Number of home buyers paying with cash increasing

One of the real estate industry trends of 2013 was fairly easy to spot. Cash buyers accounted for one-third of all home sales in the past 12 months. This is about where it has been for the last three years.

Surprisingly, cash home sales took a jump in November, according to RealtyTrac. Cash sales accounted for 42 percent of all homes purchased in November, which is the highest level since RealtyTrac began tracking it. The percentage of cash sales in October was higher than average at 38.4.

Who pays cash?

There are certain segments of the population that have the liquid assets available to pay cash for homes.

• flippers


• retirees who are downsizing


• wealthy who are investing or purchasing vacation homes


• investors who expect the market to improve enough for a good return on investment through rentals


• overseas buyers


• people who have trouble getting financed

What it means

While the housing market is slowly heading back to normal, the rising number of cash sales is a sign that recovery is not complete. The pace is simply not sustainable.

The trend upward in cash-only sales began when mortgage rates began to tick up. Buyers with cash are willing to forego the tax advantage of carrying a mortgage to save on interest. Other savings for cash buyers include loan origination fees, appraisals and some closing costs.

Other advantages for cash buyers include avoiding the loan qualification process and the ability to close the deal very quickly.

How your property taxes are paid

Last week, we talked about where your property taxes go. This week, we’ll talk a little about how they are paid, which for most homeowners is a line item on their mortgage statement.

For most borrowers, holding property taxes in escrow is required by the lender. Some lenders who will let you do it still discourage it by charging you more interest. Today, though, most banks won’t even give you the option of not having an escrow account unless you can prove you have a certain amount of funds on hand or you have a certain amount of equity in your home, usually 20 percent.

No matter what state you live in, if you have a mortgage, chances are pretty good that your lender pays your property taxes through an escrow account. In fact, many people never even become aware of the monthly allocation until their mortgages are paid in full and they are directly responsible for paying the property taxes themselves.

Even if your bank pays your personal property taxes, you should receive a copy of the bill at least once each year, whether you pay your property taxes directly to the tax authorities or through your mortgage lender.

Always keep the latest copy of your tax bill where you have easy access to it. You never know when you might need it to prove residency. For example, some school districts require it when you enroll the kids in school, particularly if you're enrolling them in a new school. And you'll ALWAYS need it to do your income taxes, too!

The obvious reason to use an escrow account is, quite honestly, convenience. Simply adding it to your mortgage payment, not worrying about the paperwork, ensuring that it is paid on time... it honestly negates any cons related to escrow.

Some people who own their home continue to use an escrow account because they can set it on autopilot and don’t have to worry about making the payments when they are due.

What do property taxes pay for?

The end of the year brings holiday celebrations, New Year’s resolutions, football playoffs and bowl games, and for many, the dreaded property tax bill.

If you're like most people, you look at your property tax statement and automatically think "That's too high." But if you take a closer look, you'll see that your property taxes are spent in a lot of different areas, which is why it’s so hard to get lower taxes overall.

Depending upon where you live, your property taxes fund any number of state and local government functions. Here are the most common lines you'll see on your property tax.

Schools

By far, public schools are the largest single line item in nearly any property tax bill. A commitment to providing the best possible education often leads to higher local property values. In addition, the houses in neighborhoods with higher rated schools generally have higher prices. Although public school systems get funding from a variety of sources, including federal government, state government, fund raising efforts, the largest source is generally from property taxes. This is also why any tax reduction attempts meet strong resistance from both school employees and parents of school-aged children.

Public roads and parks

Although a lot of money from gasoline goes to roads, those are mostly financed by state and federal government. City and neighborhood street repair comes from property tax. Public park maintenance is funded as well.

Utilities

Depending upon the area in which you live, your property tax bill may also include certain utility costs that are provided by the county or municipality, which could include sewer, water and maybe garbage collection.

Government administration costs

This is a relatively small part of the local budget, but it covers salaries and benefits for municipal administrative staff and the buildings that house them.

Public safety

Many people mistakenly think that traffic citations fund police budgets, but most of their operating budget is provided through property taxes. Firefighters are also included in this category. This includes not only salary and benefits for policemen and firemen, but support personnel as well the acquisition of buildings and police cars.

Libraries

Although they’re not usually very large parts of your tax bill, they are considered highly desirable in most communities and largely beyond political haggling. When a tax increase is on the ballot, it rarely fails.

