Tax Value versus Market Value

There’s so much confusion about the difference between these two figures, yet there is a HUGE difference between them. In North Carolina, the State is required by law to re-assess every 8 years. In Dare and Currituck County, they ONLY re-assess every 8 years. I’m guessing it’s because of the limited staff the County keeps on hand and what a huge project it is. But that’s just a guess. I don’t know why they don’t do it more often than required. However…that’s beside the point.

In daily conversations I come across homeowners who think that their current TAX ASSESSED VALUE should be what the MARKET VALUE is. Well, I completely understand that line of thinking. I mean, after all who wants to pay more taxes than they should and if you’re tax bill is based on the home being worth more than you could sell it for, then that’s cause to be concerned. Let’s just keep in mind there are two parts to the tax formula. The assessed value AND the tax rate.

You see, each year the County creates their budget and based on that they figure they need to collect a certain amount of taxes from various places in order to meet that budget. They need a certain amount from sales tax, occupancy tax, transfer tax and real property tax too. So look at it this way…if they lower your tax assessment to be more in line with today’s market value, then guess what is going to happen to your TAX RATE? That’s right…it’s going up because regardless of what your home will sell for in today’s open market, they still need to collect X number of dollars from you to meet their budget. Your tax bill will be the same (if not more.) Let’s look at this example:

Currituck County tax rate is currently $.32 per $100.

Tax Value of $500,000 x $.0032 = $1,600 – Now let’s say they reduce your assessment to be more in line with today’s MARKET value, they have to raise your tax rate to something like $.43 per $100 in order to collect the same taxes.

Tax Value of $375,000 x $.0043 = $1612.50 – Is that better? At least now your tax assessment is more reflective of market value. This is likely what will happen this year as the re-assessment is due to happen for 2012.

So before you get upset about the sales price your agent quotes you because it’s so far off the tax value, just keep in mind these two definitions for clarification.

Tax Assessed Value – The value the tax department places on your home for the purpose of assessing taxes to meet their annual budget.

Market Value – What a buyer is willing to pay and a seller willing to sell for and a lender willing to lend on a property in the market today.

To find out YOUR market value today, contact me for a free analysis.

Best Buys on the Outer Banks!!!

Here are this week's SIX best deals on the Outer Banks!!

To see each listing, simply click the MLS number and it will take you directly to the property information!
Don't forget to bookmark this blog, rss feed, like my Facebook page or ask to join my special email list to be the first to receive the best deals in the area!

Great deals don't last long, so don't miss out!!

Contact me today for more information on  
These great deals or for your private showing!

MLS#71113 – This home is located in the heart of Duck. With a short walk to the shops or the beach, it’s a real winner!

MLS#71069 – Custom home in The Currituck Club. Great amenities and a lot of upgrades.

MLS#71077 – This rare oceanfront lot is in Sanderling. One of the last lots left in this area.

MLS#71082 – Nestled in the trees in a great neighborhood and for under $225,000!

MLS#69788 – Your own 26 acre property just minutes from the beach! You’ll love the private pool, elevator and many more upgrades in this custom home.

MLS#69486 – This cute beach cottage has been recently updated. Enjoy one floor living at the beach!

What do you have planned for your Outer Banks trip?

So you’re planning a trip to the beautiful Outer Banks of North Carolina this summer? Great, we are excited to have you. The Outer Banks is a family oriented beach destination. There are so many wonderful activities for the entire family to enjoy during your stay. I’ve highlighted a few for this blog and am offering website links to get more information.

1. www.outerbanks.org – Whether you’re a seasoned visitor or a first timer, this website is an excellent resource for everything Outer Banks!

2. www.ncaquariums.com – For the local aquarium, click on Roanoke Island for daily schedules and events. It’s a wonderful place for the whole family. You’ll also see a link for Jenette’s Pier which was completely redone and is now OPEN for the season. It’s definitely worth a trip!

3. www.thelostcolony.org – This year marks the 74^th season of the Lost Colony outdoor play. For times and tickets visit the website.

4. www.scarboroughfaireinducknc.com – If you’re staying in Duck or Corolla, you have to come to the Faire Days Festival held each Wednesday from 2 to 7 through August 31^st. You’ll have plenty to see and do for the entire afternoon along with some great food!

5. www.whaleheadclub.org – If your destination is Corolla you’ll definitely want to visit the Historic Whalehead Club. They will have fireworks for the 4^th and also offer Wednesday Wine Festivals from 3 – 7 pm. Check out the events calendar for a complete list of summertime activites.

