Well all the hub bub in town has everyone excited. Precious little Waxhaw is always at it's best when the rumors are swirling. It just makes me smile. As long as it's harmless, that is.
Latest story floating around is about the "Naked Jogger." It seems as if there is a woman who "wears shoes and socks, and not much else," taking to the streets of Waxhaw at night. Even desecrating our famous Foot Bridge. Well, I guess that depends on your opinion if nakedness is ok or not, and whether or not this "lady" is attractive or not.
But any reason to boost morale in these trying times for me. And Waxhaw can stand to be "woke up" a little.
And for those of you who keep asking me if I am the nekked Jogger of Waxhaw (& there have been many to ask): My response: "Y'all should know - I don't .... JOG!" :-)
What do you think? Have you seen her? Anyone have a good description? Somebody send me a pic for my blog, if you get one.
Just had a thought... Can we keep the name and make the mascot look like James Dean? I mean seriously, I'm all for that look. And with all the motorcyclists that live here... Might be a great compromise.
I feel that it's utterly rediculous! Then the media gets involved and makes it a "story". Come now-little minds-little thoughts. Someone needs to find something to do productive
What's the deal with Rebels? They didn't own any slaves, they just fought. The plantation owners and politicians like Thomas Jefferson owned them. I don't see any objections to the schools named after them.
That's very true Les about Thomas Jefferson and many of the other politicians in our history having owned slaves. So why don't they rename the Jefferson Monument too? (I'm not really suggesting that but... you get my point).
There is a line here somewhere folks... a point b/w history, heritage and offensiveness. My question is,IS this offensive? You tell me how then.... I really want to try to understand.
Now this is not US History we should be proud of ... by no means. But it is history. It was the times. But do we really learn anything by re-writing history and renaming anything, and trying to pretend it never happened? Another question floating around in.my mind this morning....
I hope we all go throughout the day loving our fellow man (and hey wo-man too!), no matter who they are, and where they came from. And know that our strength comes in learning from our mistakes. Not re-writing them.
May. 13, 2009 - Mixed Beverage Referendum Petition Info
FROM MARK & PATTE AT SOUTHSIDERS:
Our first week in the petition drive to bring mixed beverages to Waxhaw is over and off to a great start! We’ve had many residents step forward and offer to help. Patte and I have been over whelmed by the response. We’ve even had volunteers return completed petition forms and leave with more.
In February of 2008 Patte and I asked the town council to put this on the May 2008 primary ballot. Essentially the response from the commissioners was that there wasn’t enough time.
Over the past year, in spite of continual pushing, the needle has moved very little and a vote is still pending. The council has slated a vote for July 14th. If it fails, there won’t be enough time to gather petition signatures and still get it on the November ballot. It’s become necessary for the citizens and businesses of Waxhaw to assume the responsibility that the town council has shirked for years.
In the current economic climate, we see other business communities benefiting from the sale of mixed beverages while the restaurants and merchants of Waxhaw struggle to survive – some haven’t. We see our own residents going to other areas of Charlotte to get what they want while contrary to the vision of Waxhaw’s 2030 comprehensive plan our downtown area isn’t vibrant or well visited.
We have a daunting task ahead of us and we need 1,886 signatures. I’m confident that with everyone’s support, we can get this on the ballot – pass it and renew the process of seeing our town prosperous with a multitude of job offerings and an abundance entertainment and dining establishments.
There are petition forms available at Southsiders, if you’d like to pass some around your neighborhood or if you want to come in and sign the petition yourself, every effort is going to help.
Regards,
Mark & Patte Kennedy
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Southsiders
113 E. North Main Street
Waxhaw, NC 28173
704-243-1325
Feb. 26, 2009 - How Banks Are Destroying the American Builder (and the American Dream)
If you rob a bank, you will be prosecuted. Heavily prosecuted. However, the government is fully allowing banks to rob the American Homebuilders, that are barely hanging on by a thread as it is, in these tough economic times. Let me share with you some of my personal knowledge and experiences of what they have done to my family.
