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For the Outer Banks real estate purchaser..... After the Offer is Accepted
Once Buyer and Seller have accepted all the terms of the Offer to Purchase, a contract is formed. If you have not already selected a lender and been approved for financing, now is the time to do so. Ideally, you will need to be pre-qualified prior to or at the time of the offer.
There are hundreds of loan programs available depending on what you are purchasing (a home or a homesite), how much of an initial investment, and whether you want a fixed or adjustable rate loan, etc.
Other factors that will have an impact on what type of financing you choose depend on your use of the property. There are three types of use: primary residence, second home, or investment property. Down payments, interest rates, and points all vary depending on the specific type of use.
Primary home financing is the most flexible in terms of interest rate, points, and down payment requirements while second home financing is most common. Initial investments are usually between 10% and 20% of the purchase price. There are government loans available for qualifying purchasers that may allow for 0% down!
Another option for a purchaser is the investor loan. This type of loan allows the buyer to use approximately 75% of rental income (actual or projected) to assist in qualifying for the loan. This might be advantageous for investors interested in a property priced higher than they could afford otherwise. However, there are drawbacks with the investor loan; including higher interest rates and loan points, and bigger down payment. A loan point is calculated as 1% of the loan amount and can often be double that for an investor loan.
Other fees typical for obtaining financing include an application fee, credit report fee, and an appraisal fee – all totalled approximately $400.
It’s a good idea to get started before you start to search for your property.
After you receive loan commitment, the lender will order an appraisal on the property. Whenever a property is financed, the lender requires that the subject property appraise for an amount equal to or greater than the purchase price. All closings on financed property are contingent upon obtaining such an appraisal. If the property does not appraise for the appropriate amount the sales contract could be null and void. While you can not choose your own appraiser - here are a few that you could call in if you wanted to order your own appraisal for marketing purposes, etc.
Otis Culpepper Appraiser
Self Appraisal Services
Outer Banks Appraisal
Having an attorney represent your legal interests in the purchase of real property is highly recommended. The legal fees for a real estate transaction depend on who the lender is, if any; where the property is located; and the purchase price of the property. The attorney's fee usually ranges from $500 to $900.
The attorney conducts the title search, issues an Opinion of Title, and obtains the title insurance for the buyer. This title insurance premium provides peace of mind if clear title to the property is ever in question. If any problem arises regarding the title, the insurance company covers all fees and costs incurred in defending your legal rights to the property.
In addition, the attorney will arrange for a termite inspection (if the purchase is improved property) and a survey prior to closing. The termite report is required by the lender and costs approximately $65. A survey may cost $350 and may or may not be required.
Other issues that your attorney will handle include prorations for rental income (if a rental property), property taxes, association assessments, if any, are prorated as of the date of closing.
If you are financing the property, the attorney will prepare the Promissory Note, Deed of Trust, and other documents as required by your lender. The Promissory Note is the document confirming to the lender that you promise to pay back the loan. The Deed of Trust states that the real property you are purchasing will be acting as security for the debt.
Although you may select any attorney you choose, one attorney that has consistently provided outstanding service for my clients for over 15 years is listed below.
Linda McCown (252) 473-2191, Attorney
When it comes to making one of the largest financial commitments in your life, you can never know enough about the home you plan on buying. A professional home inspection lets you know what you're buying before you buy it!
What is a Home Inspection?
The purpose of a professional home inspection is to provide information for the homebuyer, concerning any major structural or mechanical problems that may exist with a particular home. No home is perfect, even a brand new one. The best way to insure against surprises on move-in day is to be informed ahead of time. This service can provide piece of mind for the buyer, as well as informative advice concerning the maintenance of the home and the safety of its occupants.
What is inspected in the Home?
On site inspection of the basic systems of the home including roof, foundation elements, electrical components, plumbing systems, heating and air conditioning, exterior elements (siding, drainage). Each one of these systems is inspected thoroughly and non-destructively as well as some of the more superficial elements such as windows, doors, porches and interior surface coverings. Some clients may wish a partial inspection of certain major areas that may be of specific concern to them. A home inspection can be tailored to your needs and fees vary accordingly.
It’s important to note that if the home inspector discovers problems with the home – it doesn’t mean that the Seller has to fix them. They are totally negotiable by both parties. The Seller may make the repairs or provide for the repairs or the Seller may refuse to make the repairs. The Buyer can accept the property as-is or refuse to accept the property and void the contract. It is a good idea to leave a little room in the negotiation of the sale price in the event that the Seller refuses to make any repairs. There is a lot of time, effort, and emotion invested up to this point and no one wants the transaction to fall apart because of the inspection.
Home inspections are suggested rather than required and the cost of the inspection (between $400 and $900, depending upon the size of the home) is the responsibility of the buyer. The buyer chooses and hires the inspector of his choice. Lately, I’ve been suggesting the use of a general contractor because home inspectors often defer judgment on repair issues to a general contractor making the inspection a several step process.
On the Mark Inspections
Phone:(252) 473-8207 email@example.com
Home Inspection Repairs: Lee Clark Home Inspections and Repairs
Lee Clark 252-305-5017 Leeclark1031963@gmail.com
The first question most commonly asked by a homebuyer is - “Can I get insurance for this home?” The answer is yes, most of the time.
Insurance on the Outer Banks is a la cart and includes coverage for hazard (Fire), liability, wind, and flood (if required). Hazard insurance typically includes coverage for contents as well. Because flood insurance is a Federal program, it usually is assumable (meaning you can assume the flood policy of the seller).
