The 2014 Wilmington Real Estate and Relocation Guide

CHAPTER 1

Meet the author

Buddy Blake, broker and co-founder of RE/MAX Essential

You’ve been in the real estate business in Wilmington for quite a while now. What are some changes you’ve seen and what do you expect to see in the future?

It’s been a significant up-and-down change, and now it’s up again. In 2004 to 2007 we saw a massive growth—commercially, residentially, jobs, everything. Then it all fell apart in 2008. And the beach markets really took the biggest hit because they rose the most during the boom.

Just like everyone else, we went a five-year period with very little happening, and if anything happened, it was not in a good direction. Overall, we’ve never been a place known for a huge amount of jobs. What we’ve always been known for is being a great place to live and having a really good affordability level. And all through the times, even the bad times, we never lost the demand for housing.

If anything there’s been more demand to live here. But people just couldn’t make the transition to move down here while the economy was down because they couldn’t sell their homes back in New Jersey, Ohio, wherever they were coming from.

How has your client base changed in the last five years? Why do you think that is?

I think the same demographics are there. We still have a lot of retirees or pre-retirees. For the last five years they had been hung up in their home markets and couldn’t do anything until they sold their homes. The last ivef years’ sales have been mostly first-time homebuyers and people who had to move here for a job or whatever reason.

The overall reason people move here is still the same—the low cost of living, the draw of living on the coat, the fact we have four seasons and we’re still within a day’s drive of anything on the east coast. You can get back home to your family in the northeast or the south within a day. A lot of people will buy a house in Florida and not like that it’s one season, so they go halfway back to New York and they land here. We even have a word for those folks. They’re called halfbacks.

What’s been the biggest difference in the real estate market in Wilmington you’ve seen since you’ve been working?

I think one of the biggest differences is the availability of financing. It’s become more difficult to get loans than it was during the peak. You now have to have good credit and have some money to buy a house, versus previously just needing to be able to fog a mirror.

So far this year almost 30 percent of our transactions have been cash closings. It’s not usually that high. I think for a lot of folks the stock markets are back up, they are pulling their nest eggs out. The other thing is, a lot of the folks in the northeast or Ohio, they decided to buy a cheaper house here and are paying cash for it versus running the risk of getting in debt buying an expensive house and mortgaging it.

When you meet up with clients you sold homes to several years ago, what kinds of things do they say to you?

In a lot of cases, they just want to get out of them and they just want to move. We’ve had to learn together—we didn’t deal with short sales until the last five years. Sometimes it was painful. Sometimes it worked out with less pain.

We’ve had to be flexible in a lot of ways. We started a property management company because for a while there, the best advice we could give someone was to rent their house and wait. And we’ve helped a lot of people refinance at today’s rates, which are ridiculously low. It’s been a tough five years for a lot of people, but things are looking way up. 2012 was the best year we’ve had as a business, ever.

Why do you think you get so many referrals and so much repeat business?

I’d like to think that we’ve done a good job for people, and we were in it for more than just selling one house. By doing a lot of business it gives us a lot more flexibility. We’ve continued to do the basics of selling, but at the same time we’ve been the pioneer on the internet. We’ve shifted with the market. Another thing is, we’re brutally honest with people whether they’re buying or selling. We won’t tell you what you want to hear, we’ll say what you need to hear. It can be uncomfortable, but we’d rather give a client bad news than a lie.

Does that brutal honesty affect how you handle your Guaranteed Sell process?

It has everything to do with it. It’s made us better. Because when you put your own money on the line you do your homework better. Even though usually you want to tell people what they want to hear, this program forces us to tell people the truth about the program.

As the market has shifted, we’ve shifted our Guaranteed Sell offering. We’re morphing it to move with the market. Before, we were offering a safety net that only a few sellers took advantage of. It was not about making money; it was just about finding a way to get out. Now we’ve morphed it because it’s not a matter of people just trying to get out. They are trying to maximize their money again.

