Marcy Blume, Home Seller in Tamarac, FL

What % below asking price is about right to offer on a home in Southern Shores, NC. It will be a rental home.

Asked by Marcy Blume, Tamarac, FL Mon Jun 2, 2008

It never was before, so certain things, like a pool need to be added for rental appeal. We need to take this into consideration in the pricing arena.

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There was time when you could count on the local MLS information to help you with coming up with the right offer. However with the current state of the market it takes a lot more that just looking at numbers to consider what to offer on any given house. I can only tell you what I do for my clients when I get ready to make an offer in this market and it has worked for me to get the best deal I can for my clients. With out giving away all of my "trade secrets" you really need to try an get the most information on the seller as possible. The key is not to come in so low that the seller totally disregards your offer but to put yourself in a position to get the seller to know you are a serious buyer. This market is really where a Realtor who does their homework and has excellent negotiating skills can save their buyers $$$.

As for a pool it is essential to generating strong rental income. Most renters demand it and they are willing to pay extra for it. The cost for a good quality job is around $35,000 that would include the pool, concrete, fence and most extras. I have a great pool guy if you ever need one.

If you have a need for my services please let me know. I will be happy to help you out any way that I can.

Matt Huband
Broker/Owner
Hometown Realty
PO Box 2223
Kitty Hawk, NC 27949
252-255-0221
http://www.HometownOBX.com
"Working With Buyers & Sellers From Corolla To Hatteras"
Web Reference: http://www.HometownOBX.com
1 vote Thank Flag Link Tue Jun 10, 2008
So, you're thinking of purchasing a potential rental property in Southern Shores. Historically, real estate investments have proven to be a wise investment strategy. The name of the game has always been maximizing cash flow. Years ago, one could realize a healthy rate of return based on cash flow generated from rental income alone, however, with rising property costs, the number of beach properties with a substantial positive cash flow are dwindling.

Purchasing an Outer Banks rental property has proven to be a wise choice in today's investment world. This is evident in the number of investors that continue to re-invest in the market. With property values half of that in other coastal markets and historically low interest rates, there is still a fantastic opportunity for growth.

For the 1st quarter of 2008, the Outer Banks MLS statistics for Southern Shores the average sold price percentage to original list price is as follows:
Oceanside 94%
Canal/Soundfront 85%
Westside 87%

Before you buy, I would like to suggest a few things for you to consider. However, you may already be working with a real estate broker and it would not be ethical of me to interfere. If you have not already signed a “Working with Real Estate Agent” and “Buyer’s Agreement”, I would love the opportunity to do a FREE Comparative Market Analysis (CMA) and Cash Flow Analysis (CFA), for the property that you are considering purchasing.
You can visit my website at http://www.nagsheadhomes.com to read ABOUT ME or you may contact me at:
hugh@seasiderealty.com
MOBILE: 252-489-8491
Hugh “Scooter” Willey
Sr. Assoc. Broker ~ Licensed NC Builder
Feel free to search my website 24 hours a day, the Outer Banks MLS, on my website.
0 votes Thank Flag Link Mon Jun 2, 2008
Marcy,

Though I work exclusively on Hatteras Island, I searched MLS to find that the average selling price in Southern Shores so far this year was about 91% of the original list price. On Hatteras Island, the average this year has been 85% of listing price. While no one expects a full price offer in our current market, you should be realistic when placing your initial offer. Lowball offers have a tendancy to offend Sellers and make them defensive from the start.

Your best bet is to have an experienced agent research closed comparable sales and consider the differences before determining what the most likely selling price of your potential home would be. It would be even better to hire a real estate appraiser before the offer if you are unsure. Some sellers have adjusted their expectations and listing prices for our current market but many are not yet realistic in what they are asking.

If a swimming pool is a missing "must have", you can bet on costs starting at $20,000 to $30,000 for the addition.

I'd be happy to discuss the particular property of interest with you or recommend a good Realtor or Appraiser.

Good luck!
Web Reference: http://www.CarlasCoast.com
0 votes Thank Flag Link Mon Jun 2, 2008
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