Sandman Team

Below is an Overview of Foreclosures, Short Sales, Market Cycles, and FREE Automatic Email Notifications ... Too Keep you abreast of the Latest Properties Entering the Market which may Meet Your Requirements!

>>> Below that, See Details regarding Tax Assessments and What They Mean to You ...

To receive a List of all Currently Offered Properties Meeting Your Requirements, you can accomplish this Multiple Ways within this Website:

a)    You Search and Select Properties of Interest ... simply go to the Home Page and Complete the Property Organizer Form -       you can manage and watch the status of any Property(s) of Interest.

b)    For a Quick Look at Available Properties, simply go to the Home Page and select the Search Properties under 
       each area of Interest.

c)   Select "Receive Free Automated Email Reports" to sign up to receive an initial List of All Properties meeting your Specific 
      Requirements regarding Location, Price Range and whatever additional Features you require.  You will receve an initial Email with
      all Properties Meeting your Requirements. 

Then, after that, you will be set to receive an "Automated Email Notification" Direct from the MLS each Time a Newly Listed Property enters the Market, or an Existing Listed Property has a change in Price. 

This way you do absolutely nothing - it is all automated and it is done for you. This will be done with No Obligation and can be done completely through the Email process - No Phone Calls required.  

The Outer Banks Market cycles every approximately 15 Years. The last bottom cycle we experienced was in 1996. 15 Years Later here we are now yet again at the next Bottom Cycle.  Although the Media is not yet touting it as such, it is here.  We may see some slight softening in values this coming year.  This is likely to occur until the Foreclosures clear out of inventory.

Purchasing a Property is often one of the Largest, if not "the" Largest Financial Move a Person will contemplate in their Lifetime.  It makes sense to Choose the Very Best Agent in the Market ... Be Sure to Visit our Testimonials Page to see what Past Clients are Saying ...

One of the great advantages of the Web is the Ability to Provide Information.  This Website was Designed with You in Mind ... there are over 20 ways to Search Properties available (within the Entire MLS), and tons of ways to stay Abreast of Properties that Enter the Market - which may be of interest to you!

There are many Individual Sellers who have decided for one reason or another that this is the Right Time for them to consider Selling their Property.  Sellers now are acutely Aware of the present Market and current Values and many are Pricing thier Property very Competitively in this Market.  
 

REO Foreclosure Properties ...Are a Favorite Topic of Most Buyers in the Market, but NOT to the Exclusion of any other Property available on the Market which may also be an Excellent Value.  REO stands for "Real Estate Owned".  This means that the Bank has completed the Foreclosure Process and is now in complete ownership of the Property.  In such situations, it is the Bank that will make the decisions as to any eventual Sales Price. Most Banks will require the evntual Buyer to execute an Extensive Contract Addendum, which is created to provide the Bank (Seller) with added protections and is structured very much in favor of the Seller (BanK).  Some Addendums modify each provision in the Standard North Carolina Association of Realtors (NCAR) Contract Form.  Some Bank's Addendums are a minor Modifcation.  See PDF Draft Example NCAR Purchase Contract Form attached to this page.  

Short Sales Explained ...A Short Sales is when a Seller owes more than what his property is worth, or, what he can net from the sale after expenses of sale.When this exists, the seller can either bring the difference in cash (from his other resources) to the table and close.  I have had Sellers who have done just this.Or, if the Seller is in a hardship situation, and unable to bring cash to the closing table to cover the difference, the Seller can contact their lender and request a short sale package.The Seller must supply a hardship letter explaining their situation and inability to continue payments.  There are additional documents required by the sellers lender of the seller such as pay stubs, verification of income and current financial statement. Often a bank will not entertain a short sale inquiry/request on the part of a seller until the seller is in arrears with their mortgage.  However, that is changing and many lenders are now open to requests prior to a property owner being in arrears (behind in payments).

A seller can place their property on the market as short sale and as they still own the property, they can, along with their agents input and recommendation, place a price on a property which will get immediate attention and hopefully draw an offer and then enter the contract phase as soon as possible.Once this happens the seller then submits the copy of the contract to their bank(s) for their approval and written acceptance.  At this point it is the sellers bank's money and not the sellers, therefore the seller's bank(s) have to approve the sale. 

