July 5, 2011 (Nags Head, NC)

“With a solid background in vacation rental management operations, we are excited about the continued growth and success of Resort Realty with Stuart leading the charge!”says Michael Harrington, CEO of Resort Realty.

During Pack’s nine years at Hatteras Realty (based in Avon, NC), he held positions of Director of Accounting to Vice President and General Manager overseeing approximately 575 vacation rental homes.  In addition, Pack was most recently the COO and General Manager at Vacation Rental Pros^LLC, in St. Augustine Beach, Florida, in charge of all day-to-day operations. 

“Resort Realty is an industry leader and is committed to “A New Generation of Vacation Excellence”.  I personally agree and will promote this philosophy. Furthermore, I will support Resort Realty’s mission for clear communications, excellent maintenance and housekeeping, and maximum rental incomes for homeowners. I believe in great customer service and same day callback communications.”

With three offices and a staff of nearly 75 (including 35 sales agents), Resort Realty under the leadership of Harrington and Pack, will continue to grow by utilizing the most innovative techniques and unparalleled customer service.

“I worked with Stuart at Hatteras Realty and am confident that together with our dedicated staff, we will continue to foster admiration and respect among our peers and loyalty from our vacation rental homeowners and real estate sales clients,” states Harrington.

Pack has a true understanding of the Outer Banks rentals market having lived in the area for many years and is excited to return again to put his experience to work. He currently resides in Kitty Hawk with his wife Suzanne, a math teacher at Manteo High School, and four children. 

About Resort Realty: Resort Realty is one of the Outer Banks leading sales and rental companies of vacation homes.  Resort Realty’s Sales division is affiliated with the strongest global referral network, Leading Real Estate Companies of the World.  With offices located in Duck, Corolla and Nags Head, Resort Realty has served the area for 24 years. Resort Realty currently manages approximately 500 vacation homes on the Outer Banks, from Corolla to South Nags Head.  To learn more about owning or renting a beach getaway, visit www.resortrealty.com or call 800-458-3830. 

Media Contact:

Jenna Pempek, Marketing Director

(252) 441-5000, ext. 2048

Jenna.Pempek@resortrealty.com

                A number of factors went into his positive assessment, although he did raise concerns about gas prices and noted that the national debt is a sword of Damocles that must be addressed.

                Of more immediate and local interest, Kleckley discussed why visitation to the Outer Banks has remained consistently high. Even as the U.S. economy was shedding jobs with a national unemployment average that topped 10%, people continued to come and stay in Outer Banks vacations rentals.

                Kleckley pointed out, that neither Virginia nor Raleigh–the primary markets for this region–saw the large scale contractions other parts of the country did. Unemployment in the Raleigh area ranged from 6.3-7.5% and in Virginia, the state’s unemployment rate never rose above 8%.

                Retail sales–which are linked to tourism–will continue to grow. Even as the nation’s retail sales dipped 6-8% in a quarter, the tax revenues from this area did not show the same level of decline. Over the past two years, retail sales are showing 4-5% annual growth, significantly outperforming the national average.

                The housing market is showing signs of life again, although Kleckley did not see a quick recovery, “I don’t think that what you’re going to expect is something in line with the real boom that you had,” Dr. Kleckley said. “I think it’s very unlikely that you’re going to get back to the real high levels (of growth) that you had before.”

                He noted that the downturn on the Outer Banks did vary from both the national and state norms. “What you saw when you went through your bubble here, the (housing) downturn started much sooner and it was much more severe, than the rest of the state,” Dr. Kleckley said. “But since just about 2007, it’s been pretty steady in terms of existing home sales. In 2009 it (pricing) really hit bottom at the same time the state did, but the average value starting to recover. Not a whole lot, but recover nonetheless. North Carolina went up and then down and now it’s stayed down. It certainly doesn’t help because your levels are low, but you are doing better than the state as a whole.”

                “Existing home sales are recovering, and this trend will continue,” he added. “I think your real estate (recovery) is going to be something more in line with what you had before the boom.” 

                  Reviewing the data he compiled on the Outer Banks, Dr. Kleckley predicted a good season now and into the near future. “Things will start growing again. There will be a sustained level of growth from year to year,” he said. “The tourists will still come. But their patterns will remain conservative. Maybe they won’t go out to eat as much as they did before.”

     Since that time, occupancy has shown very strong growth, and 2011 looks to be the best year the Outer Banks has ever witnessed. Vanessa Riddick, Property Manager for Resort Realty, sees the trend first hand. “While we normally keep our overall occupancy proprietary, we can state that we are 10% ahead compared to 2010,” she says.