Let me give you some background info:
I have been married to a homebuilder for 17 years. Although we are now separated, and pending a divorce, it truly pains me to see what they are doing to the business that we BOTH put our hearts and souls into for over 10 years. Our company is very representative of the average American small homebuilder. We built approximately 50 homes in 2007 and cut that down to about 20 last year. We are no longer building, but just trying to sell off remaining inventory. After that, I don't know what the company will do, other than the occasional pre-sold custom build.
We pride ourselves in our reputation. Not only with our customers, but within the industry. And our family names are on the business. We planned on handing it down to our children, if they so choose. Chris was a third generation homebuilder. Now, barring a true miracle, it probably won't go to a 4th generation. We are the faces and the hearts behind the names. We don't want you to look at us as a statistic or just "another number." Everyone in this business has a "story" and these days it often involves a lot of pain.
We moved here for better opportunities from West Virginia back in 1999. Soon thereafter, Chris learned the "tools of the trade" from his Uncle, who has been in the building business for around 20 years. It came natural to him, as his grandfather, and great uncles, had all been builders and tradesmen as well. I got my real estate license shortly after he started building, and together we partnered into building our company into a business that in 2007 was listed as one of the top 25 builders in Metro Charlotte (even against the BIG guys).
While over the last ten years, we have enjoyed many rewards and opportunities of this business, we have never been "filthy rich." We have lived comfortably and purchased our family farm, after a 3 year search, for an affordable amount. We paid our employees well, and considered them not only our business partners, but our extended family. Our last remaining employee will leave "our family" tomorrow.
Unless you have ever owned a small business, you can not possibly know how much it hurts to let good, hard working employees go, thru no fault of their own. Worrying about how they will feed their families and pay their bills. But we have our own children to feed, and our own bills to pay too. But we have ALWAYS paid...
This is where the banks come in. While we have made many tough decisions, dismissed employees, consolidated offices, and made huge cut backs, we have always paid our bills. This includes thousands upon thousands of dollars of commercial loans and their interest "carry." Most of these notes were issued a year or more ago. At one year, these notes are either "called" or "renewed" by the commercial lenders.
We have never, to my knowledge, missed a payment. Something that we're proud of, but now feel like we are also being penalized for. Banks will NOT negotiate with a debtor that is not behind. In fact, upon renewal they are RAISING the Interest rates on these commercial loans in SPITE of the prime interest rate being SIGNIFICANTLY lower, than when the original note was issued! This is also in spite of our good payment history. Our personal experience has been a 2-3% rate hike over a commonly issued 6% original commercial loan from last year.
The banks say that this is "risk management." I think it is HIGHWAY ROBBERY, and that at the very least I want the American public to know what they have done. They are "socking it to" the ones of us who are left, to make up for the ones already gone. They are running us out of business with these rates and practices. Many, many of our builder and trade friends are truly suffering. Losing their new and personal homes, filing bankruptcy, and yes even ... going hungry. These are not just statistics people, they are families.
Today, I got a call from a closing attorney regarding a transaction scheduled to close tomorrow (thank God!). But the banks and the title insurance nearly derailed this sale, which would have been devastating not only to us, but to the homebuyer, I am sure. It seems that banks have requested that no title insurance be given unless, not only the builder signs there are no lien waivers, but that each and EVERY VENDOR who EVER worked on that home, signs lien waivers too.
This news comes a DAY before closing! And many of the original framers, roofers, and various vendors are now out of the business. We have no idea how to even track them down. We have a few new ones on our list to complete warranty work, and that is about it.
I never thought I would say this, but I am glad the home has sat finished for nearly a year. It was our saving grace. I remembered that in the state of North Carolina, that all mechanic's liens HAVE to be filed within 120 days of completion (certificate of occupancy). I told Chris to call back the Attorney's office and tell the Title Insurance Company AND Bank of America, to "wipe their hineys" with the CO, and that they better not stand in the way of this closing. Yes indeed, I was mad, but I am gonna get my paycheck tomorrow. And Chris will pay off this loan, at least, to another greedy lender who recently raised our rates extraordinarily.
