Mission Forge

This is a very good 'basics' coverage of what the home inspection process will be like and how you as an agent can get the most out of the situation for your client. It involves a lot of communication, remaining focused on the best interest of the client, and ample time to read discover and request. This episode is good for first time agents, experienced agents who want to go back to the well, and even buyers who can learn a little bit more about the value a strong buyer agent brings to the process of purchasing a home.

There are no show notes for this one. It was a representation of the organic redevelopment of my answer the question why are you in business.

Insider tips for buyers who want to look at homes preceeded by a quick overview of the settlement landscape. 
1. Proceed to look at open houses 
2. Call the listing agent 
3. Proceed unrepresented 
4. Work with the agent that you already have a relationship with. This will probably represent the majority of consumers 
5. Locate and utilize a showing service. 
6. Interview potential buyer's agents and try to select one who best fits with your personality and also displays the ability to deliver good service.

On July 1st new laws took effect in the state of Virginia some of them impacting the world of real estate and the forms that we use. Please enjoy this summary of those changes.

In thIs podcast I dig into the reasons why lis ing agents and sellers offer different cooperative commissions. My advice is that listing agents should stay focused on advising the seller what commission rate or flat fee will get the job done depending on the current market conditions. Listing agents should avoid making decisions and giving advice to sellers based on duties to buyer's agents and reactions of others in the industry. Losing focus of the best interest of the seller by focusing on what others may think could be an example of undisclosed dual agency.

I had the chance to walk through a forest near Luray, VA that had recently been burned in a fire. I was left with so many thoughts of comparison to our industry of real estate which feels as though it's on fire right now. Please listen and share.

Five insider tips to negotiate a commercial lease. Number one understand the needs of the owner. Many times perspective tenants don't understand that the value of the lease directly impacts the value of the building. Number two the length of the lease is critical to the owner, and longer is better. This gives you the ability to negotiate in the earlier phases of the lease which leads to number three annual increases in rent. You can use the lease duration to increase later and take your breaks earlier on. Step 4 build out and repairs are generally not something an owner wants to take on so plan to complete these repairs on your own. Repairs specific to your business would not create a negotiation point however repairs generally improving the property could be another source of negotiating with the property owner. Number five repairs during the lease should be expected to be the responsibility of the tenant especially when they are smaller. Owners would likely be expected to pay large repairs. Make sure this is spelled out in your lease terms. Pay attention to your ability to bring traffic that could positively impact your neighbors. be proactive in offering to cross-promote other businesses. Keep in mind the owner of the building wants everyone to be successful. In a successful climate he can minimize or she can minimize vacancy and maximize the value of the building through higher lease rates.

A shift towards something already in place

Commercial real estate has operated this way for a long time.

Commercial listings generally do not offer compensation to cooperating brokers of buyers.

It does not mean that buyer representatives are not paid.  It means that buyers must ask the listing broker if there is any cooperative compensation available.  

In the event the answer is no, then the agent must consult with the buyer and refer to the exclusive right to represent form.

Clear differences exist between commercial and residential.  Immediacy is generally not present in commercial as it is common in residential.  Rapid moving residential markets can be impeaded or slowed by this added layer of discussion (assuming the offer to compensate is withdrawn from the MLS.  Now the process has an extra layer of discussion which could retard the process and flow when time is of the essence.

  In addition, residential buyers have financing concerns that play into compensation that are not there in the commercial world.  For instance, buyers with VA loans are not able to make payments to the agent or to a vendor for repair.  That could be very harmful to some of our most important buyers.  It is potentially a dramatic erosion of one of their signature benefits.

Often times consumers will call the sign in commercial real estate and proceed with no buyer agent. In some cases they may ask the listing firm for dual representation and other times they may proceed unrepresented.  Residential real estate has methodically and purposefully moved away from this and comfortably gotten to a situation where buyer agency is clear and defined and common, while seller agency remains intact.  Both sides have agency and compensation did not increase.

  One really questions the benefits to the residential process that will result from the decoupling of advertising compensation in the MLS.  The theory on the ground is that since compensation is still permitted from the seller to the buyer’s agent that it will still take place largely as normal and hopefully with more transparency than before.

  The fear is that our most prized and vulnerable buyers will be sidelined, and may resort to calling the sign, perhaps out of desperation and frustration and perhaps in the hopes of trading representation for perceived savings to make a deal work.  The ramifications of thousands of unrepresented buyers who are financially sensitive could be devastating if they don’t have capacity to negotiate repairs, oversee important disclosures, review documents, navigate extensions, deadlines, review repairs and verify payments to vendors.  It really could be lambs to the slaughter in some cases---sadly out of needless desperation caused by the DOJ.

To be elected, a representative must be at least 25 years old, a United States citizen for at least seven years and an inhabitant of the state he or she represents.

The Constitution sets three qualifications for service in the U.S. Senate: age (at least thirty years of age); U.S. citizenship (at least nine years); and residency in the state a senator represents at time of election.

Members of the House of Representatives serve two-year terms and are considered for reelection every even year. Senators however, serve six-year terms and elections to the Senate are staggered over even years so that only about 1/3 of the Senate is up for reelection during any election.

Congressional districts are the 435 areas from which members are elected to the U.S. House of Representatives. 

There are 100 Senate seats, 2 for each state.

The compensation for most Senators, Representatives, Delegates, and the Resident Commissioner from Puerto Rico is $174,000. These levels have remained unchanged since 2009. 

Term limits at the federal level are restricted to the executive branch and some agencies. Judicial appointments at the federal level are made for life and are not subject to election or to term limits. The U.S. Congress remains (since the Thornton decision of 1995) without electoral limits.

My suggestion for reasonable term limits would be to attract more people to serve, remove incentives for a life in politics, roll implementation in the House to mirror the Senate. This will preserve institutional knowledge which is critical.

To attract a higher quantitiy of everyday Americans to do the unthinkable

run for congress

leave their family

leave their business

I suggest increasing the pay to something very substantial, such as $$350,000 per year.

In addition, there would be heavy incentives and benefits to protect juobs and business during service so the Congressperson could return home to what they left.

Senators would be limited to 2 terms and Representatives to 6 terms.

You are an independent contractor if you practice real estate. How much freedom do you have to direct your business the way you want to direct it? Do you have the ability to direct your business the way you know it needs to operate or is it inconsistent with the policies of your brokerage? Have you ever thought of leaving your brokerage but worry about the terms and penalties associated with relocating? I'd appreciate the opportunity to hear about your business and share everything I know about our brokerage with you. To arrange a consultation please email me at [email protected].