If you’d like additional information about activities I haven’t listed here, please contact me and I’ll get you the details you need.

Have you ever hunted Beach Glass on the Outer Banks?

Beach Glass on the Outer Banks

One of my favorite past times here on the Outer Banks is searching for beach glass.  I must be one of the luckiest girls on earth because I landed a beach house in Duck only 4 lots from the ocean!  So you can imagine each morning I’m right there on it for my daily walk.  Of course I have to take the dogs for their exercise too and they LOVE it. 

The Duck Research Pier is about 12 minutes north, so that’s our usual route.  We strut our stuff with the nice ocean breeze and waves crashing at our feet up to the pier and back just about every morning.  Along the way I have time to enjoy the beauty of nature, do some deep thinking, talk to God AND look for beach glass.

In case you’ve never been on such a hunt, there are a few tricks.  First, you have to look for big shell beds.  Fortunately there are several along our route.  The only other thing you need is patience as you scan the thousands of shells, rocks, sand and other surprises looking for your gem! 

Special Tip – having dogs with you is not good for item two.  They don’t seem to be very patient while you search, especially when distracted by a sand crab running across the sand just out of their reach.  Suddenly your arm is yanked, you fall over, and…well I digress!

The point is, once you find your first piece it’s really exhilarating.  I mean, it’s just a piece of old glass (probably from some beer bottle) that’s been washed around on the ocean floor…nevertheless it’s still a rare treasure and a fun exhibition.

Interview with Max the Peek-A-Poo

Interview with Max the Peek-A-Poo

I’m pleased for you to meet Max Matteson, adorable pup and companion to Ilona Matteson who is a real estate agent on the Outer Banks.  Max is a Pekinese and Poodle mixed pup who weighs about 17 pounds.  He is an active little guy and I think you’ll enjoy meeting him!

Max, tell us a little about yourself.

Max:  Well, I’ll be 4 years old on July 24^th.  I was adopted by my Mommy in October of 2007.  We first lived in Richmond for a little while and now we are in Duck, NC.  Our house is close to the beach and Mommy walks us every day on the beach.  I love to chase the sand crabs!

You mentioned “us.”  Is there another pup in the house?

Max: Yes.  Mom’s boyfriend Charlie has a dog named Rajah.  He’s a big Pit Bull but he’s really nice.  Really, I’m in charge even though he outweighs me by 40 pounds!  He’s just a big softie.  I like having a brother.

So Max, what kinds of things do you like to do?

Max: Well, I like to play.  A LOT!  Mom always has toys for me and we play tug of war and fetch.  I like to sit in her lap and be close to her too.  Mom is a great cook so I like the rare times when she lets me have a quick bite too!

Do you know any tricks?

Max: OH YESSSSS!  My Mommy was very diligent in teaching me early on some great tricks.  I can do the basics you know…sit, shake, high five, roll over (in both directions), bark, heel, sit up, stay.  I can even do some really cool tricks like kiss (just the nose) and I also give hugs.  That’s Mommy’s favorite trick.  She always has me showing that one off.

Are there any challenges to being a smaller pup?

Max: Not really.  I kinda like it because I can hide in places that Rajah can’t get me.  Sometimes he wants to play when I’m tired and so I just go hide from him.  I also like being “lap size” because that’s my favorite place to sit.  Being small, I also get lots of “ooohs” and “ahhhs” on how cute I am.  Most people think small dogs are yappers.  Not me.  I don’t like all that noise.  I only bark on command or to let Mommy know of danger or guests.  So all in all, I’m just fine with my size.

Anything else you’d like to share or talents you have?

Well, I guess the last thing is that I’m great at getting my photo taken.  Rajah never sits still, but when Mommy wants to take my picture, I just sit still until she says ok.  She loves that!  We have a lot of fun living at the beach and my Mommy gets to help lots of families buy homes on the beach too.  She talks about her job all the time and sometimes I get to meet her clients.  We have a really nice life!  I really like Charlie too.  It’s fun having a man around the house.  The 3 of us outnumber her!  (Charlie, Me, Rajah)

Thanks Max for your time.  Now go have a wonderful day!

Q & A with Ilona by MortgageRates.com

Ilona Matteson brings a wealth of experience and knowledge to the sales team at Beach Realty & Construction. As a former sales manager for Beach Realty and a former coach for the nationally acclaimed Mike Ferry Organization, Ilona knows the real estate business inside and out. In 2004, she was selected for the annual 30 Under 30 feature for Realtor Magazine and was also a licensed instructor employed by the North Carolina Academy of Real Estate. Ilona has a thorough understanding of market conditions and works diligently for her clients.