And hopefully, we still have enough left in our dwindling savings to keep paying for our own home, and for our children's meals. But we are now at a definite crossroads, where we too are contemplating, pursuing other means of providing. Even though we both take great pride in our individual companies, and what we have accomplished, that won't keep paying the bills.
And consumers (and buyer agents too), something else you should know, just because you see that the Seller/Builder is walking away with a few thousand dollars from the closing, please do NOT think they have made that all as profit. I have recently had to stop going to closings because I had an obnoxious buyer who went off that we "made money." He didn't realize that my family personally took a $40K loss on that house, and just the lender got paid. I was so mad but restrained myself to the point of just shaking my head, walking out, bursting into tears, and punching the wall (instead of him) on the way out of the building.
Don't worry I still review all HUD statements prior to closings for Sellers, and attend with my buyers. But I admit I get too emotional, knowing how much money I, or Chris, or one of my other builder friends, is losing at that table...
I do not look at these things with regrets. I do have hope. I have experienced this before growing up in the hills of West Virginia, and knowing what hungry and poor, really is. It's not that bad ... And I pray it never is. I do know these hard times are just life lessons that teach us to appreciate the good times that we have had, and that hopefully we will have again. I don't mean to be the "downer" or want sympathy or empathy. But we are the face of the American builder that these lending practices (i.e. ROBBERY) are destroying. The American public can either choose to ignore it and turn away, or fight back.
Twitter Friend @SteveSherron, of the Monroe Scoop took some of my simple shots, taken with my i-Phone and made this little video. This is my farm, Blessing Hill, located in Waxhaw, North Carolina. I love the outdoors and even when it snows, I like to be out "in it."
One of the great things about Waxhaw, is that there are many scenic farms, and beautiful parks, like Cane Creek where you can enjoy the great outdoors, and scenic views. And yes, we do REALLY have four seasons. These shots are proof!
I hope all of you take time out of your busy day, to stop and look around you, and enjoy the great outdoors. Have a great day!
P.S. Please check out Steve's site at theMonroe Scoop for lots of local information, and more great video's. Get the Scoop on Union County!
Nov. 18, 2008 - Sharing Your Passions Online Builds Business
Life is not about work alone, but your life's passions can help you build business. Too often we don't network with the people that share those passions, which is a huge mistake. It's a natural building block for business and friendship when you already have something in common. And you need to do this both off and online. Who want's to work with, or refer to, a boring, all business agent? I don't find that niche particularly drawing.
Some of my passions are first and foremost: My Children. I love my kids. They come first, even before business. And if you don't get that, well... we probably won't work well together. However, I'd love to hear about yours too! And I talk a lot of real estate at those soccer and basketball games. And the cool thing is, I don't even have to hard sell. Wearing my shirt or coat with my logo just about always draws a real estate question or two. Parents care about their real estate investments and want to know what is going on with the market. And finding those great backyards for their families is so much fun!
Another HUGE passion of mine includes horses. I have always loved horses and ever since I can remember, I was always asking for one. Now I own a Dutch Warmblood and a Thoroughbred, and my daughter shares in that passion, with her own Hunter Paint pony, Jackson (picture above). I often find myself at shows networking not even realizing it. Land and horses go together, and when I am at events or even just at the barn practicing, all kinds of real estate questions come up. And I absolutely love looking for land for the those future beautiful barns! My friends that are in the horse world, know that I know what it takes to find good property, with good facilities, topography and grasses for their prized horses. That honestly is my favorite real estate endeavor.
I also love dogs. And whether my clients have just one or many, we naturally "get" each other. I understand that they may not want to be in a neighborhood with covenants and restrictions. They may want to search for land for a kennel (only work with reputable breeders of course!) where there won't be noise ordinances. Having shown English Setters and Cavaliers for over 5 years now, I know that they also search for homes with "doggie" doors, fencing, and for existing or possibility for future, grooming facilities.
