The Ocracoke Island Real Estate market is unique in that while other regions of the Outer Banks experienced a definite "bubble burst" in the latter 2000s, Ocracoke prices remained relatively the same. The reason for this is simple - with just 4 square miles of area to build on, there were only so many properties for sale at any given time. Coupled with the fact that Ocracoke remains one of the most popular destinations for Outer Banks visitors, it's easy to see why this real estate market has steadily risen with its reputation as one of the best beaches on the East Coast.
Buyers who are interested in Ocracoke Island will want to review the following points that cover both the local landscape, as well as North Carolina state procedures and regulations for buying Outer Banks real estate.
Types of Ocracoke Island Real Estate Available
- There are no oceanfront or oceanside properties for sale, however there are a number of soundfront, canalfront, or harborfront listings. As a rule of thumb, waterfront properties are typically more expensive.
- Ocracoke's real estate is divided into commercial, residential, lots and land, and boat slip categories, and prices vary accordingly.
- Residential listings are further divided into single family home, mobile home, condo, or duplex listings. The most common form of residential real estate for sale is single family homes.
- Lot listings on Ocracoke Island are sparse, but there are typically about a dozen or two lot listings for sale at any given time. Prices typically start in the $80-$100K range.
- Residential Listings are more common, and there are generally anywhere 40-60 homes, condos, or mobile homes for sale on Ocracoke Island at any given time. Prices generally start in the $180s for condos and homes.
- Commercial listings are the rarest, but intrepid buyers will find a few leases, businesses and / or buildings for sale at any given time. Prices for commercial listings vary widely.
Buying Ocracoke Island Real Estate
- The majority of properties for sale on Ocracoke Island are represented by local REALTORS or selling agents who then post the property's details to the Outer Banks Multiple Listing Service (MLS.)
- Both of the property management companies On Ocracoke Island have sales departments which include online access to the Outer Banks MLS. From these companies' websites, visitors can search for properties available for sale on Ocracoke, which include detailed descriptions, photos, and other essential information.
- Searching the Outer Banks MLS online is the easiest way to research Ocracoke properties for sale. With that being said, on-island visitors can also do a drive through the small village, or contact a local sales agent directly for more information.
- A handful of properties for sale on Ocracoke Island are listed by individual owners, and not real estate agents. These properties can be discovered in person, in local online newspapers like the Ocracoke Current, or on national websites like FSBO.com or Craigslist.
- In North Carolina, properties that are listed for sale are represented by a "seller's agent," who then charges the owner a commission to sell their home. A "buyer's agent," who represents homebuyers, can sell the property and receive a percentage of the seller's agent's commission. Effectively, this means that the seller pays the commission, while the buyer does not have to pay any fees for a REALTOR.
- Considering this, it is in the buyer's best interest to enlist the assistance of a buyer's agent. There is typically no cost for the buyer's agent's time and services, and out-of-area buyers will benefit from the agent's expertise on the Ocracoke Island real estate market.
- In addition, a buyer's agent is instrumental when it comes to arranging home inspections, surveys as needed, providing mortgage lender contacts, and creating Offer to Purchase Contracts. Typically, North Carolina has a standardized form for Offers to Purchase contracts, and a buyer's agent can generate all required paperwork with ease.
- Buyer's agents can also help with scheduling showings, which may be tricky in the summer months when the majority of properties are occupied with visitors. Buyers should plan to see properties for sale on Ocracoke Island on a "changeover day," (or Friday, Saturday and Sunday), to ensure the home is open and free of tenants.
- While the number of real estate companies and services are decidedly limited on Ocracoke Island, the island is home to a small but recommended handful of real estate agents, mortgage lenders, and other professionals in the real estate agency. This ensures that while a closing may take a little longer than the 30-day standard, (especially if a buyer lives out of the area), there are local experts to ensure the process goes smoothly.
Considerations for purchasing Ocracoke Island Real Estate
- Home prices on Ocracoke Island are typically more expensive than other Outer Banks areas, but also don't experience the same dramatic fluctuation as the majority of national real estate markets. This makes these properties generally good investments, especially for buyers who may want to resell in 5 years or less.
- Mobile homes on Ocracoke Island are often the cheapest listings on the market, however a special loan is often required that is not always available by all banks or mortgage lenders. A higher down payment to acquire a mobile home mortgage may also be required as well.
- Flood insurance may be required for Ocracoke Island properties for sale, due to their proximity to the Pamlico Sound and Silver Lake Harbor. All properties are placed in a designated flood zone, so consult a real estate agent or insurance provider for additional information and estimated costs.
- Most condo complexes or villas have an annual or monthly fee which covers the maintenance of the community and grounds. Be sure to factor this into a monthly mortgage payment.
- While Ocracoke Village has a handful of subdivisions that may have their own covenants, in general, building restrictions for outlaying buildings or property improvements, (like fenced yards or additional porches), are fairly lax.
- Visitors who are purchasing a vacation rental home will want to meet with the listing's current property management company to get an overview on expected commissions and fees, as well as past rental income performance and steps that can be taken to generate more income.
- About 60%-70% of properties in Ocracoke Village are vacation rentals, and most area buyers are purchasing an investment property to rent out weekly, and generate some extra income to help with their mortgage payments. While the income received typically doesn't cover the cost of maintaining a home, (especially when a mortgage is needed), most investors determine that owning a sliver of this in-demand island is more than enough reward for their investment.