City and county allocations

Both rely primarily on real estate tax revenues to support their operations, so taxes are usually collected and paid to both. In many cities and counties, one government agency may collect the tax under a single bill, then apportion the funds, so you may pay your taxes to your municipality who then forwards the required portion to your county.

Nrew schedule for Corolla curbside collection for 2014

Corolla curbside collection dates announced

From Staff Reports

The Daily Advance

Saturday, December 14, 2013

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CURRITUCK — Currituck County and Bay Disposal Inc. have established a new schedule for the 2014 curbside collection of trash and recyclables in Corolla.

The schedule follows meetings by county staff and Bay Disposal officials with property associations on the Currituck Outer Banks.

Effective Jan. 1, 2014, the collection schedule will be as follows:

• Monday and Friday service (in-season, May 1 to Sept. 30):

Buck Island, Corolla Light, Currituck Club, Pine Island, Spindrift, Ocean Sands South — Sections A, B and C, and remaining residences fronting N.C. 12 not included in communities listed below.

Off-season, Oct. 1 to April 30, pickup day will be Monday.

• Wednesday and Saturday service (in-season):

Corolla Village, Crown Point, Monteray Shores, Ocean Hill, Ocean Sands — Sections D-Q, Villages at Ocean Hill, and the Whalehead subdivision.

Article Continues Below

Off-season pickup day will be Wednesday.

Anyone not included on this list should call Brenda McQueen, Currituck County Public Works Department, at (252) 232-2504.

Recycling service has been expanded for 2014. From May 1 to Sept. 30, recycling will be picked up twice per week, on the same day as the trash collections listed above. Each house will continue to receive one free recycling container from Currituck County.

Property owners who previously leased trash cans from Waste Management may continue to use the same cans. Bay Disposal has purchased from Waste Management all containers in the lease program and will visit each house to place new stickers on these cans.

Citizens who own their cans may continue to use those containers. Bay Disposal will collect trash from each household, provided it is in a proper container, regardless of whether the cans are leased or privately owned.

Anyone who owns their cans may obtain a free sticker to specify the recycling can. These stickers are available at the Currituck County Satellite Office, located at 1123 Ocean Trail. Stickers are to be placed on the can’s top lid, so it is visible to Bay Disposal’s truck drivers.

Corolla customers needing to contact Bay Disposal regarding leasing cans, damaged cans, bulk pickups or other questions about service may call (252) 491-5105.

The pros and cons of buying a home during the holidays

Two weeks ago, we talked about the pros and cons of selling your home during the holiday, so this week we'll talk about why buying your home at the same time presents challenges and opportunities.

The pros

The holiday season can be a good time to find a home. If you are planning to buy a home, but are waiting until the market heats up in the Spring, you might want to reconsider.

Right now, interest rates remain low, but because there is less demand for mortgage loans, you could get an even better rate.

Prices can be lower because sellers may drop their asking price

Fewer buyers = Less competition

Homeowners who keep their homes on the market are motivated sellers

Tax deduction for the current year

Fewer closings = faster transactions

The cons

Of course, there are some disadvantages to trying to buy a new home during the holiday. There's a shortage of inventory—the best homes in your price range may not be available because the seller may choose to wait until Spring. The market is slower because many agents schedule vacations at this time of the year. A blanket of snow can hide defects in the home's exterior and the landscape as well.

If you’re considering buying a new home, this time of year could prove to be advantageous. It could be the best time of year to buy. Talk to your REALTOR® to discuss your options.

BONNER BRIDGE TO CLOSE IMMEDIATLEY

News Release 

Bonner Bridge to Close Immediately

RALEIGH - To protect the traveling public, the N.C. Department of Transportation has closed the Herbert C. Bonner Bridge over the Oregon Inlet on N.C. 12 along the Outer Banks today due to immediate safety concerns.

Routine sonar scanning of the bridge identified scouring concerns, or areas where too much sand has eroded from the support structure of the bridge. As NCDOT crews continued to monitor these conditions, inspections revealed additional areas of concern, which led department officials to decide to close the bridge immediately for the safety of all residents and visitors of the area. The bridge will remain closed until the department can bring in additional resources to inspect the bridge and make necessary repairs to fortify the structure.  NCDOT has declared a state of emergency as a way of expediting the process and steps are already underway to begin repair work as soon as possible.