The new guarantee is, if we don’t get an offer on your house in 99 days I will work for free. The seller won’t pay any commission on the listing side. So, when we take listings we make sure we have a plan to get them sold so we can earn our commission. Whether it’s a first time home or a multi-million dollar property, we are talking about a lot of commission dollars we might lose, so that can be a very strong motivator for sure.

Why do you feel so confident in your team’s ability to meet that promise?

I think that we are exceptional in marketing. We’ve got one of the finest databases of potential buyers on the east coast that we’ve been building and nurturing for 10 years. We realize there is more to selling a house than just putting a sign out front and listing it in the MLS. We don’t take overpriced listings. If you price a house properly and it’s in the right location there’s no reason why it should not receive an offer within 99 days.

Sometimes we’ll see someone who has equity in their house, and we’ll loan them money against that equity to fix it up so they’ll get more money on the sale. We know we’ll get that money back at the closing, and we know our client will sell for a higher price if the property has more curb appeal, so that’s a win-win for everyone.

We sold more than 500 properties last year. You don’t sell that many properties if you don’t have a good idea of what’s going to sell.

You are from Wilmington and haven’t always been in real estate. What brought you to this business?

It was a bad experience with a real estate agent that got me into the business. Our family was in the TV business. I went to middle school, high school and college here and always worked in the family business. We had a chain of video rental stores and that business wound down—because of Blockbuster, Pay per View and overall changes in technology.

Previously I had gotten my real estate license. I was never sure why. I just wanted to learn more about real estate. A friend had a general contractor license and I had good credit so we would build a home and we’d sell it. During this time, we never heard from the listing agent and we were paying 6% to sell a house and, in our opinion, the listing agent had very little to do with the houses selling. So, I thought, I can’t do any worse than that agent did, so I got my license and listed and sold the homes myself.

What drew you to RE/MAX versus opening up an independent real estate office?

I was with an awesome company for over 10 years and I learned a lot under them. They were and are a phenomenal company. But as they grew and my business grew, our visions and goals went separate ways and I decided it was time to do my own thing. I’m an entrepreneur by nature.

When I looked at the situation, Wilmington is a destination place that people from all over world move to, and I knew I would get more business with a known brand than I would with just Buddy Blake Real Estate. You go to what you are familiar with and people who are relocating are likely to know the quality behind the RE/MAX brand. RE/MAX sells more real estate than anyone else in the world.

And there was a very rare opportunity to be the only RE/MAX company in Wilmington, so I made the leap of faith. If I were in a location where you have primarily local people moving around, I think being an independent brand is great. But in my market, to get the referrals from around the world, I need to be with the number one real estate company in the world.

What advantages do you think you have as a native Wilmingtonian that a transplant might not be able to offer?

Sometimes I think it’s a double edged sword. I’m from Wilmington and I’m southern accented and some people perceive southern people to be a bit dim witted, which (most of the time) isn’t true. But being from here gives people some confidence because I’ve been here forever. I’ve seen all the cycles. I’ve watched it change. Someone who’s been somewhere a long time doesn’t get wrapped up in fads and can see from a long-term perspective.

Although you are from Wilmington, your wife and her family aren’t. Yet now nearly your whole extended family has relocated to be here. What do they say to you about living here?

They love it. It depends on the day. My mother in law, she loves going to plays in New York City and all the hustle and bustle that goes with it. If you get in that mood, there are going to be times you miss the big city. Overall most people like it here because they get to live a more relaxed pace of life. That doesn’t mean you don’t do anything. You’re just not stressing out about where you are going to be in the next 2 minutes. There’s just something about living on the coast—it’s just better. Why else would everybody want to live on the coast when they retire? Wherever they are in the world they want to go to the coast. We are a small town and we have a lot of culture and diversity for a small town. We can do a lot of things without being caught in a massive crowd.

You have experienced Wilmington as a young man, a newlywed, a father with young children, and a business owner. In what role do you think Wilmington suited you most?