In our effort to give you the most up to date real estate information from all parts of the country, please join us in welcoming Ilona Matteson, “Your Outer Banks Real Estate Resource“.

How is housing affordability in your city?

I work and live in a resort market. Pricing here has dropped roughly 30 – 35% from its peak in 2005. The pricing correction in connection with today’s vacation rental ability make buying a beach home extremely affordable. We are seeing homes coming very close to paying for the majority of the annual expenses, which we haven’t experienced since 2001 or 2002.

What’s going on with down payments – are buyers having to make bigger down payments nowadays? And how does that affect the housing market?

Because most of our home sales are a second home or investment, a 20% down payment is required. That has not changed. However, what has changed is the actual dollar amount. Keep in mind, in 2005 putting 20% down on $535,000 (median sales price) was a lot more money to come up with than 20% down on $315,000 (today’s median price.) So once again, buying a beach home has become so much more affordable for people.

How can the homeowner know if this is a good time to refinance?

It’s really going to depend on how long you’ve owned the home and how much equity you have in it at today’s value. If you’re refinancing a second home or an investment, the bank will want the homeowner to have a large vested interest (20% to 30%) so it may require cash down for some.

Thank you Ilona for participating in our Q&A series!

I'm Going to Kick His ASK!

Today’s lesson…from a 3 year old…is that when a monster is coming after you…you better “kick his ask” or he will simply kick yours first! This is an interesting thought process…she’s clearly a go-getter. No waiting around for her. Now, I don’t know how old this little video is, but I saw it for the first time last night and it had me in tears I was laughing so hard!

So what can we learn from this?

· Have a plan. By planning ahead she knows exactly what to do! She’s clearly thought out the whole process and if Mom had kept filming and asked, we could have heard the entire scheme.

· Confront your fears. Aren’t most 3 year olds SCARED of monsters? She’s clearly not and will prosper from not letting a simple fear stop her! Do you think she would take NO from a prospect? HA!

· Share your goal. Having a goal to kick the monster first and then sharing it with Mom, someone who loves and supports her, only reinforces her desire. As adults we have to be careful who we share with and then once we do, it really brings life to our dream!

Hope you laughed as hard as I did!

Best Buys on the Outer Banks!!!

Here are this week's SIX best deals on the Outer Banks!! To see each listing, simply click the MLS number and it will take you directly to the property information!

Don't forget to bookmark this blog, rss feed, like my Facebook page or ask to join my special email list to be the first to receive the best deals in the area! Great deals don't last long, so don't miss out!!

Contact me today for more information on these great deals or for your private showing!

69300 – Extremely cute and now very affordable Mirage Unit in Corolla Light!

69614 – A very affordable way to own 1/5 ownership in one of Duck’s premier locations.

69653 – Great price on a year round or rental property, YOU CHOOSE!

71035 – So close to the beach and in prestigious BUCK ISLAND!

71045 – Very cute Oceanfront condo in Duck for under $350,000

61953 – Oceanside in Duck for under $300,000! Unbelievable…is it 1999 again?

Looking for fun in Corolla this week?

Come out to the 10^th Annual Arts Festival sponsored by The Whalehead Club. It’s FREE ADMISSION with a $5 per car parking donation requested. The Currituck Heritage Park is located just past MilePost 11 on Highway 12 North.

Wednesday June 22 from 10 am to 6 pm

Thursday June 23 from 10 am to 5 pm

There will be over 100 artists with mediums ranging from watercolors to clay, photography to haberdashery, wood to stained glass!

Features

Silent Art Auction

Baked Goods Sale

Local Authors Book Signing

Musical Entertainment

The Lost Colony Actors

Fabulous Food

Magic Mike the Clown

NC Marionette Theater Puppets

Rock Climbing Wall – Wednesday

Pony rides – Thursday

Tours of the Historic Whalehead Club

All proceeds are to benefit the Whalehead Preservation Trust.

This will be a fun FAMILY event!

Best Buys on the Outer Banks!!!

Best Buys on the Outer Banks!!!

Here are the 6 best buys on the Outer Banks!! To see each listing, simply click the MLS number and it will take you directly to the property information!

Each week I will be featuring the SIX best deals on the Outer Banks!! So, bookmark this blog, rss feed, like my Facebook page or ask to join my special email list to be the first to receive the best deals in the area! Great deals don't last long, so don't miss out!!

Contact me today for more information on these great deals 
or for your private showing!

MLS#70993 -- NEW LISTING!!

