June OBX Update

June 16, 2025 By Ilona

We want to list our home,
but what if we get a lowball offer?

This is a common question I get, especially in a market like today.  For the first time in many years, last week we clocked in MORE price reductions than new listings in a month.  That’s a pretty significant milestone.  The peak for pricing has officially passed.  So what happens when a market peaks?  As you know, what goes up must come down.  This never takes place over night, so don’t sweat just yet.

The good news about this market cycle is we have a pretty decent blueprint of what happened during the last cycle to give insight and information.

Here are the basics:

2005 – Prices hit the peak

2008 – 2011 – These years we saw active declining in pricing (not overnight)

2012 – 2019 – These years very little changed, it was stagnant

2020 – Cycle started all over again.

Right now, I would say we are about the same as 2009.  We knew there was some instability in 2023, it really started to show up in 2024 and we are very aware in 2025.

In this cycle, we may not bottom out as quickly as last cycle because the inventory levels aren’t rising like they normally would in a down cycle.  So it is my prediction that the decline may take more than 3 years to occur.

All of that aside, if your plan is to “wait it out”, you need to really consider the cycle history and how long that could actually take.  Spoiler alert:  It’s always longer than you think.  Having been through this before, I can tell you, next year is not going to be better.

So, now what?  How do we get the most for the home in the current cycle?  Let’s look at what the stats tell us…

The majority of homes priced well and in demand are still selling within 30 to 60 days.  Pricing “higher to negotiate” will likely cost you time and money.  This is not the type of market for that strategy.  If you get an offer, even a low offer here’s what you want to do.

  1. Revisit the recent comps. Did other similar homes sell, or reduce to a level that the offer now makes a little more sense?  This does happen, especially if you’ve been on the market for a while.  If your agent is not keeping you up to date on this information, ask them to.
  2. Consider making a counteroffer anyway. It’s a tricky market with not a whole lot of certainty as to what is ahead.  Do not take it personally!  If you were on the buying side, you would probably be doing the same thing.  Instead, look at it big picture and keep the conversation going as long as possible.
  3. Get creative! Sometimes, price isn’t the only issue.  Is there another component of the sale you could use to gain some ground and make the offer more enticing to the buyer without cutting the price?  Price is a big factor, but sometimes not even the most important one.

Now is the time to be aware that lower offers are going to be the norm.  We are back to over 70% of all properties selling under asking price.  That’s just where we are.  It’s business, after all.

Hiring the right agent will make a big difference in your bottom line. 

Let me know if I can put together a winning strategy for you!

Filed Under: Home Buyers' Tips & Advice, Home Sellers' Tips & Advice, OBX Real Estate News & Data, Outer Banks Good Living, Uncategorized Tagged With: , , , , , ,

Outer Banks Area Update

December 2, 2013 By Ilona

I hope your pre-holiday season is going well.  We’ve had quite the cold spell hit the entire East Coast this week and who knows, we could even see another flurry or two here at the beach.  Just hope it doesn’t stick!  I have a few things to update you on this month.

Flood Insurance – Bipartisan legislation has just been introduced in Congress to remedy the unintended consequences of Biggert-Waters.  Senate Bill 1610/House Bill 3370 – Homeowner Flood Insurance Affordability Act of 2013 – will delay the loss of grandfathering for four years until several steps are taken to address the affordability of coverage. For more information and what you can do to help read the full article here.

Beach Nourishment – One step forward.  It’s looking really good for nourishment projects in Kill Devil Hills, Duck and Kitty Hawk.  Of course it takes a while to get the projects actually started.  KDH put together a really great page of FAQ’s that you can read here.

Loggerhead Turtles – Perhaps two steps back. Never a dull moment in the coastal/wildlife arena.  The push to throw a wrench in the beach nourishment plans have already begun.  Read more here.

Holiday Activities – If you’re going to be on the Outer Banks for the holidays this year, here’s a website to check for some local activities you might want to check out.  Be sure to click on the “Events” tab. http://www.outerbanksthisweek.com/things_to_do/

Filed Under: Home Buyers' Tips & Advice, Home Sellers' Tips & Advice, OBX Real Estate News & Data, Outer Banks Good Living Tagged With: , , ,

CALL YOUR US SENATORS AND REPRESENTATIVE TODAY AND TELL THEM TO SUPPORT AND CO-SPONSOR THESE BILLS!

November 27, 2013 By Ilona

Senate Bill 1610/House Bill 3370 – Homeowner Flood Insurance Affordability Act of 2013

In North Carolina, please Contacting Senator Kay Hagan: (202) 224-6342 and Senator Richard Burr: (202) 224-3154.

To find the contact number for the Senator and Representative in your State/District go to:

www.senate.gov
www.house.gov

WHY SHOULD I MAKE THIS CALL?

Current Local impact examples:

LOWER MARKET VALUE?: Bank owned property (land and house) for sale in Avon at $189,000. Home was built in 2005 in an AE zone. Property is Sound side, three rows back from the water, is elevated and did not flood in Hurricane Irene. Prior owner paid $1,200 a year for flood insurance. 2006 revised flood maps put the house in a VE zone (highest risk zone). Prior owner was able to keep the rate premium based on the AE zone. Due to foreclosure, the bank did not carry a flood policy. Potential buyer was quoted $15,000 for a new flood insurance policy. Buyer walked away and a cash buyer purchased the property for $149,000. The new owner was not required to purchase a flood policy since there was not a mortgage on the property.