“Closing the Bonner Bridge is necessary to keep all travelers safe, but we know it will have a devastating effect on the people who live along and visit the Outer Banks,” said NCDOT Secretary Tony Tata. “We will work to safely reopen this vital lifeline quickly, and hope to be able to begin construction on a new bridge as soon as possible.”

NCDOT is working closely leaders, emergency workers and other officials to keep the public informed throughout the process.

The Bonner Bridge is the only highway access for vehicles between Hatteras Island and the mainland. Until it is safe to reopen, The NCDOT Ferry Division will provide emergency support to move people and cars across the Pamlico Sound.

Ferry Division workers have already tested the emergency ferry ramps at Stumpy Point and Rodanthe, and the division is currently sending four 180-foot River Class vessels to begin operating the emergency Hatteras Island route. All tolls currently in place on the Ocracoke-Swan Quarter and Ocracoke-Cedar Island ferry routes will be waived for residents, emergency personnel and vendors while the bridge is closed and the emergency ferry route is in operation. The U.S. Coast Guard is also currently on standby.

“We expect the emergency ferry route to be up and running Wednesday morning,” said Ferry Division Deputy Director Jed Dixon. “We know the residents of Hatteras Island are depending on us to be their lifeline, and we take that responsibility very seriously.”

At full capacity on a full schedule, the route can ferry 760 single cars a day, 380 from each side. A detailed emergency ferry route schedule will be available on the Ferry division website.

Replacing the Bridge
For decades, NCDOT has known the Bonner Bridge stands on borrowed time and needs to be replaced. NCDOT awarded a contract to a design-build team to replace the bridge in August 2011.  Design work began immediately and construction of the replacement bridge was originally set to begin in early 2013. All work is currently on hold following a series of legal challenges by the Southern Environmental law center on behalf of the Defenders of Wildlife and National Wildlife Refuge Association.

On Sept. 16, NCDOT received a favorable ruling in the federal lawsuit filed by the SELC when Judge Louise Flanagan issued a 42-page order denying all claims that NCDOT violated federal law when the department studied and selected the parallel bridge.

On Sept. 27, Judge Julian Mann III issued an order allowing NCDOT to intervene in the state action filed by the SELC against the N.C. Department of Environment and Natural Resources Division of Coastal Management for issuing a Coastal Area Management Act (CAMA) permit to NCDOT. Legal staff is working to resolve the state action as quickly as possible.

On Oct. 1, the SELC appealed the federal judge’s ruling that would allow construction to begin on the bridge replacement project. The appeal added further delay in building a parallel bridge to replace the current bridge, which is already well beyond its expected 30-year lifecycle and in constant need of repair and maintenance to keep it safe for travel.

The documents relating to the state action, as well as the federal ruling are available on the Bonner Bridge Replacement webpage.

Next Steps
Once the CAMA permit challenge and the federal appeal are resolved, NCDOT will immediately move forward with construction of the new bridge.

Background
NCDOT has already spent more than $56 million in necessary repairs, inspection and maintenance on the 50-year-old bridge since beginning the process to replace it more than two decades ago. Two additional repair projects on the Bonner Bridge, which total $2 million, and are needed to keep this critical transportation corridor open, began this fall.

Read more about the history of the Bonner Bridge and challenges to building a new one.

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How to get a better rate on your mortgage

When you buy a new home, you can reasonably expect that the cost of borrowing will add up to a great deal of money. Anything you can do to shave even tenths of a percent off the percentage rate can potentially save you thousands of dollars over the 30 years you'll carry the mortgage.

There are a number of things you can do to help yourself get a better rate on your mortgage:

Check your credit score

To get an idea of what your credit score is, you can check with free services or at MyFICO.com, which costs around $20. Looking at these reports can give you a general idea of what your score is and how to improve it. If you pull your own scores, make sure to compare them to what your lender is seeing.

Fix any errors on your credit report

Look through your credit report from each company for errors and negative items. Try to fix any errors that you find as quickly as possible. Each reporting agency will have details about disputing information. If the issue is not resolved after filing a complaint, contact the Consumer Financial Protection Bureau.

Pay your bills on time

From time to time, it's easy to put off paying a bill on its due date. It really seems insignificant, especially if you're having trouble making ends meet. Just one late payment, though, can cause your credit score to drop.

Reduce the amount of debt you owe

One of the criteria your mortgage lender looks at is your debt-to-income ratio, which is simply how much debt you are carrying compared with your monthly income. This number affects whether you qualify for a loan and what your interest rate will be.

