or account is created.

The final and most exciting step is when you receive the keys to your new OBX home.

Last Thoughts

If you are in the market for buying real estate in the Outer Banks, prepare in advance and find a fantastic real estate agent to help you along every step of the way. Your OBX Agent is ready to help you discover how you can become part of the Outer Banks community. Email us or create an account to get started today. Your dream home is waiting.