I also love music and watching sports. I started out as a music major and come from a musical family who often had their "sound rooms." Good acoustics are important in evaluating and recording yourself! And watching sports (esp Football) is a pastime that carries over into finding great theatre rooms, that allow for entertaining and good sound and clear visuals. I've helped lay out and design 3 Theatre rooms for myself, and many more for some of the new construction homes I've sold. Experience teaches you a lot in good flow, and in good video and sound!
Last but not least, my favorite passion INSIDE of a home, is the Kitchen. I love to cook and I love wine. And many of my clients also share those passions, and look for homes with chef style kitchens, double ovens with built in griddles, big pantries, and wine cellars. And if I can't find an existing home for them, I can help them plan those features with my new construction experience. That is soooo much fun! And I love even more being invited back to their new homes for dinner and vino! :-)
Customers out there looking for someone who shares one or more of my passions - I'd LOVE to work with you! Agents who "know" their clients need someone who understands their interests, call me! I'll take great care of your referrals.
I have observed a lot of agents reporting on the market, giving stats, and not much else. Those things are good, and should be incorporated into your business plan, but focus on your passions on and offline. Find customers with something in common with you, and you AND your clients will be much happier for it in the end. Cheers!
Nov. 13, 2008 - Lifestyle Marketing is Necessary for REALTORS
I have learned a lot about Social Networking in the last few months. Still learning every day about the Do's and Don't's. And there is certainly lots to learn. But there also seems to be a bit of a divide in thinking on how much is too much. There is definitely a fine line there, and one, that I am STILL trying to figure out.
I admittedly post a lot on Twitter and Facebook. I didn't realize until I got a Direct Message via Twitter that it was bothering anyone. There were some good points in the message, and I did not take offense to it, but tried to learn from it. For example, I am learning to use Direct Messaging more on Twitter when the conversation goes back and forth more than a time or two. Apparently, people don't like "listening in" on those conversations. Which I understand, NOW that it was pointed out to me. :-)
However, I also have seen/heard comments made by Tech/SEO/Web experts who say they don't want to see personal posts about us going to fairs, our animals or our kids, etc. Hmmmm....I don't think they understand our business. We really do have to "sell" who we are, and where we live, and what we can do, both business and recreation wise in our area, to attract customers, or even referrals from like-minded agents! It's called Lifestyle Marketing, and it's what makes or breaks an agent, especially in a tough market like this one.
I promise I will try to keep in mind, that I really don't want everyone to "be in my business" in a personal manner, but those pictures/comments of my life, paint a portrait of who I am, and the kind of person you will be working with, to find you a great home, or take care of your referral client. I think those things are much more important in our business, than say perhaps someone who sits behind a computer all day developing websites, where it probably doesn't matter as much.
That's not to say that I don't appreciate their concern and try not to go overboard either. I know we have a lot to learn from each other, and I truly want them to keep me in check! I just also want them to understand we ARE different in our marketing techniques. While I am trying to keep an open mind, and listening to their thoughts and concerns on what we do as agents, right or wrong while utilizing all the various forms of social media, I do also hope they keep in mind that the real estate business is highly personal.
Customers and even other agents (who send referrals) want to know we are Mom's, Farmers, Dog or Horse Lovers, into Wine, Ski, Cook, Garden,Volunteer for Children's Charities, etc, before they even choose to work with us. Posting listings and statistics all the time is not going to cut it online, when it comes to whether somebody wants to spend days/weeks/months looking for a home with us. In fact I would say a lot of customers would be turned off by that, if there were no personal interjections whatsoever. The hard sell is proven NOT to work in our business.
I love my job, and I love sharing the things that make me happy living here in the Carolinas. And hopefully some of those things will strike a chord with others, and want them to work with me and live here too.
...WHEN THEY PICK AND CHOOSE WHAT THEY WANT TO HEAR!
I had the unique opportunity to speak to the media not once, but twice this past week, while at the NC Association of REALTORS convention, earlier this week. Well, that was an eye opening experience for me!
