Why Buy an Existing Home Instead of a Lot?

Why buy an existing home instead of a lot to build on? The answer boils down to cost.

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Why buy an existing home instead of a lot?

The answer boils down to the price of existing homes versus what it costs to build. Say you consider buying an $85,000 lot. On top of that, you have to tack on development costs (clearing trees, installing a septic tank, etc.) and building costs. Furthermore, over the past four or five years, building material costs have risen—most builders are quoting anywhere between $160,000 and $225,000.

That’s a pretty wide range, so let’s give a couple of examples for scale. If you’re building a little beach box with just carpet and vinyl flooring and maybe upgraded countertops, you’ll pay closer to $160,000. If you’re installing heart pine floors, upper-end cabinets, tile surrounds in your master bedrooms and bathrooms, etc., your price will be closer to $225,000.

So if you buy that same $85,000 lot, but you find out that building a 2,000-square-foot home would cost $200,000, that’s when things start to get expensive. This is why single-family home sales are far outpacing lot sales in our market. 

Over the past four or five years, building material costs have risen—most builders are quoting anywhere between $160,000 and $225,000.

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A lot of people are curious about buying lots because between 2008 and 2014, you could buy one for as little as $20,000. However, that’s not the case anymore.

That being said, lots are still a viable long-term investment if you’re thinking of building a beach house, so give me a call if you want to get the ball rolling on this project.

As always, if you have any other real estate needs, feel free to reach out to me as well. I’d love to help you.

It’s Always a Good Time to Buy in the Outer Banks

Is the winter getting you down? Trade the cold for the beautiful, sunny beaches of the Outer Banks.

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Why would you want to buy a house on the beach during this time of year? Though people think the market typically cools off in the winter months, that’s not the case here. 

The soft, silken sand of the Outer Banks can wash away the stress of daily life.

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The weather has been remarkable, but I’ll let you see that for yourself in today’s video.

The soft, silken sand of the Outer Banks can wash away the stress of daily life, so why wait to jump into the market?

Reach out to us and we’ll be more than happy to get you started on your home buying journey. We look forward to hearing from you soon.

The Advantages to Buying a 2nd Home in North Carolina

There are a number of advantages and benefits of purchasing a second home in the Outer Banks area of North Carolina. Today I’ll be answering some questions to help detail exactly what those are.

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In today’s Facebook Live discussion, I’ll be answering a range of questions about the advantages of buying a second home in the Outer Banks of North Carolina and what it takes to do so.

For your convenience, I’ve provided timestamps below so you can navigate the conversation in the video above at your leisure:

• 0:40—Some important factors to consider when looking to purchase a beach house in the area
• 1:15—The steps for first-time homebuyers
• 2:00—How this experience differs for an experienced homebuyer
• 2:40—Are there issues with purchasing a beach house?
• 3:49—Who should people reach out to for more information?
• 4:45—Buying a home here as a second home vs. a vacation rental
• 6:00—Potential challenges in the second-home market

Our job as Realtors is to give you the information you need to make an educated, informed decision about how to proceed in our market.

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Hopefully you found this information helpful and can now consider purchasing a second home or vacation rental in the Outer Banks with knowledge on your side.

If you have any questions or would like to speak with me in more detail about purchasing a home in our area, you’re always encouraged to reach out to Colony Realty. I’d be glad to respond to your inquiries as quickly as possible.

6 Ways to up Your Chances of Securing a Vacation Rental Property

Today, let’s talk about the six ways you can improve your chances when searching for a vacation rental property.

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Today I’ll be covering the six ways to up your chances of buying your first vacation rental home. 

1. Find an agent with a lot of experience and a history of success. Purchasing a vacation rental home is likely not the time to entrust your transaction to a new agent. This kind of purchase is a major investment, so it’s important that you work with a full-time, dedicated agent. 
2. Work closely with a local lender. When you work with a lender for this kind of purchase, it’s important that they understand the vacation rental market. Also, I definitely recommend working with someone local. Once you’ve begun working with this lender, get a pre-approval letter. In our fast-paced market, this pre-approval letter will help set you ahead of the competition. 
3. Consider a fixer-upper. This can be a great option for those who don’t have the means or aren’t interested in working in a higher price range. The use of a rehab loan can make the transition into this investment much smoother. 
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Transitioning neighborhoods present a great opportunity for investors.

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4. Consider a property in a transitioning neighborhood. To illustrate why this is a good idea, I’d like to give you a key example. Years ago, Salvo had a very eclectic mix of homes. Then, all of a sudden, beautiful properties began popping up all around in that area. Transitioning neighborhoods present a great opportunity for investors, since they allow you to make a less expensive purchase and then capitalize on later improvements. 
5. Reconsider your budget. If you’re able to do so, going slightly above your current price bracket could really open up your options.
6. Talk to your lender about how to earn extra leverage. When you work with a lender who has experience in the vacation rental market, they will be able to provide key insight on how you can gain more leverage. 

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.