I think Wilmington suits me the best as a father and family. Because I think for the first time in my life I’m slowing down and focusing on the things that really matter, Faith and Family. I’ve always been go-go-go, but now I don’t press everything quite as hard. With maturity and children you learn you can only control so many things. I think that works with Wilmington because it’s a slower paced environment, typically. It was great growing up here, it was awesome, but now I’m enjoying it more than ever. Part of it is because I get to have a great business. But the other part is, I know that business will be there tomorrow if I decide to spend time with my family.

Since joining the real estate business, you have grown your network to a national level through Guaranteed Sale and other innovations. What drives you to move beyond simply selling homes?

I want to create something that has some legacy to it for my family. I want to make sure that all my eggs aren’t all in one basket. I love doing new things. I love technology. I love marketing. I like doing different things and throwing stuff at the wall that nobody else might try because it’s not a surefire bet. I don’t mind messing up nine out of ten times, as long as there’s that one success.

How do you find time to maintain your network of agents, keep your customers happy, and keep up with the real estate market?

Because I have learned the great art of trust. I trust the agents and the people and the staff on my team because they have gotten better than I am in most cases. I trust them more than I ever have. Their value is more important than my value in reality. I’ve also realized I can’t get every deal. The more I’ve quit trying to get every deal, the more I’ve gotten back. I’ve realized I’m not in the control I thought I was. Letting go of the control has made a lot of things better.

What’s the biggest difference between you and other agents?

I ask myself that sometimes. My first thought is passion. And I think it’s also dedication. And probably focus. I don’t do anything halfway. I didn’t get into this business for flexibility. I got in because I need to make a living. I’ve never thought of it as less than a real job. It’s more of a real job than I’ve ever had. At the outset I had to outwork and out hustle everyone else. Sometimes I’m competitive to a fault but not as much as I used to be.

Chapter 2

Why Move to Wilmington?

From its majestic beaches to its history-rich downtown, Wilmington is a magnet for newcomers. Since 1980, the city’s population has grown from a modest 44,000 to more than 109,922 in 2012. As late as 1990, the area was a little-known sleepy coastal town. But the extension of I-40 eastward meant residents of the Research Triangle set their sights on the sea, and its gateway, Wilmington.

Today Wilmington is roughly the same size as, Berkeley, California or Cambridge, Massachusetts. Like these similarly sized towns, Wilmington is also a college town, being the home of the University of North Carolina at Wilmington. The city, the eighth-largest in the state and the county seat of New Hanover County, is built on a seafaring tradition and is growing thanks to its ever-developing industry and economy—and an international airport.

Wilmington residents range from students and workers at the university to active retirees to young families drawn in by the friendly welcome and the laid-back lifestyle. However, don’t let its casual demeanor fool you. Wilmington means business.

BEST CITY DESIGNATIONS

Wilmington appears on several best city lists thanks to its vibrant economy and superlative quality of living.

The Milken Institute recently ranked the Wilmington area #51 in its list of Best Performing Cities. Each year the Milken Institute, an independent economic think tank, ranks major metropolitan areas based on factors of economic growth, including long-term and short-term measurements of employment and salary growth and indicators of high-tech output.

Yet perhaps the most impressive is the metro area’s long-term job growth. The Milken Institute ranked Wilmington #5 in terms of five-year relative high-tech GDP growth from 2004-2009; #8 in five-year job growth over the same period; and #8 in five-year wages and salary growth from 2003-2008.

Mainstream media has been jumping on the Wilmington wagon as well. CNNMoney magazine ranked Wilmington #7 of 10 on its Business 2.0: Top 10 Cities, Where to Move Now Listing for its 37% projected gain in home prices over five years.

Financial publication Kiplinger’s selected Wilmington as among 367 metropolitan areas to consider for its list of Best Cities for the Next Decade.