Well, it was very interesting to me to see what "tidbits" they edit out to get what they "want to hear." My comments were much more upbeat and positive for the future in actuality, but this interview was just the tip of the iceberg. Overall, this story wasn't a horrible report.
However, in the Tuesday edition of the Charlotte Observer, I was (MIS) Quoted as saying my business was down 50%. While I did state that, it was NOT the end of my sentence! Nor the beginning! My "quote" was prefaced that my market had a double whammy, because not only were we hit here in Union County with the market downturn, that the new APFO's and other anti-growth ordinances, as well as the sewer moratorium, which all affects new construction (my primary focus - now changing! )... had hit us as well. Union County was the 6th fastest growing county in the NATION last year, but I doubt if it will be in the top 20 next.
I hate it more than anyone that my business has slowed, but I also told the Observer that my year last year, was a BANNER year, so it's hard to compare and I am just back to a "normal" market year. Of course, they didn't say all that. (But I will be happy to take your referrals now! LOL )
The Observer then took all that out and made it seem like the entire market was down 50% in Waxhaw, when the resale market is actually doing pretty well. Just great! I took quite a bit of razzing at the Convention for the piece. But I also found it interesting that I also had MANY agents come up to me and say... "Finally someone telling the truth."
Which also makes me wonder, how do you be honest and upbeat (I was trying really hard!)? I know a lot of complaints have been issued against NAR for not being totally forthright with their market reporting, and that their "It's a great time to buy campaign!", which I personally like, makes it hard to get sellers to also be realistic with pricing and selling terms. So where is the balance? Can it even be done?
I don't think being "chicken little" or the "ostrich" with my head in the sand, is a good way to go, but the media always seems to put their slant on the story, no matter how balanced and accurate you try to be.
So in hindsight, I am thinking... how do we talk to the media, or should we even try? How do we chose our words carefully. Hence the reason for my post. My experience should serve as a warning... Your words can and will be taken out of context. But it's also a reminder that in ALL things that the media reports on, that we need to keep in the back of our mind, that those things too, also might not be fair and balanced reporting either. Be careful out there.
Post your bad experiences, warnings, or even good ones here... I'd really like to learn more about what everyone else has to say. And I hope everyone will take a moment to "read between the lines" and re-evaluate the information provided to you by the news outlets.
Allen Tate Realtors® recently launched an excellent ad campaign, including a television commercial which emphasizes that, just as the weather is local, so is the real estate market. It starts with a weather forecaster saying, "It's -10 degrees and snowing EVERYWHERE!" Doesn't make sense does it? They go on to say that real estate is similar, and that the Charlotte market is local, and different.
SNOW FORECAST FOR CHARLOTTE IS WRONG!
Very true. While numbers of sales are down slightly, and days on market is a bit longer, Charlotte has bucked the national trend by actually posting a 1.8% increase in sales price for the month of January. The highest in the nation, and the only major metro area posting an increase at all.
What makes Charlotte different? Well, we had fewer investors over the last 5 years over inflating our markets. While many metropolitan areas had it's share of "flippers" who sent their markets into meteoric rises, we were taking the slow and steady route. So we did not have the large bubble to burst. While many of us in the business were a bit envious of the increases in other markets over the last several years, most of us are now grateful we did not indulge in that experience. Sellers are definitely happier.
The local homebuilder's association has also done an excellent job in managing our new homes market, which helps the resale market maintain prices as well. They observed what was happening around the country and prepared our market by cutting back on land acquisitions, holding permits to a minimum, and also thinning their overhead not just in employees but with construction costs, as much as possible. This has kept the market from having a glut of new homes sitting, effectively managing the supply vs. demand. My hats off to them!
The Homebuilder's Association of Charlotte has also launched an incredible marketing tool to educate buyers and sellers about our local market. It is called, "Charlotte Between The Lines," and offers statistics and expert real estate forecasters who study our market intensively, as well as the national markets. If you have clients who are moving to Charlotte, I highly encourage you to forward this site to them, and also to a REALTOR® , like myself ;-) , who understands our market. My e-mail is Lori@BeeRealty.com .
