Posts Tagged OBX Real Estate

Outer Banks Bonner Bridge Update

Bonner BridgeThe Bonner Bridge spans Oregon Inlet, linking the northern Outer Banks with Pea Island and Hatteras. It is an aging bridge, put into service in 1963 with an expected life span of 40 years.

Beginning in 1993, NCDOT in cooperation with the Federal Highway Authority (FWHA) began studying how to replace the bridge. The plans have been mired in controversy since the first Environmental Impact Statement was issued and even with a final determination about how to proceed, controversy and legal actions continue to dog the project.

At the heart of the debate over how to replace the bridge are environmental concerns, access to Pea Island National Wildlife Refuge and cost.

Although a number of proposals were examined, two competing views of how to connect Hatteras Island with the rest of the world emerged. The plan favored by environmental groups, would create a new bridge corridor paralleling Pea Island in the Pamlico Sound. The bridge would be 17.5 miles in length and would completely bypass Pea Island, making landfall on the north end of Rodanthe.

NCDOT, however, chose a phased approach that would first replace the aging Bonner Bridge with a parallel span about a quarter mile to the west and then make adjustments and changes as needed to the existing road as it goes through Pea Island National Wildlife Refuge.

Neither option is a perfect solution. Pea Island is an extraordinarily dynamic stretch of shoreline, prone to constant over wash and ever shifting sands. As an example, the road just north of Rodanthe–the “S” curves–has been an inlet in the past and will be an inlet again. The fazed approach, in fact, includes plans to bridge to build a bridge over the area that will become an inlet and allow nature to take its course.

One of the problems with the phased approach is that the road must remain within the existing right of way. Pea Island is administered by U.S. Fish and Wildlife, and by law, Fish and Wildlife is not permitted to grant a new right of way. There are some circumstances under which they may be able to do so, but there is no guarantee that would be the case.

The 17.5 mile bridge would certainly answer concerns about Refuge right of way and the dynamic nature of Pea Island. However, access to the wildlife refuge would be severely limited. State Route 12 (the highway that goes through the refuge) is maintained solely because it is a transportation corridor. If it is no longer needed to connect Hatteras Island with the northern Outer Banks, it will not be maintained.

The biggest problem, though, with the 17.5 mile bridge is the cost. At approximately $1.5 billion over the next seven years no agency or government body could see how the project could be financed. That decision was made a year ago, and government treasuries have become even more restricted since then.

Nonetheless, the Southern Environmental Law Center on behalf of a number of environmental groups, filed suit to stop the parallel bridge with phased approach from going forward. According to the legal brief, NCDOT failed to properly study how access through Pea Island would be maintained. The suit was filed as NCDOT was putting the project out for bids. 

NCDOT, in a statement concerning the suit, indicated the project would go forward as the courts decided the fate of the bridge. According to their statement, “(NCDOT) finds that the information presented has already been studied and addressed numerous times over the past 20 years . . .”

Let’s hope this time we will see actionable progress for this long overdue project that is so vital to Hatteras Island and the Outer Banks as a whole.

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Resort Realty Announces New COO & General Manager

Stuart-Pack-webJuly 5, 2011 (Nags Head, NC) – Resort Realty, one of the Outer Banks most innovative and fastest growing vacation rental management and real estate sales companies, has recently announced the addition of Stuart Pack as their new Chief Operating Officer and General Manager to oversee the day-to-day operations of their nearly 500 homes under management. Pack brings to Resort nearly ten years management experience in the vacation rental and real estate sales industry.

“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 ProsLLC, 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

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Outer Banks Economic Forecast

                 At a recent Economic Forecast breakfast at the Hilton Garden Inn in Kitty Hawk, Dr. James Kleckley, Director, Bureau of Business Research, Department of Finance at ECU, painted a cautiously optimistic picture of the Outer Banks economy. “We’re going in the right direction, though we’re not going as quickly as we would like,” he said.

                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.”

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Outer Banks Short Sales . . . Opportunity or Nightmare?

Outer Banks Short SalesAs adjustable rate mortgages (ARM) have adjusted and property values have modified, a new kind of real estate sale has reared its head on the Outer Banks. If a seller can no longer afford their mortgage and must sell their home and the value of the mortgage is greater than the value of the property, it is a short sale. It can be a convoluted, confusing and time consuming process, and–contingent on how committed the parties are–it can be an opportunity or a nightmare.

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.

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