Keep your old accounts open

Part of your credit score is based on the length of your credit history. It will not hurt to keep an old account open until your mortgage is secured. It may even be beneficial to keep your oldest account open even if your annual fee is due.

Don't apply for any new credit

When you decide that you're going to apply for a mortgage, don't apply for new credit of any kind. Not only can it mess with your debt to income ratios, if you have few accounts or a short credit history, inquiries can have a greater impact on your credit score.

Make sure to discuss your credit scores – and how they affect your mortgage rates – with your lender. They may be able to make other suggestions about how to improve your credit score so that you may qualify for a lower rate, which could save you a lot of money in the long run.

Outer Banks Multiple Listing Stats as of 12/1/13

There are over 3,000 listings on the market, out of those 3000 only 9% are distressed sales. There are 381 under contract or under contract continue to show. Out of these under contract listings 30% are distressed sales.

Current  active listings average days on market is 301.  322 new listings came on the market in past 30 days and 114 went under contract

Year to date 1886 properties have closed, and in 2012 there were 1916 properties to sell year to date.We are down 1.57% from 2012.

The average days on market for sold listings in 2013 are 239, and for 2012 they were 237. In 2013 the sold price was 93% of asking price and in 2012 the sold listings were 85% of asking price.

In 2013 and 2012 the number of distressed sales for sold listings  was  32%
This information was taken from OBXWHERE application.

What is OBXWHERE?

The purpose of OBXWhere application (app) is to allow for anyone to search for properties for sale on and near the Outer Banks of NC. OBXWhere is a web app that runs in almost any web browser. Formatted for a smartphone, it also runs on computers. So, you do not need to download anything from an app store to start using it. You can bookmark it and/or save to your mobile device's home screen to quickly access it.

OBXWhere is used by many agents, belonging to Outer Banks of Association Realtors® (OBAR), to provide easy access to information on properties for sale. It is free for anyone to use to look up property for sale and to contact the agent. There is also an evolving "Area Info" section where you can find information about areas as well as events.

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Selling a home during the holidays

The holidays are in full swing. People are busy planning parties, shopping, trying to reach goals for the year, making travel plans. Probably not the best time to sell your home, right?

Not necessarily.

This could be an opportune time to sell your home. Of course, there are some cons to trying to sell at this time of year, but selling now offers you some distinct advantages over waiting until after the first of the year.

1. People looking for a home over the holidays are more likely going to be serious buyers.


2. A lot of sellers take their homes off the market, which means serious buyers have fewer homes to choose from


3. Less competition right now means more money for you.


4. The number of homes on the market will drastically increase after the first of the year. Less demand means less money.


5. Houses show better when they’re decorated over the holidays.


6. Buyers are more emotional during the holidays and tend to spend more money, which means you can get closer to your asking price.


7. Because they are likely to be on vacation, buyers have more time to look at new homes over the holidays and are more likely to come on weekdays.


8. The tax break they receive is a motivating factor for many buyers.


9. Companies traditionally use January to relocate employees who can't wait until there are more homes available in the spring.

It should be noted that there are some drawbacks to selling your home during the holidays. You may prefer not to schedule showings and closings at this time. You may not want to move during this time – not only are schedules hectic, the weather is not always cooperative. Speaking of the weather, if you live in a colder climate, snow and ice cuts down on foot traffic.

If you’re considering selling your home, it could be the best time of year to sell. Talk to your REALTOR® to discuss your options.

Why flood insurance rates are rising

As a homeowner, you may have noticed two developments concerning flood insurance recently:

1. You now have to buy flood insurance


2. It's really expensive

This is not due to your insurance company raising rates because they are paying for damages caused by Hurricane Katrina, Superstorm Sandy, or Midwest flooding in 2012. It is due to the Biggert-Waters Insurance Reform Act of 2012. The Act made sweeping changes to the National Flood Insurance Program and they just kicked in last month. At the point that Congress passed the new law, NFIP was $18 billion in debt.

How does it affect homeowners?

Biggert-Waters phases out flood insurance subsidies on hundreds of thousands of older homes. This means that premiums will necessarily skyrocket. Homes sold after Biggert-Waters passed in July, 2012, or those whose policies lapse, will see their premiums immediately go up to the non-subsidized actuarial rate.