     It is not just the peak season, though, that is contributing to the growth in occupancy. “We are seeing a positive trend in occupancy during the shoulder seasons,” Riddick reports. “Fall is one of the best times to vacation on the OBX and each year more and more people take advantage of this.”

     What does this mean for the homeowner?

     Perhaps most importantly, it means a reasonable expectation of rental income. It also means, however, that the market is becoming increasingly competitive, and the most Outer Banks Rentals at the best prices are going to go to the homes that are the most attractive to vacationers.

     What are a few things can make a home stand out?  Eye appeal is important, have some sort of interactive map of the home so people know what they are getting, price the property according to property management guidelines. Pricing may be one of the most important things a property owner can do. 

     A property that is priced to high will not rent as quickly as similar properties priced correctly. To fill the vacancy, there is a good possibility that discounts will have to be taken and owner may not even get the recommended price. 

     The bottom line is, if that property was purchased for rental income, it is a business and must be treated as such–investments must be made, it must be maintained and effective marketing is essential.

     Keep in mind, that like any investment, the better return on the dollar the owner can show, the more value it will have. That becomes particularly important if or when an owner chooses to sell the property. “All things equal, the good rentals will . . . bring a quicker sale and a better price,” Linda Powers, of the Resort Realty Powers Team, says.

Nonetheless, there are some times that are better than others, and this is one of them for Outer Banks Real Estate.

There are a number of factors that have come together to create a buyers market that may never be seen again.  Market pressures continue to force sellers to keep prices competitive, there are a number of Outer Banks bank-owned properties and short sales still in the pipeline that will continue to influence how aggressive a seller can be, mortgage rates are at very favorable levels, sales have picked up over the past year, but there is still a tremendous backlog of unsold properties.

Which paints a great picture if you’re in a position to buy.

The wild card in this, though, is that the Outer Banks is a vacation market, and almost every home that is purchased, is for either investment or rental–very often both.  And the Outer Banks vacation rentals market has remained remarkably consistent and strong. In fact, at a time when the overall Outer Banks average housing sale price fell by 26.5%, the number of people visiting the Dare County grew by 15%.  Currituck County visitation figures, although not yet available, have closely paralleled its neighbor to the south.

Those occupancy numbers are reflected in the stability of the Oceanside market overall.  With the exception of Corolla (where the average sale price of over $1,000,000 in 2006 was probably not sustainable), every Oceanside real estate market has either shown negligible declines or has actually increased slightly in average sale price.

Not every vacationer stays on the oceanfront, of course.  The area between the highways (the Beach Road and Bypass) actually house more visitors than the oceanfront, and the average home prices in those areas is very attractive right now.

For buyers looking for a home that will be used primarily as a vacation home for the family, take a good look at properties on the west side of the Bypass. Primarily residential in nature, some of these properties offer spectacular vistas of the sounds.  Prices in these areas are very reasonable right now, and westside properties are largely isolated from the hustle and bustle of the Oceanside business districts. 

So . . . is it a good time to buy? Yes, it certainly is.  A little bit confusing–the Outer Banks Real Estate market has segmented as it never has before, which is why the Real Estate professionals at Resort Realty are so important in helping you make your decision.  But it really is a good time to buy.

Constructed of woods shipped from inland farms, such as cedar and juniper, they were simple in design, easy to build, never painted and have withstood everything mother nature has ever thrown at them. The homes were designed to take advantage of the glorious ocean breezes and many still lack air conditioning to this day.

It was in these homes that family traditions grew and a unique community took root–whole families, with their servants in  tow, came summer after summer to escape the stifling heat of the  coastal plain. 

Resort Realty Sales Broker, Brimage Silver, is part of that tradition, her Great Great Grandfather, Captain Edward R. Outlaw, built the Outlaw Cottage in 1885, with wood cut on the family farm in Bertie County. Tales of times past are still a part of her life. “My grandmother told me she had to put up black out curtains during the war (WWII)” she says. “So the German U-boats wouldn’t know where the shore was.”

“There is an ambiance to this area, to the families who live here,” she goes on to say. “We’re friends…we’re family. We have cocktail parties on our porches all summer long, and even have a 4th of July parade down the beach road each year.”

Brim just sold a historic oceanfront estate that was not listed for sale, but she perservered on behalf of her clients and made their Outer Banks dreams come true.  Not every property she shows, of course, will be or can be part of the historic homes of the town.