RelocateAmerica, a real estate website, ranked Wilmington among its Top 100 Places to Relocate, thanks to warm temperatures, casual lifestyles and a touch of the ‘new south charm.’

Outside Magazine included Wilmington on its 2012 Best of the Best cities list due in part to its a renewed economy that has been fueled partly by an active filmmaking sector.

Noting the area’s small town charm and big city amenities, Coastal Living magazine named Wilmington a Coastal Dream Town.

ECONOMY

As the nation rebounds from the recent recession, so has Wilmington. This metro area managed to weather the financial storm well, and by many measures, it came out ahead.

In early 2013, Forbes.com ranked the city #52 for Places for Business and Careers, and #18 in Cost of Doing Business.

Growth and Expansion

Wilmington was a relative secret until a couple of decades ago. But with the extension of Interstate 40 to the area, the path was paved, and people have been filing in. Certainly, the Research Triangle further north and west in North Carolina has received its due share of accolades, consistently ranking atop Best Cities lists. It’s perhaps due to a love of both North Carolina’s laid-back, friendly lifestyle and the beach that the word has gotten out on Wilmington.

Between 2000 and 2010, Wilmington’s population swelled 40 percent, due to an influx of both working-age adults as well as retirees.

The people keep coming to other parts of the Wilmington area metro as well. Brunswick County was #14 in counties in population growth from July 2005 to July 2006, according to U.S. Census estimates.

While job creation has been negative across much of the rest of the country, in Wilmington; it’s keeping largely apace. In a recent edition of the Milken Institute’s study Best-Performing Cities 2008: Where America's Jobs Are Created and Sustained, Wilmington ranked #6. Two other metropolitan areas in North Carolina—Raleigh-Cary and Durham—also made the top 25; and another six N.C. areas made the top 200.

Real Estate

Wilmington has fared well throughout the financial crisis is seeing early successes during the country’s financial rebound. While home values have plunged some 20 percent elsewhere in the United States, throughout much of North Carolina, the real estate market has remained relatively stable. This is due in large part to the state’s continued job growth, population growth, and steady employment. That’s caught the attention of the media, and in May 2013 Business Insider named Wilmington the #13th healthiest home market in the United States.

While Wilmington’s average home prices did decrease nearly 14% during the recession, those prices have rebounded. In the first quarter of 2013 Wilmington-area homes sold for 6.6% more than they did for the same quarter in 2012.

It’s important to look at the big picture, however. Certainly the past few years were an anomaly thanks to the aftermath of the housing bubble. Wilmington’s statistics put this into perspective. During the five years ending after first-quarter 2010, home values in the area had appreciated 20.3 percent, #48 in the country. Over the last 10 years ending the same period, Wilmington home values had gone up 62 percent, for a national rank of #78. And during the 20-year period ending first-quarter 2010, the Wilmington area ranked #30 in home appreciation, with a rise in value of a whopping 166 percent over that time. Plus, according to Forecast-Chart.com data, during the third quarter of 2010, prices have nearly reached a plateau—a positive sign in this market—with a depreciation rate of only 0.37 percent, indicating that the market is reaching its inflection point.

The local housing market’s strength makes it a prime spot to invest as well. Moody’s Economy.com in its November 2006 Business 2.0 report ranked Wilmington #7 in its Best Place to (Still) Invest list. Of course, affordability is also key. According to recent stats on Trulia.com, the median home price was $170,000, compared to a nationwide median of $192,800.

Housing Health…

#17 Healthiest Housing Market, - Builderonline.com,

#30 in home appreciation, 20 years ending first-quarter 2010, Forecast-Chart.com

#78 in home appreciation, 10 years ending first-quarter 2010, Forecast-Chart.com

#48 in home appreciation, five years ending first-quarter 2010, Forecast-Chart.com

Investment

#7, Best Place to (Still) Invest, Moody’s Economy.com Business 2.0 report

Employment and Business

Like other facets of its economy, Wilmington’s employment rates and workforce have remained largely buoyant during the past few years, despite overall conditions negatively affecting most other metro areas. Despite Wilmington’s relatively small size, it’s remained a strong contender in attracting and keeping a skilled, talented workforce.