Part of the Act raised what's known as the base flood elevation (BFE) for certain areas, which means that some homeowners who never had to carry flood insurance now have to. If your home is now in a high risk zone, you may have to raise your home by putting it on pylons, which could cost tens of thousands of dollars, but will not significantly increase the value of the home.

Homeowners who have properties in the new FEMA flood zones could experience flood insurance premium increases of 500-1000%. Mortgage payments in effect double when seeing that kind of increase. This means that property values go down. Owning a home along the nation's coasts and river valleys becomes less attractive. Building a new home in these areas becomes almost impossible.

Reaction to Biggert-Waters is gaining momentum as homeowners realize exactly how it affects their homes’ value and premiums. If you find that your premiums have risen, talk to your insurance representative.

Moving truck driving tips

Many people choose to rent a moving truck rather than hiring professional movers in order to save money when they move. Make sure to review all safety information with the rental business before driving the truck.

Here are some guidelines for safe truck driving.

Drive defensively

Practice these basic driving habits so others know your intentions and to help prevent accidents.

• Check the mirrors for other vehicles frequently.


• Never tailgate. Trucks require more time and room to stop.


• Never use the passing lane on the interstate.


• Allow more room and more time for lane changes.


• Watch sharp turns. Trucks are longer and wider than cars, so they need more turning area.


• Always use your turn signal to let other drivers know your intentions.


• And, of course, always wear a seatbelt!

Vehicle safety

• Make sure to familiarize yourself with the truck before hitting the road.


• Never drive if you are over-tired.


• Avoid medication and never drive under the influence of alcohol.


• Bring a friend or family member to help with the driving.


• Stop every two hours or so to prevent fatigue.


• Stop regularly for coffee or soda and a snack, or just to stretch your legs.

Backing up

• Avoid backing up if you can. If you must back up, have someone direct you from the side at the rear.


• If you're towing anything, it's best to NEVER back up.

Save money on fuel

• Obey the speed limits.


• Gradually build to the desired speed.


• On the highway, keep a consistent speed and don't attempt to pass.

Parking

• Set the emergency brake every time you park.


• Turn the wheels away from the curb with the truck faced uphill; toward the curb when facing downhill.


• Look for "drive-through" parking spaces to avoid backing.


• If you're stopping at a hotel, always park in well-lit areas. Lock all doors and padlock the safety chains if you're towing anything.


• At road stops and restaurants, park where you can see the vehicle.

Stopping

• Allow at least five vehicle lengths between you and the vehicle ahead of you.


• Brake earlier than you think you need to.


• Ease off the accelerator when stopping to avoid shifting cargo.

Avoid height-related accidents

• Know the height of the vehicle you're driving.


• Be aware of low canopies, overpasses, bridges, tree branches, parking garages and signs prohibiting truck traffic.


• Don't use the drive-through at a restaurant. Park the truck and walk in.

Moving truck driving tips

Many people choose to rent a moving truck rather than hiring professional movers in order to save money when they move. Make sure to review all safety information with the rental business before driving the truck.

Here are some guidelines for safe truck driving.

Drive defensively

Practice these basic driving habits so others know your intentions and to help prevent accidents.

• Check the mirrors for other vehicles frequently.


• Never tailgate. Trucks require more time and room to stop.


• Never use the passing lane on the interstate.


• Allow more room and more time for lane changes.


• Watch sharp turns. Trucks are longer and wider than cars, so they need more turning area.


• Always use your turn signal to let other drivers know your intentions.


• And, of course, always wear a seatbelt!

Vehicle safety

• Make sure to familiarize yourself with the truck before hitting the road.


• Never drive if you are over-tired.


• Avoid medication and never drive under the influence of alcohol.


• Bring a friend or family member to help with the driving.


• Stop every two hours or so to prevent fatigue.


• Stop regularly for coffee or soda and a snack, or just to stretch your legs.

Backing up

• Avoid backing up if you can. If you must back up, have someone direct you from the side at the rear.


• If you're towing anything, it's best to NEVER back up.

Save money on fuel

• Obey the speed limits.


• Gradually build to the desired speed.


• On the highway, keep a consistent speed and don't attempt to pass.

Parking

• Set the emergency brake every time you park.


• Turn the wheels away from the curb with the truck faced uphill; toward the curb when facing downhill.


• Look for "drive-through" parking spaces to avoid backing.


• If you're stopping at a hotel, always park in well-lit areas. Lock all doors and padlock the safety chains if you're towing anything.


• At road stops and restaurants, park where you can see the vehicle.