Her current listing, a Nags Head Oceanfront home, is in the heart of the historic district,  although it was built in the 1990s. Nonetheless, the house boasts many of the characteristics of the original houses. The wide wrap around porch invites easy lounging on a lazy summer evening or is ideal for entertaining. “It can weather many a storm or cocktail party!” Brim says.

All four bedrooms offer ocean views, although the panorama from the master bedroom is truly something special. “The view from the master suite is absolutely stunning,” is how Brim describes it.

Still retaining much of the original dune line created in the 1930s, one of the nicest features of the historic homes of this Nags Head Vacation home 

Listing Courtesy of Brim Silver

is the unspoiled feel to the beach. The beach itself is public property, but there’s no beach access in sight in either direction.  “It’s all your friends and family sitting out there.”

The rental projections for the property are eye-opening. “Up to  $60,000,” Brim observes. Yet as important as that is, it is not the only feature that she feels families should know about. “You’re getting a lifestyle,” she says. “A true oceanfront neighborhood, unlike anywhere else on the Outer Banks…this is truly a rare opportunity to own a young home in our historic district.”

A short sale can be both, it just depends if all the parties involved are prepared, punctual and persistent (we’ll call that the three “P’s”) or if they are sloppy, slow and slack (three “S’s”). The three “P’s” will serve you well if you follow them closely.

The seller must establish that continuing to make their monthly payment will place their household in a hardship situation, and therefore they will not be able to continue to make those payments. Because of this, the seller must be prepared to disclose all financial information. The paper work to confirm this is monumental and is best accomplished with the help of a REALTOR®. The lender will then assign a loss mitigation officer to oversee the process. The failure of anyone in this process to be punctual results in the file being placed on the bottom of stack–and it is a large stack!

There are thousands of short sale properties out there and Outer Banks Real Estate is not immune.  In addition, there are just a few loss mitigation agents to handle the huge backlog of applicants. Be persistent and diligent in contacting the mitigation agent offering any help to speed along the process. The three “S’s” will result in a property never going to the closing table. If the process gets bogged down, the buyer may become impatient and withdraw their offer, seeking either a new property (most likely NOT a short sale) or they just remove themselves from the market. 

There does not seem to be a clear map to the closing table because of the different policies each lender has. What may have worked with one lender may not work with another. The seller must also be aware of possible tax liabilities in doing a short sale and if the lender is looking for recourse for part of the loan. Sellers would be wise to contact a tax attorney or CPA for financial advice.

The buyer must be patient and prepared with all financing in place and all contingencies satisfied including home inspections, insurance and utilities and have them ready to activate. Being prepared, punctual and persistent in these matters will ensure the buyer they have successfully avoided a nightmare and seized a real estate opportunity.

 If you are thinking of selling your home as a Short Sale, or would like information on buying an Outer Banks Short Sale property, please give the professionals at Resort Realty of the Outer Banks a call at 866-928-2674 or view all the available Outer Banks Foreclosures and Short Sale properties on our website.

The OBX Real Estate mobile search application is a free MLS listing search tool for the entire Outer Banks area. Looking for active Real Estate listings from Corolla to Hatteras Island or westward in the mainlands of Currituck and Dare Counties? Download the OBX Real Estate mobile search application now and find your dream home, landsite or investment opportunity using the dynamic map search tools.

No registration needed, simply install and start searching for active listings anywhere in the Outer Banks MLS service area.  This real estate search application for the Outer Banks area is provided by Resort Realty.

For over 20 years, Resort Realty has been the leader in Outer Banks Resort Real Estate, Outer Banks Vacation Rentals , and Property Management. With four convenient office locations in Corolla, Duck, Kitty Hawk and Nags Head, we are uniquely qualified to offer unparalleled service.  We know our market area and we appreciate the special qualities of aiding the absentee buyer and property owner. Our seasoned Outer Banks real estate agents can guide you every step of the way.

Don’t hesitate to contact Resort Realty regarding any Outer Banks real estate property you see listed for sale, regardless of the listing company. The
real estate professionals at Resort Realty are committed to providing the most up-to-date information possible to assist you in making your Outer Banks dream a reality. CALL 866-928-2674 for more information.

Why Use a Rental Manager?

We occasionally hear homeowners ask about the tradeoffs between self-management and management services.  Obviously managers cost money.  Do managers earn it?  Are they cost effective?  This month, we share our answers to the question, “Why use a manager?”