Don’t let the exterior of this home fool you. This is a newly remodeled beauty! Granite countertops, excellent pool and entertaining area and more!

MLS#70981This is an absolutely gorgeous home with an excellent rental in upscale Spindrift! It’s only 3 lots off the ocean with phenomenal views. Don’t look, you’ll want it!

MLS#70973You won’t believe an oceanfront home for under $400K! The beach in Nags Head is currently undergoing nourishment, prolonging the life of this newly remodeled beach home for years to come.

MLS#70974

Canalfront luxury in Southern Shores. It’s serene location will win you over instantly!

MLS#70978

This home is bright and cheery. Very easy beach access.

MLS#70592Unique oceanfront opportunity in Southern Shores for under $625,000! This property is newly renovated and ready for you to see.

If you PRICE RIGHT...they will come!

If you Price Right…they will come!

There’s so much talk today about pricing your home right, pricing it to sell, lowering the price…price, price, price, price, PRICE. Well folks, there’s so much truth to it. However, rather than type up a long dissertation about how buyers shop, the definition of value and my favorite, put yourself in the buyer’s shoes, I’m going to just give you plain old facts.

See, the numbers don’t lie. The reality is the price of your home has dropped. It doesn’t matter how much better your home is than the neighbor’s, buyers are bargain shopping. Once you do finally sell your home, you’ll be doing exactly the same thing!

So take a look at REAL LIFE examples below of how much time it took these sellers AND their agents to get the right price on the home….then, LOOK HOW FAST IT SOLD! Once you read this report, draw your own conclusions. If you’re really smart, call your agent immediately and drop the price!

MLS#        DOM  OLP             PRD           UCD                UCP       Sold Price

49420          1408  $459,900     1/3/11           2/1/11           $329,900     $300,000

56621          960     $729,000     8/14/10        10/4/10        $499,000     $475,000

58750          904     $729,999     3/2/11           3/22/11        $535,000     $517,000

58643         878     $339,000     10/14/10      10/24/10      $228,000     $206,000

59547         866     $1,099,000  1/27/11        2/26/11        $775,000     $700,000

60181         812     $875,000     2/17/11        3/25/11        $599,000     $550,000

59663         785     $215,000     2/4/11           2/25/11        $125,000     $117,000

60660         762     $579,000     2/25/11        3/16/11        $489,900     $475,000

59676         755     $359,900     8/12/10        9/17/10        $239,900     $230,000

61567         738     $475,000     11/11/10      3/30/11        $329,000     $319,000

60873         722     $1,750,000  1/3/11           1/27/11        $1,3M       $1,256,000

61600         676     $649,900     12/23/10      2/18/11        $399,000     $392,500

64943         444     $625,000     2/24/11        3/22/11        $485,000     $470,000

64410         436     $399,000     1/24/11        2/9/11           $315,000     $315,000

64511         401     $435,000     3/12/11        3/18/11        $399,000     $375,000

65995         347     $219,000     2/2/11           3/15/11        $175,000     $140,000

67319         240     $379,000     12/6/10        1/8/11           $299,000     $277,000

65718         438     $599,000     4/22/11        6/10/11        $524,900     Pending

67178         302     $1,535,500  4/8/11           5/6/11           $956,700     Pending

69264         132     $415,000     6/2/11           6/9/11           $337,000     Pending

68623         204     $4,500,000  5/31/11        6/8/11           $1,799,000  Pending

*This is just a sampling of the nearly 600 homes sold on the Outer Banks so far in 2011. There are pages and pages and pages of additional examples.

Key –

MLS# - The number given to the listing when it enters the Multiple Listing Service

DOM – The number of days the home was on the market, including the time it took to close the deal.

OLP - The Original Listing Price for the home when first listed for sale

PRD – The date of the price reduction causing the sale. Most homes had multiple reductions over time

UCD – The date the home went under contract

UCP – The price the home was listed at when the contract to purchase came in

Sold Price – The price the home eventually sold and closed for

For a comprehensive analysis to find out what your home can SELL for, contact me today!

New Price for 103 Beachcomber Court, Duck, NC

103 Beachcomber Court

Duck, NC 27949

Duck Oceanside / Subdivision: Four Seasons

Now $635,000

MLS# 63641

6 Bedrooms / 5.5 Bathrooms

This is a REALLY great deal in Four Seasons with the New PRICE!
Very nicely furnished and extremely clean home. 2 bunk rooms and game room on ground level. 4 nice sized masters on 2nd level. 2 bedrooms with deck access. 3rd floor with cozy great room, large windows, lots of light! 2 dining areas, screened porch and open deck overlooking pool. Covered deck on the front of home. New carpet in August. 3rd floor tiled for easy maintenance. A must see!