As REALTORS® and homebuilders partner together to educate buyers and sellers about local market conditions, I forecast a bright future here in Charlotte. Do I think we will remain immune to the national market? Certainly not, as we honestly have already been impacted a bit. But if we allow consumers to believe the national media "knows everything everywhere," well, we allow "perception to become reality." We here in Charlotte are fighting back, and helping buyers to realize, it truely is "A good time to buy, " and that "real estate is local."
By the way, it's actually going to be 70 degrees and sunny here in Charlotte today!
The primaries are open us, and national, state, and local elections are up for grab. All of this in a year where our industry has so much to be concerned about. So many of us are out here in cyberspace, complaining about a down market and increased taxes, but how many of us are registered to vote, and ACTUALLY do vote?
It is a sad note to consider that more votes may be cast for American Idol this season than in a national election. Meanwhile, our soldiers are dying for our freedom to do so... sad, sad.
Also, are you making your voice heard? When was the last time you wrote to one of your representatives? Or called your local planning office? Do these people even know who you are? Make yourself and your concerns known! One tip, be polite and professional. Just as in this business it gets you a lot further, it will also further your concerns.
On this same note, have you made your contribution to RPAC? This non-partisan political action committee is our industry's best tool in my opinion. Your money is divided up on a local, state, and national level, which will make a difference in your business. Trust me, I have seen it, especially in the battle against local and state transfer taxes, and also in the new national housing economic stimulus package. I personally know that for every dollar I have donated, it has helped me to save thousands more back. And has put money back into the pockets of the homeowners and buyers we serve.
BEFORE the primaries is the absolute best time to have your contribution to RPAC make the most impact. Many local races in particular are decided in this election and not necessarily in the general elections in the fall. REALTORS® are under constant threat of sales tax on your commissions, higher taxes on your business, and increased real estate taxes, but many of those elected officials are chose this time of year!
I am very proud that RPAC is the #1 PAC in North Carolina. I hope it also is in your state. To donate in NC, please go to http://www.ncrealtors.org/extranet/rpac.cfm after you put in your user name and password. Make sure to designate your local association so the local portion will be returned to your area.
Feb. 21, 2008 - Full Moon Weirdo's & Other Bizzare Tales
ROUND TWO FOR THIS POST: AS IN THE MIDDLE OF MY FIRST WEIRD MESSAGE, MY PAGE LOCKED UP!
Ok, starting over again....
Today has been weird. Was it last night's eclipse or just the full moon in general? I don't know... but stuff has been crazy.
Started off with a REALLY RUDE customer who thought he HAD TO GET $50K off a $240K NEW home, in an area of $550K homes mind you.... And he called not once, not twice, but three times! Also he said he didn't want us calling him back (the Caller ID showed Bank of America) at work because he could get in trouble. Sheesh you think? Not too totally strange by itself but....
Then we had not one, but 2 subcontracting vendors stop by my office for paychecks for my husband's company. Mind you, all checks are mailed. Never hand delivered which is supposed to prevent them from coming here in the first place. One of them thought he should be paid, even though he had NEVER SENT A BILL! LOL. The other one thought his work had earned him the right to hit on my 50 something MARRIED assistant/fellow broker. Not once, but twice he asked her out! Where is our pepper foam!
All this made me start thinking about the many strange things that have happened to me on the job. Gosh, we've all had them.... and I'd love to hear your stories too. Here's one from me:
Have you ever wondered if the 25 foot + suit of armor conveys?
Yes, this Knight was my chaperone at a property in Sharon, South Carolina on a 123 acre parcel. I could see him from just about all of it (or was he seeing me????). We had to wonder - "does he convey?" And "how in the world?" And "what in the world?" I still don't know the story... the listing agent would never call me back. Maybe the Knight got her.