Any financed property located in a flood zone is required to have flood insurance. A program known as the Beach Plan can insure any property located on the Outer Banks.
My Go-To Insurance agent is provided below, or you may feel free to search for others.
Buyers should begin the process of setting up utility accounts in their name about one week prior to closing. If the property you are purchasing is in a rental program, make sure you ask for a TRANSFER OF SERVICE, otherwise the utilities could be cut off and you’ll have some upset tenants. The following information should help simplify the process: (please note that sometimes utility phone numbers change).
Residential Service: 888-667-3000 or go online at www.DOM.com
When calling…have the following: meter number at property (if available), your account number, name on account, street address and/or property legal description. NOTE: Power Company office handling your call may be located outside of Outer Banks!
Dare County Water Department
252-475-5990 (888-998-9283) Fax# 252-441-2239
600 Mustain Street, Kill Devil Hills, NC 27948
Handles water for Kitty Hawk, Southern Shores, Duck, Colington Harbour, Roanoke Island and Hatteras Island. Dare County requires that new homeowners supply the Water Department with a security deposit prior to initiating service. A Change of Ownership Request form is also required and can be found at www.co.dare.nc.us
Kill Devil Hills Water Department
252-480-4080 Fax# 252-441-6136
107 Town Hall Drive, Kill Devil Hills, NC 27948
Handles all of KDH except Colington Harbour.
Nags Head Water Department
5401 S. Croatan Highway, Nags Head, NC 27959
Handles all of Nags Head
Southern Outer Banks Water System (SOBWS)
444 Maple Road, Maple, NC 27956
Handles water for the following areas: The Villages at Ocean Hill, Corolla Village area, Ocean Sands, Crown Point, Corolla Light, Currituck Club, Monteray Shores, Pine Island, Spindrift, Whalehead Beach and Whalehead Club.
Bill Freed x202/Tina Gee – firstname.lastname@example.org
Mailing Add: P.O. Box 69, Harbinger, NC 27941
Physical Add: 8443 Caratoke Highway, Ste. 1 Powells Point, NC 27966
Handles Sewer for the following areas: Pine Island and all of The Currituck Club, Villages At Ocean Hill, Ocean Sands– Section D-Q ( Sections A, B & C are on private septic) and Crown Point.
Carolina Water & Sewer (Utilities, Inc.)
800-525-7990 (Fax# 704-525-8174)
5701 Westpark Dr Ste 101
Charlotte, NC 28217
If the Sellers do not own their water tap, the new Buyers will have to purchase from Carolina Water. Handles Sewer for the following areas: Village at Nags Head, Buck Island, Monteray Shores.
Corolla: Waste Management Services- #800-877-7531— (Need to find out if trash cans on premises are owned or leased)
Currituck County Mainland– Uses Recycling Centers– Powells Point & Grandy
Dare County Recycling Center: #252-475-5890
Dare County Sanitation Dept: #252-475-5895
Provides Resi. & Comm solid waste collection for Dare County except incorporated towns of Manteo, Nags Head & Kill Devil Hills. This includes: Southern Shores, Kitty Hawk, Colington, Wanchese, Unincorporated are in Manteo, Manns Harbor, East Lake, Stumpy Point, Buxton, Frisco, Rodanthe, Waves, Salvo, Avon & Hatteras.
Duck– Waste Management for solid waste and Tidewater Fiber for recycling. The cans belong to the house and the fees are paid through the annual taxes. If either can is damaged, contact the Town of Duck at 252-255-1234 for replacement cans.
Kill Devil Hills– The town handles all of KDH (except Colington starting at the airport on Colington Road). Contact the Town at 252-480- 4080 if replacement cans are needed.
Nags Head- The Town of Nags Head handles all of Nags Head. Contact the Public Works Department at 252-441-1122 if replacement cans are needed.
Manteo– The Town of Manteo handles all the Incorporated areas of Manteo. Call 252-473-2133 for questions or can replacement.
Dare County/Currituck Beach: Charter Communications – #888-438-2427, 2400 S. Va Dare Trail, Nags Head, 27959
Currituck County/Mainland: Mediacom – #800-239-8411, 2854 Caratoke Hwy, Currituck, NC 27929
Renternetusa.com: Sand Dutcher- Local #: 252-261-6576, Toll Free: 866-RENTERNET (736-8376), Fax: 252-441-2844
Mailing Address: PO Box 15 , Kill Devil Hills, NC 27948
CenturyLink: Residential-252-338-9811 / Commercial– 800-786-6272
Charter Communications: 252-261-0864
All GAS in the Outer Banks area is “mainly” BOTTLED LIQUID PROPANE (LP) GAS which can be used for heating (HVAC), cooking, hot water, fireplace, etc.
The exception is the Natural Gas Line that runs down through Currituck along Rt 158 onto the Beach along Croatan Highway 158 and is accessible by Commercial Vendors along the highway. This same Natural Gas Company (Piedmont Natural Gas) does have a line into the community of Martin’s Point (see below contact information).
A few companies are:
JT Jones Propane & Fireplace…252-491-6513
Outer Banks LP Gas ….252-473-3200
Suburban Propane (formerly Owens Gas)…800-776-7263 or Local# 252-441-9560
Piedmont Natural Gas … 877-279-3636 or 800-752-7504
An important note: the property is not legally owned by the buyer until the deed is recorded at the County courthouse, which usually happens after the closing and most times not until the end of the day. The buyer should take possession of the property only after it has been recorded.