The Outer Banks Distressed Property Report

Here are a few interesting facts about Distress Sales on the Outer Banks of North Carolina.

If you’re thinking about buying a distressed home or condo:

• Right now there are only 79 Active homes or condos for sale that are Bank Owned or Foreclosures.
• There are 171 Active homes or condos for sale as a Potential Short Sale.
• That means our Active Distressed listings are only 13% of all Active homes or condos for sale.
• Last month in Dare County alone 39 new properties were foreclosed on. That’s up from April.

If you’re wondering how well these homes or condos are selling:

• Since Sept 2008, 731 homes or condos sold that were Bank Owned or Foreclosures.
• Since Sept 2008, 360 homes or condos sold that were a Potential Short Sale.
• That means of all sales of homes and condos from Sept 2008 to now, 32% were a distressed sale.
• Only 22 Bank Owned homes have sold in Duck.
• Conversely, 71 Bank Owned homes sold in Corolla.

For a list of Bank Owned homes for sale, check out my website or contact me!

National Home Prices Hit a New Low in 2011 First Quarter

Are you on the fence about whether to sell or wait it out? This week’s headlines might help make your decision.

According to the S&P/Case-Shiller Home Price Indices - National Home Prices Hit a New Low in 2011 first Quarter. David M. Blitzer, Chairman says “Home prices continue on their downward spiral with no relief in sight.”

According to Brett Arends at MarketWatch - It’s official. The house price collapse is now worse than it was during the Great Depression (percentage wise). Oh and in case you’re wondering, back in the Depression, it took 19 years for house prices to recover to their previous peaks.

Right now, we’re experiencing pricing adjustments back to about 2002. So if you purchased before then, it could be a good idea to sell before it drops further.

Normal inventory on the OBX is around 1200 properties…today, we’re over 3300. Basic economics has always told us higher supply equals lower demand. Until inventory levels recover, pricing will be low. It would take 20 months to deplete the inventory we have right now, IF nothing else came on the market.

I know what you’re thinking - Holy Smokes…is there a silver lining at all? Yes. Housing is now cheap. Super cheap. According to Capital Economics housing is now 24% undervalued, and is the cheapest it’s been in thirty-five years nationwide.

So what’s the point to this video? If you’d like to sell your home, we have 160 QUALIFIED buyers each month looking for the best properties! That’s up from last year, which was up from the year before as well.

Bottom line if you ARE thinking about selling go ahead and price it according to today’s market and reinvest your cash into something that will actually GROW over the next few years. You’ll get your money back. Waiting it out is not a good strategy, especially if the home is costing you out of pocket each month. What’s the sense in waiting?

If you DON’T need to sell…fantastic. Keep enjoying your vacations here and hold on for the ride!

634 Grebe Court, Corolla, NC

634 Grebe Court, Corolla, NC
6 Bedrooms 4 Bathrooms

This is the best time to buy an investment property on the Outer Banks. With today’s prices and rates you CAN find a home that will essentially pay for itself!
Even with taking 2 prime weeks for yourself, 634 Grebe Court can be yours with less than $2500 out of pocket each year (with 25% down at 5% interest).

Call today for more information and a cashflow analysis.

$499,000 MLS #64832

Check the location on this great beach home. Backs up to the Green Conservation Area for privacy as well as situated on a nice cul de sac. Neighboring homes are not permitted private pools. This is your classic beach rental home with proof of up to $44,000 in rental income potential. Easy walk to the beach and all the amenities of a prime investment property. Recently painted, this home has been well cared for. Ground level gameroom with 2 bedrooms. Mid level with TV area and 3 bedrooms and main floor with open living space, dining room, kitchen and master. Enjoy the top floor deck and ocean views.

884 Whalehead Drive, Corolla, NC

884 Whalehead Drive, Corolla, NC 27949
$475,000
5 Bed, 4.0 Bath
2620 SF
This home is very well maintained. The ground floor offers 2 bedrooms, 2 full bathrooms, game room, wet bar area and refrigerator. The large queen bedroom has a private bathroom and sitting area. The top floor offers 3 additional bedrooms and 2 bathrooms, kitchen, dining and great room. There is a hot tub on the top floor deck, which wraps around from back to front. A screened porch is located on the back of the home off the kitchen. Tile floors upstairs for easy maintenance. New carpet in the rest of the home. The twin rooms upstairs have built in dressers in the closet for space saving. Nicely landscaped and plenty of room for a pool.