THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Saturday, July 13, 1996 TAG: 9607110304
SECTION: REAL ESTATE WEEKLY PAGE: 02 EDITION: FINAL
COLUMN: ABOUT THE OUTER BANKS
SOURCE: Chris Kidder
LENGTH: 107 lines
Buying a vacation cottage on a barrier island is not like buying the family home in Chesapeake. Last week, in response to a reader inquiry, we talked about choosing a rental program and an agent to handle the house purchase. But what else does the buyer of vacation property need to know about the Outer Banks?
One of a prospective owner's first concerns should be utility services. If you've lived in a city all your life, you've probably given little thought to where your water comes from and where your sewage goes. You may be unaccustomed to frequent power outtages due to salt spray on the lines and high winds.
You may take the availability of network television and radio stations - without paying for cable service - for granted.
On the Outer Banks, things are different.
Many areas have town or county water service. If you're buying a house in a neighborhood recently or soon-to-be eligible for county or municipal water, you may face expensive water hook-up fees down the road. Check with your local planning board to find out about the current water situation.
Some areas still rely on private wells. Most of the water is considered drinkable but heavy iron content and other contaminents make water softeners and filter a necessity in many households. If you're going to rent your home to others, you have an obligation to provide reliably good water.
In Dare and Currituck counties, only the Town of Manteo is served by a municipal sewer system. Homes everywhere else have septic tanks or are hooked to private systems that may service anywhere from two houses to several hundred.
Private systems are owned by property owners' associations or private companies operating under contracts with property owners' associations. Either way, as a property owner, you'll be in the sewage business at least indirectly.
Talk with association officers about the longevity and maintenance of the system. If association members seem uninformed, be forewarned. Future needs can't be adequately budgeted when members don't understand what's needed. Last-minute fixes are costly.
Trash and garbage disposal are potentially serious - but largely ignored - issues for island residents because no place on the Outer Banks can accommodate a landfill operation (all trash is hauled to the mainland).
North Carolina has yet to put real clout in its recycling mandate, so most local communities are doing as little as possible. Only Southern Shores provides curbside pick up for recycled trash. Before long, more will have to be done; it will cost money.
Zoning can be another problem area for investors. If you're from an urban area where zoning has been in place for decades, you may be surprised by the lack of uniformity on the Outer Banks. But, here, zoning is a relatively recent concept. Many structures are still grandfathered even though they don't comply with current regulations.
In new planned communities, land-use maps are used as sales tools: You shouldn't have any problem understanding what can or cannot be built on the land. But in older neighborhoods, don't buy without paying a visit to the local planning office to find out how the neighborhood is zoned. Don't assume it's residential just because all you see are houses.
While you're at the planning office, check out setback requirements and other rights-of-ways that impact the property you wish to buy. If you are planning any improvements to the house (decks or porches, an additional bedroom, changing a ground floor storage room into heated living space), these property restrictions - along with federal flood zone and state CAMA regulations - may affect your plans.
Ask if any improvement projects (sidewalks, adding traffic lanes to the street, beach accesses) are being planned for the neighborhood. If the town is thinking about turning the gravel lane in front of your house into a four-lane boulevard, you might want to reconsider your purchase.
Owners of investment property are at a disadvantage when it comes to any municipal service because, although they pay taxes, they are not voters and not full-time residents. But you don't have to be uninformed. Subscribe to the local newspaper for information about town, county and state government and issues that affect you as a property owner.
Local governments are required to notify all property owners when land use plans are being updated; some publish regular newsletters to keep owners informed. Make sure the county tax office has your current mailing address or you may not receive these mailings.
One publication I recommend for any would-be buyer is the Outer Banks Relocation & Investors Guide published by the Outer Banks Chamber of Commerce (P.O. Box 1757, Kill Devil Hills, N.C. 27948, 919-441-8144). It covers everything from tax rates medical care, shopping and history, to how you go about getting a marriage license in Dare and Currituck Counties.
If you're buying in Dare County, get a copy of ``A Citizen's Guide to Dare County'' published each year by the League of Women Voters (P.O. Box 689, Kitty Hawk, N.C. 27949, 919-441-5291). Currituck County doesn't have an equivalent publication, but you can direct any questions you have to the county manager's office (919-232-3404).
When it comes to the house itself, consider hiring an independent home inspector to advise you on the structure and its mechanical systems. Since you're buying an investment property, the cost of the inspection will probably be tax-deductible: Why not get an expert opinion?
One problem with hiring a home inspector in North Carolina has been that they weren't licensed or regulated by the state. Anyone with any - or no - qualifications could do inspections. What a reasonable inspection included or guaranteed was anyone's guess.
Some of the uncertainty will be removed on Oct. 1 when state licensing regulations go into effect for home inspectors.
In the meantime, you can read through a good book on home inspection and use its checklist to make your own evaluation. The EZ Home Inspection Guide (Joseph A. Ellul Jr. and Bonnie D Robinson, E&R Marketing, $14.95) or The Complete Book of Home Inspection (Norman Becker, P.E., TAB Books, $14.95) are good choices currently available through bookstores. 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