Stopping

• Allow at least five vehicle lengths between you and the vehicle ahead of you.


• Brake earlier than you think you need to.


• Ease off the accelerator when stopping to avoid shifting cargo.

Avoid height-related accidents

• Know the height of the vehicle you're driving.


• Be aware of low canopies, overpasses, bridges, tree branches, parking garages and signs prohibiting truck traffic.


• Don't use the drive-through at a restaurant. Park the truck and walk in.

Does checking your credit hurt your score?

One of the myths surrounding personal credit scores is that checking your own credit reports and scores will make your score go down. That myth has been around for nearly as long as credit reporting agencies.

This myth hurts home buyers because it discourages them from checking their credit report in order to know what’s in it. If your report has erroneous information, at worst it could result in you being turned down for a loan. At best, it could cost you thousands of dollars by paying a higher interest rate than you should.

The simple fact is that checking your own scores does not affect them in any way. It’s what’s known in the industry as a “soft” inquiry. When you make the request, it will show up in your report, but it does not affect your score.

A “hard” inquiry from any potential creditor can adversely affect your credit score because it represents potential new debt that doesn’t yet appear in your credit report as an account. One piece of advice: If you have a friend who works at a bank or car dealership, don’t have them pull a credit report just so you can see it. If you don’t have a long credit history, this hard inquiry could affect your score enough to cause a problem.

Requesting a copy of your own credit report will not affect your credit scores. An inquiry will be added to your report as a record that you requested it. This type of inquiry is sometimes called a “soft” inquiry because it is shown only to you. Therefore, you can check your own credit report as often as you like with no effect on your credit scores.

You can request your own scores from any number of sites for a minimal cost. Ask your REALTOR® to recommend where you should make a request.

Seven things that kill your home sale

Your home can be immaculate, in a great neighborhood and priced right. But when a prospective buyer walks in, they can be persuaded to turn and walk out. Obviously, they're motivated; otherwise they wouldn't have wasted the trip.

If your home has any of following six problems, you may see the buyers turn on their heels and head in the direction of the next property. Two of them, you can't do much about. The others can be fixed, but the cost ranges from not much to quite a bit.

Seven deal-breakers for homebuyers

The backyard isn’t family-friendly

The back yard is something that potential home buyers give great consideration to when buying a home. They imagine cookouts, landscaping, gardens, kids playing and tire swings. If it doesn't match up to their expectations, it's a deal breaker... and there's not much you can do about it.

Mold

You can try to cover it up but it's going to be found in the inspection if you have it. Fixes range from a new piece of drywall behind the bathroom sink to calling out a remediation crew. Don't hide it, especially if you've spent the money to have it removed.

Foundation problems

A crack in the foundation can cause a myriad of other mostly cosmetic, but costly, repairs, from repairing drywall to doorframes. Many buyers walk away from foundation problems. Most lenders require foundation problems to be repaired before closing. And even a fixed foundation can be a deal-breaker because potential homeowners are worried about the damage that it has caused.

Personal belongings

Your sense of style and taste may not appeal to the potential buyer. Ask your REALTOR® about staging your home for sale. He or she will have some suggestions about what should be put in storage until you complete the move. For higher end homes, you may want to consider hiring a staging consultant.

The house is dirty or smelly

Pets, mildew, smoke... these are all turn-offs to potential buyers. Permanent smells and stains, if they aren't a deal-breaker, may mean you'll have to drop the price on your home because the new owner will have to pay to have it cleaned or do it themselves... which can be a big undertaking.

Pest infestation

This is especially true of termites. The damage they can cause is not always immediately apparent. A certified termite inspector knows what to look for and how to eradicate them.

Location

You can have the perfect house, the right number of bedrooms, a great kitchen, plenty of storage space, a clean inspection and a perfect back yard, but if the location is horrible, your house is going to sit for a while.

What is eminent domain, and should I be worried?

One of the things that property owners must be concerned with is eminent domain, which is defined as "the right of a government or its agent to expropriate private property for public use, with payment of compensation."

City, county, state and federal governments can claim eminent domain for any number of reasons. For example, if your property is impeding a road expansion, it may make the claim in order to make the land available for public use.

If you receive notification that a government entity is considering an eminent domain designation on your property, there are two things you should know:

1. They have to pay you fair market value for it.

2. Their offer will be on the low end of fair market value.

Eminent domain power can and has been abused. There can exist a conflict of interest when a developer lobbies a city government for a redevelopment project, only because it plans to construct new buildings for office, retail or housing in order to line their pockets.

