The Purple Dog Blog by Steve Schwartz

Gas Tax Holiday - What will they think of next?

America has become the land of short term fixes. Instant gratification. Free money! Free gas! Woo hoo! What ever happened to gold ole fashion hard work, a can do attitude and long term stability. How about accountability for your actions? Ok, now I am ranting. Back to the topic. This is not intended to be a politically charged, finger pointing, he said she said. So I will just refer to them as "They". Now, "they" want to "give us a break" by taking out the 18 cents per gallon we pay for gas from Memorial Day to Labor Day. On the surface, it seems great. But when you look at the per car cost savings and what that savings impacts on a bigger scale, its not such a good idea. That 18 cent tax actually goes toward building new roads and infrastructure to make our lives easier in the long run. Hear that, long run. That means NOT right now. Back to the ..(read more)

To Buy or Not to Buy?

Pessimists dominate the financial and economic news right now and may have you scared to buy a home. In addition, fears of the inability to qualify for a loan have many would be buyers putting home buying on the back burner. So, should you go for it, or wait? When economic times get tough, the Federal Reserve eases (lowers) the Federal Funds Rate which is the rate at which banks can borrow from each other. The goal here is to free up liquidity in the market place and spur economic growth. Don’t confuse the Fed cutting rates by thinking that will instantly affect Mortgage Rates. Mortgage rates are not cut by the fed. Mortgage rates fluctuate based on supply and demand. When there is a lot of competition for loans, lending institutions lower their rates to be more competitive. Likewise, when there is less competition, rates go up. Another misconception is when the Fed lowers the rate at the “Discount ..(read more)

Fort Mill School District Info

Schools, Schools, Schools - currently one of the biggest draws to the Fort Mill area. It definitely played a big part in my family's decision to move here. My wife and I have been very impressed with the two years our daughter has spent at Orchard Park Elementary. I can only expect that the two new elementary schools opening in 2009 will continue to provide quality education as we will most likely be moved from Orchard Park to the newly named Pleasant Knoll Elementary which is being built on Pleasant Road. My daughter doesn't understand why she will need to leave Orchard Park and is very sad about that, but explaining to her that all of her friends from the neighborhood will now be at the same school helped smooth it over. We also have friends who will be going into the new Sugar Creek Elementary being built adjacent to Nation Ford High. The passing of the bond referendum this year to start building Elementary #8 and Elementary #9 should ..(read more)

Fort Mill / Tega Cay Growth

Hey Fort Mill / Tega Cay locals! Remember when the only “sit down restaurant” in town was Fish Bones? Things are REALLY changing fast around here…. Ok, I’ve never been a big fan of Wal-Mart. I just don’t like the way the 800 lb gorilla bully’s the little mom and pop shop keeper. Well, it’s kind of hard to hate the new Tega Cay store. I thought Wal-Mart coming to town wouldn't be such a good thing, but it’s just so darn convenient!. Not only does the facade look great, but the parking is wonderful. No more fighting for a spot at the one in Rock Hill or up in Charlotte. I can run by on the way home to pick up something and it's not a huge trip. And now it looks like we're getting even more options to eat out - Dunkin Donuts going in beside McDonalds at 160 and Gold Hill Road (not sure if Baskin Robbins will be in with them as other locations do), Breadsmith Bakery ..(read more)

Fort Mill, Tega Cay, and Lake Wylie Real Estate Outlook

Listening to the National Media drone on about how dismal things are in residential housing is enough to make you cry, get a little sick, then cry again. And, after seeing the California Market first hand last month, it’s not pretty. But, you have to remember that the National numbers are not necessarily an accurate reflection of what’s going on right here in Fort Mill, Tega Cay, and Lake Wylie. Here’s the facts: The Charlotte Metropolitan Area was one of 3 major cities that actually experienced increased appreciation in 2007 by a little over 4.5%. The average price for a single family home for January, 2008 was only very slightly down from the same period in Jan 2007 ($218,610 down from $219,270) which represents less than 1 percent. The number of sales transactions is down and houses are sitting on the market a little longer, but it’s no reason to pack your bags and flee for Mexico. A “slow” market is a ..(read more)