Well, I am getting ready to show another farm in about a half an hour, and looking for my rabbit's foot, rosary beads, and Bible.... cause if this day gets any weirder...
ANYWAY, SEND ME YOUR STORIES - PLEASE, SO I WILL KNOW IT'S NOT JUST ME! Thanks and watch out for the full moon weirdo's.
With the advent of stricter signage laws, how has this affected your real estate business? What do your customers think?
Here in North Carolina, there is a growing trend towards cities and towns implementing stricter signage laws. Many now forbid all types of directionals, others only allow them in certain right of ways on weekends. The city of Charlotte recently increased their restrictions as well as their fines starting at $100 and up to $1000!
Charlotte is not the only city as even many of the small towns I work in, for example Matthews and Waxhaw, also have strict signage laws. They basically only allows the on site sign in front of the home.
Many of these laws are in retaliation for national homebuilders who are notorious for putting 10 signs in a row on every corner for miles for the same neighborhoods. Now THAT, I understand trying to prevent as it is total overkill.... But come on, let people try to sell their homes! This is a confusing enough town directionally (esp. since they change the street name after every major crossroad!) to get around, especially for newcomers.
So, this has me wondering how our laws compare to those around the country. And especially in this down market, have you heard complaints from your listing and/or buyer clients? I know I have, and I now I can't even have directional signage for agent open house events. I have had the thought, more than once, that I wonder how elected officials feel about this when it comes time to SELL THEIR HOUSE! Better yet, I would love to catch them violating the sign law (ok, yes I am a bit devious ).
AND I FIND IT AMAZING THAT NONE OF THESE LAWS SEEM TO APPLY TO POLITICAL AND CANDIDATE SIGNS! We should step up about that one. I mean afterall, your home is the largest investment you make, and they are trying to stop you from marketing it when you need to sell!
Would love to have comments from everyone around the country, and especially here locally in Charlotte and Waxhaw.
"The Union County Board of Commissioners on Monday agreed to stop issuing water commitments for the next six months rather than signing off on a freeze on new home-building.
The unanimous motion, which passed was put forth by board Chairman Allan Baucom as a substitute to an earlier proposal from Commissioner Lanny Openshaw that would have also halted new residential building permits.
Baucom's motion will temporarily suspend new "agreeable to serve" letters for water connections from Union County Public Works, allowing 30 days for residents with already issued letters to claim their benefits.
The suspension excluded requests for minor subdivisions with five or less resi-dential water connections, while pushing an "audit" to determine the number of outstanding commitments."
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Well folks, if you don't have water already in Union County (the 16th fastest growing in the Nation), you better get hooked up REAL quick. This will not only affect builders and developers, but the thousands of laborers who depend on the industry for their jobs. In this down market, they are already hurting. This will also affect those who bought lots on speculation or for their future home, who will now be unable to build, unless they can obtain well and septic.
These measures were said to be put in place because of "out of control growth" and because of the drought, but I also wish to note that Union County officials turned down an opportunity to co-finance a water/septic system with Lancaster County, South Carolina some years ago. That has in hindsight, turned out to be very poor planning. Officials are now working on implementing a pipeline from Anson County, NC that will cost taxpayers millions and be a long time coming to the fast growing Western portion of Union County.
Agents who work Union County, NC need to be aware of this issue as it affects disclosure issues on property sales. If you need more information, please send me an e-mail to Lori@BeeRealty.com .
Jul. 10, 2006 - APFO is a New Form of Tax with Worse Results
Proposed New Home Taxes in Union County Are Bad Idea
By Dr. Donald Jud
The just completed study of owner-occupied housing development in Union County underwritten by the North Carolina Association of REALTORS® shows that new housing development creates substantial economic benefits. The benefits derive not only from the jobs created during the construction phase but also from the spending after construction of the households that occupy the new homes. In the absence of the current moratorium, single-family housing development potentially would have generated an estimated annual $336 million in additional output, 2,206 net new jobs, and $22.0 million in new county and municipal tax revenues. Moreover, these impacts are not one year only but represent the average annual impact of new development through the first 10 years of occupancy. New single-family development thus creates an economic annuity that provides substantial economic benefits to the county over time. By imposing the current building moratorium, county officials have chosen to forgo these benefits.
