THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Saturday, June 15, 1996 TAG: 9606140503
SECTION: REAL ESTATE WEEKLY PAGE: 04 EDITION: FINAL
COLUMN: ABOUT THE OUTER BANKS
SOURCE: Chris Kidder
LENGTH: 100 lines
In last week's column about Hatteras Island, Sun Realty and Midgett Realty were cited as examples of real estate agencies with offices in all three island sections. The sentence should have said they were examples of companies with multiple offices on the island.
Only two companies - Midgett and Outer Beaches Realty - currently have offices at the north end of Hatteras Island (Rodanthe/Waves/Salvo), in the mid-section (Avon) and at the south end in Hatteras Village.
Outer Beaches Realty wasn't mentioned in last week's column because I was planning to write about them this week: they've just started a toll-free real estate ``hotline'' for the island (more about that in a minute). Future good intentions didn't keep Outer Beaches owner Alex Risser from taking me to task.
``We pride ourselves on being the largest property management company of the Island and have also dedicated significant resources in our sales area to narrow the gap.. . . You can understand our disappointment in your article, which not only omitted Outer Beaches Realty but erroneously listed Sun Realty as having offices in all three of those areas,'' wrote Risser.
``Although Sun Realty has over 1,000 rental property listings] throughout the Outer Banks, their presence on Hatteras Island is a clear minority with only 176 Hatteras Island properties listed in their 1996 catalog,'' said Risser. He provided the following tally of listings from 1996 rental catalogs: Outer Beaches, 408; Midgett, 323; Hatteras Realty, 216.
When he and his wife, Patty, bought Outer Beaches Realty 10 years ago it was ``a distant fourth place'' in the rental race, said Risser. What he didn't say was that real estate on Hatteras Island 10 years ago tended to be on the provincial side and that he's expanded his company by striking a balance between tradition and technology.
The new Hatteras Island Real Estate Hotline, co-sponsored by Outer Beaches Realty and Norwest Mortgage, is an example of his approach.
The hotline is a 24-hour, toll-free number (1-888-335-9166) providing two minutes of automated, current market information, complete with high and low prices on houses and lots, and mortgage interest rates. The information is geared toward the vacation home buyer.
The company fields a lot of calls from customers wondering what the market is doing, said Risser. The hotline, started last month, answers those most frequently asked questions. Callers who like what they hear have the option of leaving their name and phone number for a call-back.
While the hotline's real estate information is limited to the island, the mortgage information applies to any area of the Outer Banks. Financing a home on Hatteras Island is no different from anywhere else, said Norwest vice president Linda Barber, but buyers should be aware that the entire island is considered a flood plain. Norwest requires flood insurance for all flood plain properties.
Although the hotline recording specifically mentions the availability of 90 percent financing, Barber said shoppers might also want to consider Norwest's 7/23 mortgage. It requires a 20 percent down payment but offers lower interest rates than a 30-year fixed.
The 7/23 loan has a one-time rate adjustment at seven years, a point by which second-home owners have often either refinanced or sold their property anyway.
Also in last week's column was a reference to mediation services provided by the Outer Banks Association of Realtors.
``Are you aware that a complaint where money is involved must be accompanied by a payment of $250? You may get it back but you may not,'' wrote a reader. ``I don't like the odds so I am not going to pursue satisfaction on a recent problem.''
The reader had part of the story right. If a party wants the Realtor association to arbitrate a dispute, both parties to the dispute must fork over a $250 deposit whether the dispute involves money or not.
Losers in arbitration cases forfeit their deposits. Winners - when there are clear-cut winners - get their deposits back.
The deposit amount is set by the National Association of Realtors to defray the association's legal costs in handling these matters. ``The $250 usually doesn't come close to covering the expense,'' said Tim Cafferty, chairman of the OBAR professional standards committee and a certified mediator.
An arbitration hearing, which typically involves lawyers and runs five hours or longer, is mandated for the Realtor by the association in some disputes with consumers and in all disputes with other Realtors. ``There's no meeting of the minds in these cases and a third party has to decide what should be done,'' explained Cheryl Kilgore, OBAR executive officer.
Mediation, on the other hand, is a voluntary process provided at no charge to the disputing parties. And, while the OBAR can't force a member into mediation, peer pressure can be a powerful tool.
Consumers don't make use of OBAR's mediation services, said Cafferty. ``Either the public is not aware we offer the service or they're suspicious and feel they couldn't get a fair hearing.''
But Realtor associations set up mediation services, in part, to protect the public, stressed Cafferty. Members of the National Association of Realtors and its affiliates are held to a higher ethical standard than the state requires, he said, and they're typically harder on themselves than the public gives them credit for.
``I feel strongly that the mediation process works very well,'' Cafferty said.
According to Cafferty, the public is welcome to use the OBAR library where publications explaining how to file a grievance and how arbitration and mediation work are available. The Outer Banks Association of Realtors is at 110 W. Oregon Ave., Kill Devil Hills. MEMO: Send comments and questions to Chris Kidder at P.O. Box 10, Nags
Head, N.C. 27959. Or e-mail her at realkidd(AT)aol.com by CNB