This part of the process /phase can take anywhere from 4- 8 weeks, or more as most Banks have an abundance of these request right now and take time to work through them.  Most do not have sufficient trained staff to handle these.  The Banks will also during this time have an independent BPO (Broker Price Opinion) completed and a formal appraisal completed for their own information to confirm if this Short Sale contract price is one that they will agree too.

Some banks never respond to a short sale request at this point.  This type of sale appears to have the potential of being an exciting opportunity, but it can be a headache and a waste of time and effort as a high percentage of these transactions do not close.  It most certainly requires patience on the part of all involved. The nice thing about the Short sale Contract is that there is an addendum Titled Short Sale Addendum - which is attached to an Offer To Purchase for a property which is a Short Sale which allows the Buyer the option to terminate a contract and receive the Earnest Money Deposit back in its entirety PRIOR to the Seller's bank's approval of sale.  However, Not the Due Diligence Fee (if any) paid to Seller as a part of any contract.Some Sellers have  2 loans … a 1st mortgage and a 2nd mortgage/equity line.  This requires skillful negotiation with the 2 banks - often this is accomplished with the input and coordination of the Seller's Realtor. 

As a seller, you will want to make sure that your Broker is well versed in Short Sales and capable of assisting through this process.A Buyer's Agent can usually find what loans exist and what the original loan amounts … not usually the current loan amount - however, usually they are not much different.  The equity line notes will show the maximum credit line - so, one would prob assume that anyone in this situation has maxed out that line.At whatever point the sellers bank provides written approval of sale, then the seller's bank will also at that point usually specify a closing date by which the transaction will have to close - which is usually a short time after they approve the sale.There are 2 schools of thought on what to do as a buyer once you are under contract with a short sale ...

a) Perform all inspections immediately after contract with seller, or

b) Perform all inspections after receiving sellers banks approval of sale. If you are a Buyer, You will want to discuss this with your Agent, Lender and Closing Attorney to make sure that once you do have sellers bank's approval that these folks would be ready to go get all completed for you within the time period required.Call or email with any questions.
 

*****************************************************************************************************************************************************
TAX ASSESSMENTS ... What They Mean to You ...

There are 2 Taxing Authorities (Dare & Currituck Counties) here on the Outer Banks.  Within these Counties there are some areas that are also under the Taxing Authority of a Municipality (Town/Township), and some areas are not - the areas not within a Municipality are in an "Un-Incorporated" area of the County. 

In an un-incorporated area, there is the single County tazing authority.  When also located within a municipality, a property owner will pay property taxes to the County and the Municipality or Town.

The State of North Carolina requires all Counties in the State to re-assss real property values (at minimum) every
8 years.  A County can elect to perform a re-assessment in a lesser time period, however, due to the expense of the process, most will perform these on the 8 year intervals.  In Dare County, this is scheduled to take place in 2012, with the new assessments "listed in 2013".  In Currituck County, the next re-assessment will take place 2013.

When a re-assessment occurs, generally, property assessed values will increase or decrease.  During the last re-assessments in both Counties, the "assessed values increased" dramatically.  When that happens, the "tax rate was decreased"  so that the County taxing authority remains roughly revenue neutral.  This is not required of the Municipalities.

Since the previous assessment, property values have decreased, so the next re-assessment will likely reflect an across the board "reduction in assessed property values", some being more significant than others.  Once the new assessed values are totaled, the Counties will again set a new tax rate - which will "likely increase the rate" which will be roughly revenue neutral for the Counties.  

Somehow, I think the taxing authorities always seem to realize some increase in revenue when these re-assessments occur!

Q: Is the Tax Assessment a viable benchmark to determine value?
A: They are simply an indicator of the rough value of a property at the time the assessment was performed.  They are not the equivalent of a formal appraisal, because, as you know, the assessor does not have access to the interior of a property.

Q:  Why do some Realtors reference an asking price as "Being $65,000 below Assessed Value!"? 
A:  I don't know why any agent would use this as a benchmark, as it is irrelevant.  The value of any property is based on what a willing & able buyer is willing to pay, and a seller is willing to sell for.  Baseline Value is determined by a buyer (consumer) through comparison with all available properties meeting their requirements for location, condition and price.  What I call the "tri-fecta".

Call or email with any questions!

Best,
John