Tega Cay, Fort Mill, and Lake Wylie Real Estate Outlook

Bubble this, bubble that, bubble burst....... etc etc etc. Real Estate markets in California, Florida, NY, and many other places had the luxury of double digit appreciation for a long time. Sources say that the Florida market was up 100% and California was up 150% in early 2006. Now things are sliding down, inventories are up and the whole picture is changing..... Not true in Fort Mill, Tega Cay, and Lake Wylie (except for waterfront). Our market has experienced very normalized appreciation levels over the last few years and now we are not over valued like some of these other areas. Our exception is waterfront. Properties on Lake Wylie and Lake Norman have (in some cases) doubled in the last 5 years. But for the vast majority of homes in our area appreciation has been very normal. Now people from NY and out West are flocking to the Charlotte Metro Area. Between hurricanes and insurance rates in FL, it seems like the whole state is ..(read more)

Real Estate Myth: Real Estate Agents are all Filthy Wealthy

Real Estate Myth: Real Estate Agents are all Filthy Wealthy FALSE: Some are. And they earned it by being the best of the best in an occupation where more than 95% drop out within 5 years (most in the first year). As for the vast majority, they are at best making a living, or are just flat out struggling. Most people don't realize what comes out of the commission at the end of a transaction. Many people have their hands in the pie of the total real estate commission. For example, a $200,000 house at 6% commission results in a $12,000 commission. At first, this seems extraordinary to pay the listing agent. But typically, the first thing the listing agent does is give 1/2 to the buyer's agent. Then each agent shares a large percent (could be up to 50%) with their company. Now they are down to $3000 and they still have to pay taxes on that money and pay for marketing. At a tax rate of 35%, they are down to ..(read more)

Real Estate Myth: I'll save money if I don't use a buyer's agent.

Real Estate Myth: I'll save money if I don't use a buyer's agent. Wrong - Many buyers think they can strike a deal with the seller by coming in without representation. This is an unwise assumption. The seller has already negotiated a fee with the listing agent and his/her brokerage. If the listing agent is going to have to handle both sides of the transaction, he/she is going to end up having to please two parties with opposing views on every aspect of the transaction. In North and South Carolina, this is called Dual Agency. Dual Agency is certainly possible and the agent ensures the success of the transaction by acting honestly and ethically on behalf of both sides. The reality is that the listing agent is going to end up working more than twice as hard. Would you take on twice the responsibility for reduction in pay? When purchasing New Construction, the same principle applies. You are often dealing with a corporate entity (the ..(read more)

Real Estate Myth #1 - I already found the perfect house, I don't need a REALTOR!

I already found the exact house of my dreams, I don't need a REALTOR. FALSE- Touring people around to find the perfect house is only 10% of the real estate agent's job. There's still 90% of the job to do. That's where you truly need a good REALTOR (a.k.a. Project Manager). After the house is found, you still need to write the offer. How are you going to write the offer? Stop and think about that for a second. Most consumers don’t know. Do you know the critical aspects that need to be in the contract to protect your best interests as a buyer? Will your contract protect you legally in case of default on the other party? What else should you submit along with your offer to strengthen your position? After all this, you are going to need to negotiate the offer. Do you have real time access to comparables to do this adequately? How are you going to know if you are not vastly overpaying for the home? Will it appraise? What are the ramifications if it ..(read more)

Upcoming Real Estate Blog Topics

So many things to talk about…. I’ve got a hundred things going on in my mind about Real Estate. Topics I plan to cover in the next few months are as follows: * The perception of REALTORS (and how we can improve it)
* All the hands in the REALTORs’ commission
* Real Estate Myths
* Real Estate - Late night TV (infomercials)
* Real Estate TV Shows
* 10 Things your agent should be doing for you
* Thinking of getting into Real Estate? (The first year without sugarcoating)
* Who should get into real estate?