Just let the major business news outlets tell you. Inc.com ranked Wilmington #37 in the nation in its Best Cities to Do Business list, thanks to the city’s overall economy, lovely environment, ability to attract a workforce and its general affordability. Wilmington also made Inc.com’s list of best places to conduct small business. Forbes magazine agrees: in 2009, it ranked the city #13 in its Best Places for Careers and Business list. The same year, Fortune Small Business ranked Wilmington #14 as a Best Place to Launch Business. In 2010, the city ranked highly on the same Forbes list.

It’s easy to see why. Some major employers in the area include General Electric, DEL Laboratories, International Paper, DuPont, Corning, Verizon Wireless and PPD, which recently built a multi-million dollar riverfront tower to serve as its global headquarters. Forbes.com columnist Joel Kotkin singled out Wilmington in a June 2009 article as being among one of the top cities for tech-sector growth. Smaller firms in the area falling into this category include AAI and Pharmaceutical Product Development.

Plus, the city’s seafaring roots mean that Wilmington’s port is still booming. From 2002-2007, the container terminal at the Port of Wilmington showed double-digit growth in business, including a compounded annual growth rate of 11 percent and 7 percent for general cargo, according to statistics from North Carolina Ports.

The U.S. Highway 421 corridor is developing into a nexus for new business as well, thanks to the transport infrastructure, cost of gas and ample rail service, reported Greater Wilmington Business Journal in September 2010. The Cape Fear Future initiative, backed by the Greater Wilmington Chamber of Commerce, has also made major inroads into developing the area’s economy and ensuring its stability.

The Job Market and Business Development

#13, Best Places for Careers and Business, Forbes.com

#32, Best Places for Careers and Business, Forbes.com

#14, Best Place to Launch Business, Fortune Small Business, 2009

COMMUTE/TRAVEL TIME

Much of the Southeast is infamous for lengthy commutes. This is not the case in Wilmington. According to statistics from CNNMoney.com, the median commute time is 15 minutes, compared to the national average of 20.8 minutes. Only 6.1 percent of the population has a commute time of 45 minutes or longer, meaning more time at the beach and a better quality of life.

EDUCATION

Wilmington is the home of UNC-Wilmington, and carries an educated air. The branch campus is consistently in the U.S. News and World Report rankings. In the 2012 guide, the university received its highest ranking ever: #5 among public master’s universities in the South. Out of the 118 institutions in the South that provide the full range of undergraduate and master’s programs, UNC-Wilmington ranked #14. It also got ranked #5 among the magazine’s Up-and-Coming colleges and universities in the South. U.S. News also gave the institution a nod in the Best Undergraduate Business Programs category. In 2010, UNC-Wilmington ranked #311 on Forbes.com Best Colleges in America rankings, topping out better-known North Carolina institutions such as Elon College, Warren Wilson College and N.C. State.

Certainly the city’s ocean environment helps budding young students of the sea; and UNC-Wilmington’s marine biology program certainly holds its own, ranked among the world’s best by college ranking guide The Gourman Report. The city is also home to satellite campuses of Shaw University and Mount Olive College, as well as Cape Fear Community College.

The city as a whole is quite educated. According to statistics from the U.S. Census Bureau, in 2000, 37 percent of Wilmington’s population aged 25 or older had at least a bachelor’s degree, compared to 22.5 percent across the state.

In terms of K-12 education, public education in Wilmington are run by the New Hanover County Public Schools, which have gained notice and accolades for assigning students based on their parents’ income, ensuring diversity in student body. There are four public high schools, six middle schools and 23 elementary schools in the district. Three elementary schools are STEM (science, technology, engineering, math) magnets; five elementary schools and one middle school offer year-round education. The district