The first thing you need to do when faced with eminent domain is hire an attorney who specializes in the area.

1. Agency with the interest in your property will hire an appraiser to inspect and appraise your property.


2. Agency makes an offer, usually a low one.


3. If you don't accept their offer, and are unable to negotiate a fair deal, they will schedule a public hearing. The agency has to prove their case that acquiring the property is necessary for the public good.


4. They will file a complaint against you in Superior Court, and you will be served a summons which requires a response.


5. They will deposit "probable compensation" and file a motion for prejudgment possession with the Court. At this time, you may object once again. If their motion is approved, they may take possession of your property within 30 days.


6. At this time, your attorney will obtain appraisal reports from appraisers and other experts to establish your property's fair market value. These reports are filed with the Court and presented to the agency who filed for eminent domain.


7. Mediation - the two parties come to an agreement, if one can be reached.


8. If you can't come to a compromise, they are forced to make a final offer.


9. If you still do not accept the offer, a trial will be held to determine fair market value of your property and hear any other issues.

Your rights as a property owner vary by your home state. You need to be informed of those rights and the process. For instance, depending on your home state, you may be able to recover attorney fees from the agency who filed the case. Do your homework. Most importantly, hire a successful attorney who specializes in eminent domain cases.

Lenders using new criteria to determine credit risk in mortgage loans

A low credit score doesn't necessarily result in an automatic turn down for a mortgage loan.

Mortgage lenders are looking for borrowers who are good risks, even though they may have little or no credit history. Lenders are now looking at additional criteria, some that they may not have considered a few years ago, in order to find new home buyers who are good risks, even though their credit score may not show it.

Those most likely to gain from this new way of looking at financial history include young adults and new immigrants. They are more likely to be approved without being subjected to extremely high interest rates because their scores are not high.

This "non-traditional" data that lenders are now looking at when considering home loan applications includes:

Information in public records, including property records and professional licenses. A license indicates that a person is a better risk because they have a steady income and commitment in the community.

Rental payment is another category that reporting agencies have begun to consider. Late payments could be an indicator of future behavior.

Utility payments and cell phone bill payment history can also be an indicator of whether a person with little or no payment history takes paying their bills seriously.

The takeaway for many is that even though you may have little credit history, or may have a score that falls somewhere between bad and good, you may be able to secure a loan from a mortgage lender. The first thing you need to do is talk to a lender to see what you qualify for and what a loan will cost. A mortgage lender will also be able to tell you how to improve your scores so that you can get a better rate.

What the government shutdown means for home buyers and sellers

With Congress unable to come to an agreement, we've got a situation known as a partial government shutdown. The last time this happened was in 1995 when there was a shutdown that lasted for 21 days.

Many agencies, such as NASA, have furloughed non-essential personnel. Still others are operating at full capacity, including the military and TSA. There are many, including Housing and Urban Development, which are operating with skeleton crews.

Early reports stated that the Federal Housing Administration would stop processing loan applications. This is not the case. The first contingency plan issued by HUD mistakenly stated that FHA would be unable to endorse any single-family loans and that staff would be furloughed.

The announcement sent a panic through the real estate market. After noticing the error, HUD issued a statement saying that its Office of Single Family Housing will continue to endorse new loans even in the event of a lapse in appropriations.

The FHA is funded through multiyear appropriations. There will be some reductions in staff and furloughs, but it will be able to operate. Because the department will be short-staffed, there could be some delays, but the paperwork will be processed. Multi-family operations, however, are funded on a year-by-year basis. During a shutdown, condo projects would be put on hold because the FHA will not be able to underwrite them.

It is unknown at this time how much of a delay we can expect in single-family loan applications or what the long-term impact of a lengthy shutdown will be. In its statement, HUD said that it does not expect the impact on the housing market to be significant, provided the government shutdown is brief.

Government Shutdown Information for OBX

GOVERNMENT SHUTDOWN INFO From OBAR

THE NUMBERS: Dare County is 1,562 square miles, of which 75% is water.
Of the 384 square miles of land, 307 square miles are owned by the government - either local, state or predominately the Federal Government.
ONLY 77 square miles of land are privately owned.

