While many would prefer more posh surroundings, the rooms at Nags Head Inn are clean, comfortable and spacious. The real plus of this location is that it is on the beach, so you can fall asleep at night, listening to the sound of the waves. There is a small indoor pool and whirlpool, in case the weather outside isn't cooperating. There's also great shopping nearby. Their special offering a free night after purchasing 3 nights, is helpful for those on a budget.
My only caution is that before you book, make sure their renovations are complete. I was there in mid-March 2013 and was awakened some mornings to drilling and hammering.