Hey, don’t ever buy, heck don’t ever make an offer, on a vacation or permanent home along the Outer Banks, without watching this video on what you will need to bring to the closing table. Welcome to another episode of Emerald Isle Vacation Home Specialist. I am your host, Denis Raczkowski. In addition to being a real estate professional, I own a donut shop in Emerald Isle where customers will often ask “what does it cost to purchase a home here on the Outer Banks?” A lot of agents will give some vague numbers in the 6 figures or more. But what I think my customers are really asking is: “What do I need to save in order to purchase a house along the coast?” Since I don’t yet know my customers’ finances nor their dream home, I answer that question using the current median price of houses sold here in Carteret and Onslow counties. And for this 4th quarter of 2022 the median price of a house sold in my MLS here on the Crystal Coast is $305,000. Median is not the average price. Median means that half the houses sold were under $305,000 and half were above $305,000.
Using $305,000, what do you need to get a seat at the closing table? First, there is the down payment. For a primary residence, if your credit score is north of 800 and you have a great relationship with your bank, maybe, just maybe, you can get a loan with 5% down or $15,250. For the rest of us, well, we’re putting down 20% or $61,000. On every home you purchase, you should hire a qualified home inspector and, in my area, the cost is roughly $1,000. The lender will pull an appraisal and that will set you back another $800 or so. There is a title search and attorney or settlement fees and these fall in the $800 range, as well. A nominal survey to verify the boundaries of your lot will cost about $400.
In addition to these core costs, you’ll need to factor in some other expenses, as well. If this will be your primary home, you’ll incur moving expenses which, on average, fall in the $3,000 range. While all homes come with a stove, many do not come with a refrigerator nor a washer-dryer combo. Add in another $6,000. After all, you may not like the stove or dishwasher that came with the home. And, you should have roughly 1-2% of the purchase price or $3,000-$6,000 in reserve for repairs and/or cosmetic improvements like painting the walls or replacing wall to wall carpeting with vinyl plank flooring. At this point, you’re looking at between 30,000 and $75,000 to purchase a median priced home here along the Crystal Coast and that is the answer I’ve been giving my customers at my donut shop for the last quarter of 2022.
If you are still with me, you might be thinking that that is a lot of money and, yes, it is. And after you get up from the floor, you might ask: “Are there any ways to reduce these upfront costs?” And yes, there are. First, you can purchase a more affordable property. Maybe you look for two bedroom rather than 3 bedroom homes. Or, maybe you look in neighborhoods and towns, like Bogue, Stella, and Havelock, a bit further from the water. Or, instead of a single family home, you investigate condominium or town home options. Second, perhaps the seller can contribute towards your closing costs. Or, if your appraisal supports it, you may be able, with the seller’s approval, add your closing costs to the price of the home you are buying. Third, you can see if you are eligible for grants and incentives, especially if you have been in the military. Fourth, if this is going to be your primary home, you can always make your offer contingent on the sale of your current residence. And, if you ARE going to sell your home, make sure you request my complimentary 50 Point CMA in the description below. Fifth, if you own your primary home outright, maybe you consider taking out a new mortgage or applying for a line of credit or loan. Sixth, you can also withdraw money from your retirement account. If you are older than 59 years, withdrawals come with no penalty.
If you are starting from scratch, how do you save between $30 and $75 thousand dollars? Let’s begin with baby steps. Start by taking the $30,000 and divide by 365 and you get about $82. At $75,000 that number is $205. Over two years, that number drops to a little over $100. Maybe you cut the cable. Maybe you start meal planning, cook at home and stop going out for breakfasts, lunches and dinners. Use shopping lists. Go to the grocery store rather than rely on online food ordering and delivery services. Lower your thermostat in winter and raise it in summer. Go to Goodwill for clothing and other refurbished and used items. Recently, I purchased four Ralph Lauren shirts at my local Hem of the Garment for under $20. If you are more of an online type, go to ebay for your every purchase. I routinely purchase items there for cents on the dollar. No more bar hopping. Heck, no more going out, period. If you can put down at least 10%, you may qualify for a gift to cover the balance from parents or family. Just make sure that all gift money is seasoned in your bank account for several months. No one said this would be easy. Maybe that is why owning real estate is the surest and safest way to become financially wealthy in this country. I suppose that’s why Mark Twain said, “Buy land, they’re not making it anymore.” And, when you ARE ready to purchase a home here along the Outer Banks, make sure you call on me to be your broker. In the meanwhile, to learn more about real estate trends along the Crystal Coast, please go to my website, www.EmeraldIsleHomesforSaleNC.com and sign up for my blog. Ready to buy or sell? Call me at 919-308-2292. Explore the video tab for my weekly uploads to my YouTube channel. Subscribe to my YouTube channel and receive free donuts at my Flip Flops Donut shop. Text your email address to 919-308-2292 and subscribe to my newsletter. My book, "Live Where You Vacation" is available on Amazon.com or at Kindle.
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