OUT OF BUSINESS?: An older motel property on the oceanfront in Kill Devil Hills was built before the first flood maps became effective. The owner received a discount on flood insurance and paid approximately $5,600 a year in premium. After asking his insurance agent what his ultimate flood premium would be after phased in rate increases, he was told approximately $55,000.

FORECLOSURE?: A home built prior to 2006 flood maps, located in an AE zone. Owner pays $800 a year for flood insurance. 2006 maps put the home in a VE zone. Owner was quoted $21,216 a year for $250,000 of structure coverage, $100,000 of contents coverage and a $10,000 deductible under the VE zone risk. The owner states that this will make the house unsellable and unaffordable to keep.

A CURRENT OWNER TRYING TO SELL THEIR VACATION PROPERTY RECEIVED THIS NEWS! Their policy is grandfathered to an AE Zone and their renewal premium is $363 a year. If they lose the grandfathered option the renewal would be rated to their current VE Zone and the premium will be $5,870 a year.

REASON… While the law phases in rate increases on older structures, it also removes the grandfathering option when new maps show a change in elevation or flood zone. Structures that weren’t in a flood zone when built may now be required to carry flood insurance. Homes that were built to flood standards in place at the time of construction will now be required to pay to the risk shown under any future revision to the flood map. Revised flood maps will be released in NC tentatively July 2014 but properties where no flood insurance policy exists are already being impacted when a new policy premium is quoted.

As REALTORS we have a responsibility to inform you of this change in the law and how it may impact you.  We continue to fight this law by asking for a total delay of the implementation.  BUT, we can’t do it alone.  We need you! It will take a majority of all US Senators and Representatives to reverse the impacts of this law.

(Written by the Outer Banks Association of Realtors Legislative Sub-committee on Flood Insurance Affordability)

Filed Under: Home Buyers' Tips & Advice, Home Sellers' Tips & Advice, OBX Real Estate News & Data, Outer Banks Good Living Tagged With: , , ,

Flood Insurance Update

October 3, 2013 By Ilona

Recently WAVY TV-10 interviewed several locals involved in fighting the Biggert-Waters Act of 2012.

To see the Flood Insurance segment WAVY TV10 did click here.   There are a couple of different segments so use the cursor to the right to scroll through the coverage.

The segments were edited from lengthy interviews and did not focus attention on the detrimental impact of the loss of “grandfathering”. Under the Biggert-Waters Flood Insurance Reform Act of 2012, when flood maps are revised and updated and the zone and base flood elevation changes on a structure – then the policyholder has to pay the rate that corresponds with that risk. What this means is that if your home was built to or above the FEMA base flood elevation at time of construction, and a new map shows that your home is now in a riskier zone (VE, AE) and below base flood – you could see a premium increase of up to 2000%. The increase would be phased in over five years. Preliminary flood maps are expected to be released in various counties in North Carolina in 2014 but won’t be final and approved until 2015.

Additional concern for selling a home with a changed flood zone or base elevation.  The buyer does not get the 5 year phase in, they are billed the entire new risk amount upon purchase.  This will greatly affect prices and qualification of buyers.

Affordability studies MUST be done.  It doesn’t seem that Congress took this into consideration before passing this bill.

We need everyone to CALL TODAY.

Although there is a government shutdown, you can still contact your representatives regarding changes to the National Flood Insurance Program.

Call Senators Burr and Hagan’s office to support our efforts to delay implementation of the bill.

Please take 5 minutes and contact Senator Richard Burr’s Office (202) 224-3154 and Senator Kay Hagan’s Office (202) 224-6342.

Ask to talk to their Chief of Staff. You may get voice mail – please leave a message with the following three points:

   1. I am ________________from _________ and I am asking you to first “do no harm”.

   2. Delay the rate increases to flood insurance created by the Biggert-Waters Act until the affordability study is completed.

   3. Amend the Act to create true affordability and fairness for all homeowners.

 

Filed Under: Home Buyers' Tips & Advice, Home Sellers' Tips & Advice, OBX Real Estate News & Data Tagged With: , , ,

Summer is officially here in the Outer Banks!

June 6, 2013 By Ilona

While the calendar may say summer begins June 21st, locals and visitors would disagree! Memorial Day weekend has come and gone and we are in full swing here on the Outer Banks. There are just a few noteworthy items to report this month.

Mid-Currituck Bridge – Recently H817 was sent back to the NC State Senate for discussion. This bill basically removes the gap funding for the bridge among other projects. The likelihood of this bridge being built is fading more and more. If you are a supporter of the bridge you can voice your support here: http://www.buildthebridge.org

Dare County Tax Rate – The Board of Commissioners approved a 3.25% tax hike for Dare County property taxes recently. When property values declined on average 29%, the rate needed to break even at the previous budget would have been 39.75%. This change will make the new tax rate for the county at 43 cents per $100 of value.

Beach Nourishment – A $20 million beach widening project was approved in Kill Devil Hills in mid May. Duck is also looking into a project to pump sand onto nearly 2 miles of beach there. As well, Dare County is hiring a firm to design a project for Rodanthe and Buxton.

Flood Insurance Update – Your help is still needed to get some changes made to pending flood insurance rate hikes. My recent blog post breaks down new information obtained by our local Association of Realtors.

Buying or Selling – If you have any questions about the real estate market for the summer months on the Outer Banks, be sure to contact me. Having had a slightly slower spring, we are expecting higher than normal numbers for summer. We know rents are strong, and that gets buyers excited! Let me know how I can help.

Stay cool!

Filed Under: OBX Real Estate News & Data, Outer Banks Good Living Tagged With: , , ,