The following Outer Banks sites have been impacted by the Federal Government Shutdown:

CLOSED:
Wright Brothers National Memorial/Visitors Center
Dare County Lighthouses - Closed
Fort Raleigh National Park - Roanoke Island (Elizabethan Gardens (privately owned) "Psychopath" event is operating as scheduled)
National Park Service property - Cape Hatteras National Recreational Seashore is closed. This has impacted fishing, swimming, pedestrian access and beach driving permits.
Oregon Inlet Fishing Center
National Park Service property campgrounds

Visitors and Residents should check to see if any event/activity they were planning to participate in was scheduled to be held on federally owned property.

State and locally owned event sites such as Jockey's Ridge, Nags Head Woods, Roanoke Island Festival Park and the NC Aquarium are OPEN.
Currituck Heritage Park sites - the Currituck Beach Lighthouse, Whalehead and the Outer Banks Center for Wildlife Education are OPEN.

The Outer Banks Home Builders Association's Parade of Homes will be held Thursday thru Sunday this week.
The Nags Head Surf Fishing Tournament scheduled for next week will be held as planned.
The Outer Banks Seafood Festival scheduled for October 18th and 19th on the Outer Banks Event Site in Nags Head will be held as planned.

The Nags Head Surf Fishing Tournament scheduled for next week will be held as planned.
The Outer Banks Seafood Festival scheduled for October 18th and 19th on the Outer Banks Event Site in Nags Head will be held as planned.

Due to the shutdown, the House Financial Services Committee Hearing on Flood Insurance scheduled for Wednesday, October 9th has been cancelled.

DSNEWS-COM-List of Recovering Markets HIt Record

The National Association of Home Builders/First American Improving Markets Index reached its highest level on record in September with a little more than 80 percent of markets qualifying as “improving.”

The index, released Monday, tracks 361 metropolitan areas for improvement in housing permits, employment, and house prices. Markets have to demonstrate improvement in all three areas for six consecutive months to make it on the list.

Of the 291 markets that made it onto the latest Improving Markets Index, 242 were repeats from the previous month, and 49 were new to the list.

Five markets dropped off the list over the past month. Those markets include Kankakee, Illinois; Burlington, North Carolina; Jacksonville, North Carolina; Winston, North Carolina; and Danville, Virginia.

“While there is still plenty of room for growth, this is an excellent indication of how the housing recovery has begun to take hold across more geographical areas,” “said Rick Judson, chairman of the NAHB and a home builder from Charlotte, North Carolina.

The NAHB pointed out that markets new to the index this month spanned several regions of the country, including such metros as Macon, Georgia; St. Cloud Minnesota; Brownsville, Texas; Spokane, Washington; and Milwaukee, Wisconsin.

However, NAHB’s chief economist, David Crowe, pointed out that “[t]he dramatic increase in markets qualifying for the IMIin September was partly due to a recent improvement in the way that Freddie Mac measures home prices.” NAHB relies on Freddie Mac’s housing data for its index.

“Even so, the broadened list of metros on the IMI continues to demonstrate the slow but steady gains that individual housing markets are making to bolster the national outlook,” he added.

In fact, all 50 states have at least one county represented on the index, and 23 states have at least one new market on the index this month.

Salinas, California, outranks all other metros on the index in terms of permit growth from its trough with a 44.2 percent rise.

Phoenix, Arizona, ranked highest for price growth with a 41.5 percent increase from its trough.

Midland, Texas, has experienced the greatest employment growth of any market on the index—a 33.5 percent rise from the market trough.

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Outer Banks Board of Realtors June Statistics for 2013

The Outer Banks Board of Realtors just put out the June statistics.  Please see the full report below.

HOUSE FIRES in Carova broke out at 4:45 am this morning 6/17

News Channel 3 posted this online this morning.

Two homes destroyed by an early morning fire in the Outer Banks

Posted on: 10:59 am, June 16, 2013, by Antoinette Ramseur, updated on: 03:47pm, June 16, 2013

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Picture courtesy of "Oregon Inlet Idiots" facebook page

Outer Banks, NC – Two homes in Carova were destroyed by fire and a third was threatened early Sunday morning.

Fire units from Corova Beach, Corolla, Duck and Currituck responded to the area of Mile Post 22 around 4:45am to find heavy smoke and fire coming from the two homes.

One of the homes was occupied at the time of the fire and everyone made it out safely.

The third home that was threatened was occupied as well. Everyone inside that home was evacuated.

No injuries were reported and the cause of the fire is under investigation.