Some Union County officials want to impose a $21,213 tax on each new home constructed, claiming they need the money for new schools. The study, however, shows that the residents occupying the newly build homes actually pay more in taxes than existing-home residents who have an equivalent number of school-age children and drive an equal number of automobiles. On average, new-home households pay $5,504 in city and county taxes, while other demographically similar households living in existing homes pay just $4,720. The present value of the $784 excess per household calculated over 40 years (the expected useful life of a new school) at 5 percent is $13,452. The average per pupil cost of new schools built in Union County since 2000 is $12,375. Since the average new-home household has only 0.5 school-age children, new-home households pay more than two times the capital costs of the new schools their children may require, assuming that will they choose to enroll in public schools.
If residential development in Union County pays its way, why is there such a clamor to tax it? A look at the Union County budget provides the answer. From 2000 through 2005, local Union County revenues, less proceeds from the issuance of debt and intergovernmental transfers, grew 8.7 percent annually. Revenues actually rose 0.8 percent faster than the rate of inflation plus population, so real tax revenues per capita increased despite the effects of the post-2000 recession on the county economy. The problem is that county spending outstripped the increase in revenues, rising 12.8 percent annually. The cost of general government administration rose even faster surging 14.8 percent annually. The difference between the growth in revenues and expenditures was largely financed by new debt. During this period, county governments issued $187.6 million in additional debt to cover their excess spending.
While it is easy to point to new housing development as creating the need for new and higher taxes, the problem is not the new homes that create new jobs and more than pay for themselves. The real problem is the too rapid growth of government spending. If government officials just would limit the growth of spending to the rate of population plus inflation growth, thus keeping real spending per capita constant, new single-family development will pay for itself.
If officials must raise taxes because they can’t limit spending, imposing an onerous tax on new homes is an exceeding inequitable way to proceed. Contrary to what some may imagine, real estate developers will not pay the new tax. They will simply pass the tax on to new home purchasers driving many of them to live elsewhere. Census Bureau research indicates as many as 54 percent of the new home purchasers forced to live elsewhere will be existing county residents. In addition, developers will shift some of the tax backward on to land owners, lowering the price paid for developable land and forcing existing county land owners to absorb a large share of the new tax.
The new tax also can be expected to drive up the price of existing homes as well as that of new homes, forcing first-time home buyers and others to pay more for all types of housing. Higher prices for existing homes are expected from the change in demand that occurs as some home buyers shift from new homes to buying existing homes because of higher new-home prices. Research by the John Locke Foundation and others shows clearly that cities with large development taxes have higher home prices and more rapid rates of housing price inflation.
In Union County and elsewhere across the state, it is common now to hear government officials and others urging the need for tax increases to pay for the costs of new residential development. Some of the new tax proposals are very creative involving the imposition of new developmental impact fees, real estate transfer taxes, and adequate public facilities ordinances. County residents concerned with future economic growth and the equity of the tax system should forcefully reject proposals for onerous, inequitable taxes on new homes. Instead, they should demand that officials control the growth of spending and confine any revenue increases to traditional forms of taxation, where taxpayers clearly understand exactly who pays the higher taxes.
(Dr. G. Donald Jud is professor emeritus at the Bryan School of Business & Economics in Greensboro. He can be reached at juddon@uncg.edu)
Waxhaw, NC is a quaint "bedroom" community for Charlotte,NC, but is quickly growing. It is known for it's friendly people, historic downtown, equestrian heritage, and quirky atmosphere. Share your thoughts about the changes you've seen and what you think Waxhaw's future holds.
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)... had hit us as well. Union County was the 6th fastest growing county in the NATION last year, but I doubt if it will be in the top 20 next. 
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SNOW FORECAST FOR CHARLOTTE IS WRONG!
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