That’s a great question that most new Outer Banks buyers might not even know to ask. Even though it is counter intuitive, it’s a fact; the average list price to sales price ratio is much higher for bank owned properties. A few reasons for this will be addressed here. Keep in mind that the only person who sets the sales price is the person paying for the property. A seller can price their property at what ever price they want but it will not sell until a buyer sees the value. The closer a property is priced to the buyer’s buying threshold the higher the list price to sales price will be.

Asset managers (those folks who are responsible for selling a bank’s foreclosure property), are usually better at pricing property than private owners. Unlike the typical property owner, the asset manager has no emotion attached to their decision making process. Their main goal is to cut the bank’s losses. Before they make a decision about a marketing price these asset mangers will receive more than one opinion of value on the property. Often times this includes a professional appraisal. They also ask for information about the property’s market segment; are prices going up or are they going down?  This helps them logically determine what price will generate buyers. Often times the private owner sees value in features of their property that buyers will not accept. For example, an Outer Banks seller recently thought that dark paneling walls actually added value because they are easy to clean. In reality, dark paneled walls reduce value in the eyes of most buyers today. The bank’s asset manager also requires regular updates on their property activity and their property’s market segment. If a property is not receiving showings and/or offers then they’ll lower the price to entice buyers. On the other hand, if the house is receiving tons of activity they will be less likely to negotiate on the price. Oftentimes these asset managers are more aware of market conditions than private sellers.

Private homeowners are generally not as aggressive with their pricing because they can use the property while it is on the market. If you are seriously looking at properties today, don’t expect to purchase a bank owned property for much lower than their asking price.  Over the last few months, sales prices were close to 94% of asking price on bank owned homes. Private sales were selling for less than 92% of asking price. Have your Realtor provide you with a market analysis on the property you would like to purchase prior to making an offer. This will give you a target price prior to beginning negotiations.

There are many great web sites out there to help people make smart buying and selling decisions. The increased complexity of the OBX real estate market requires people to take more time learning the market so they can make the best buying and selling decisions.  Thankfully the Internet facilitates this learning process.  You can now understand many of the nuances of this market from the comfort of your home or car.

A good place to start searching for OBX real estate information is with a local Realtor’s web site.  Besides the most up to date information on all the listings, you are likely to find answers to frequently asked questions, current information on OBX real estate trends, a mortgage calculator, general area information and other tools helpful to purchasing or selling property here. Most local Realtors subscribe to an IDX feed.  This is a service that updates the listing information at least once a day.  Some sites not operated by local Realtors have stale information. This can cause you to miss a great value or get a false impression of market values.

If you are driving around the Outer Banks and want listing information on your smart phone, many local Realtors now subscribe to obxwhere.com.  This new service is geared just for smart phones. With this service you can see on your smart phone screen where you are and what properties are for sale around you. Get the link to an obxwhere.com account or other smart phone, property search operating system from many of the QR codes in this magazine. Similar to other computer operating systems, everyone has their favorite type.  Do some investigating and pick one you like before you are out driving around.

The county web sites are also very helpful in obtaining information.  Both Currituck County and Dare County have aerial shots on line.  Flood maps, boundary lines and other useful information are available from their web sites and can be overlaid on these aerial maps.  Now you can see the best way to get to the beach from the property as well as get a rough idea where the house sits on the property.

Getting good real estate information from the comfort of your home or car is easier than ever before. Contact your local Scott Team Realty for links to these and additionalr sites where key Outer Banks information is located.