RBOs Don’t Save Money.   They “earn” it, doing some of American’s dirtiest work.  The challenge is not just finding renters, but “fixing, cleaning, and taking care of the screaming guests:” Typical examples:

• Responding promptly to emails by impatient renters who are quick to look elsewhere;
• Answering 10 inquiries for every booking;
• Negotiating rent with bargain shopping renters;
• Responding to renters who argue that a malfunctioning hot tub justifies a full refund;
• Finding a back up cleaner when the regular cleaner doesn’t show up;
• Dealing with lost keys at 2 in the morning;
• Finding a vendor to remove unexpected snow that is blocking access to the home;
• Getting prompt response by an a/c repairman in the middle of summer.

Unplanned Problems.  Are problems rare?  Work-order statistics commonly reveal as many major problems per home as rentals!  Managers are experts in the problems that routinely arise in putting a non-resident renter into a home owned by a non-resident.  We anticipate and avoid recurring problems through preventive maintenance.  We put together networks of service vendors who respond to us faster than they would respond to an individual homeowner because we send them so much business.  We can keep backup cleaners on call because we have enough homes to keep them busy.  Our cleaners serve as our eyes and ears for homes they don’t actually clean, helping us keep properties safe from unruly or unauthorized renters.

Liability.  Many rent-by-owners expose their net worth by failing to inform their insurance companies that they are renting their vacation homes without using a professional manager.

Managers minimize homeowner’s liability by using:

• Bonded workers; and
• Workers covered by workers’ comp;

We use a professional laundry (do you know how many pathogens survive a household washer)?

Credit Cards.  We can take credit cards, assuring more rentals.  This is a credit card society where most renters want to either defer payments or earn miles by paying with credit cards–individuals can’t take cards and PayPal or third-party services are only partial solutions.

Tax.  No one enjoys dealing with the tax man.  It is not uncommon for RBOs to not charge tax.  This may appeal to renters.  But local tax authorities are mobilizing and starting to access homeowner’s Federal Tax returns (through PACE agreements) to identify homeowners who have reported the expenses associated with their rental homes.  Managers relieve the homeowner of tax collection, tax reporting and, of course, interest, penalties and criminal penalties.

Refunds.  We also earn our keep by relieving homeowners of the infrequent but inevitable nightmares– where heat or air systems break and the renter won’t remain in the home, or where weather prevents renters from getting to the home and they want their money back.  RBO sites sell travel insurance, but usually not in a way that prevents uninsured renters from demanding a refund from the homeowner.

Slave to Phone and Computer.  Most importantly, there is the question of bookings.  RBO sites make it easier for owners to market their own properties, at least for homeowners who are willing to chain themselves to their phones and computers.  Aggressive RBOs can generate as many bookings as a manager.  But most RBOs lack the time or energy to respond promptly to the many non-booking inquiries.  And you only need to look at the leading RBO sites to appreciate the challenge of maintaining availability calendars.

Discounting.  RBO sites attract bargain shoppers.   We have a larger pool of renters who are more interested in getting the home they want than in getting a bargain.  RBO site renters often send multiple email requests soliciting discounts.  We monitor the booking pattern of an rental program to determine whether we need to give discounts.  We have a good sense of when to discount and by how much.

To summarize, management is not a fun or stress-free job.  Self-management can work for a homeowner who is both motivated and willing to do a lot of work.  Some who self-manage know what they are getting into.  Others don’t yet appreciate how much stress is involved.  We are equipped to do the heavy work for homeowners.  We make vacation rental home ownership a more pleasant experience. Most of our homeowners prefer to hire us for that purpose whenever finances permit.

Recently Resort Realty’s CEO, Mike Harrington, was interviewed about what sets his company apart.  The Outer Banks Vacation Rentals and Outer Banks Real Estate markets are extremely competitive.  See Mike’s view of where he feels Resort Realty stands today.

Located on a 900 acre peninsula on the Albemarle Sound, Scotch Hall Preserve is truly a show piece community.  It is rare today you have a completed infrastructure and top of the line amenities where you can enjoy from day one.  The developer told me there is approximately $55 million dollars in investment that has already been spent on the property and Signature Arnold Palmer Golf Course ready for its third season.  That is commitment!

Currently the Scotch Hall Preserve community is offering select home sites for sale with direct waterfront home sites on the Albemarle Sound starting at just $249,000!  Should you have any questions give one our Resort Realty’s knowledgeable Outer Banks Real Estate brokers a call at 866-928-2674.