You’ve now identified a business opportunity and completed a tour of the business facility. The seller’s answered your initial questions and provided you with business financial information. Once you review the income statements, balance sheets and tax returns, you can decide if you want to make an offer. There are two ways to communicate the offer to purchase the business. You could choose to utilize a contract or binding agreement or you could utilize a Letter of Intent or non-binding agreement. A contract must be written by an attorney and immediately binds you and the seller, and will require submission of earnest money. You’ll include certain contingencies in the contract that must be satisfied and the contract’s highly definitive.

You may not want to be so definitive at this point in the purchase process and if so, would choose to utilize a Letter of Intent. The LOI doesn’t have to be written by an attorney and provides a simple means of reaching mutual agreement on basic terms and conditions. The LOI can be submitted without earnest money which makes it a better choice for many buyers.

You should be prepared for a counter offer from the seller and to respond with a counter offer as well. These exchanges are typical as you work to reach mutual agreement on the price that will be paid for the business. Remember that your pre-offer analysis of the business revealed a value and you shouldn’t allow your emotions to persuade you to pay more than the business is worth. Purchasing a business must be an analytical process.

Once you’ve reached mutual agreement on the basic terms, you’ll move to the due diligence phase of the purchase process. It’s during this time that the seller shows you proof of the financial representations he/she’s made. Make sure to carefully examine books and records to verify business performance and profitability. If the sales and profit history is inconsistent, ask questions and get answers. The due diligence process is critical to making the right purchase decision.

When you’ve completed due diligence and are satisfied with the results, you’ll be asked to sign a contract and submit earnest money. Contingencies will remain in the contract that must be satisfied and you must eliminate them one-by-one. You’ll now complete the lending approval process if you’re seeking funding for your purchase. Then you’ll meet with the landlord if the business operates in a leased space. If you’re purchasing real property with the business, you’ll need to complete inspections of the property.

Finally, you’ll attend the closing and take ownership of the business. The seller should provide training and help to facilitate an orderly transfer of the business. Be sure to seek sound legal and accounting advice throughout the purchase process. As a business owner, you’ll take control of your future and provide job opportunities for others. Good luck with your business venture.

A significant percentage of buyers come equipped with enough bad credit baggage to fill a truck, what with having done a recent short sale or having a recent foreclosure or deed in lieu of foreclosure (same as a regular foreclosure, but it sounds nicer) or strategic foreclosure (a purposeful decision to walk away from a debt they CAN pay but don’t WANT to pay – don’t get me started on these).   

Combine that with the over-reaction of underwriters making it nearly impossible to qualify for a loan if the buyer has to put gas in the SUV on the way to the closing (“Oops, sorry, that gas charge 15 minutes ago just bumped your debt ratio out of whack”) or if part of the buyer’s down payment is the gift money received from Grandma for graduation and Grandma made the money having a garage sale or the buyer’s publicly traded employer has recently filed a negative outlook report with Wall Street or any number of other scenarios. 

Add in the burden of complex Good Faith Estimates which have to be redone every time anyone sneezes and you have a frustrating mix.

Our government has decided that consumers must be protected from themselves and unscrupulous lenders by instituting the Frank-Dodd Act and the Consumer Protection Financial Bureau, which finally has a leader. The Federal Trade Commission has also weighed in, contributing a 22-page policy requiring special disclaimers and disclosures WHENEVER ANY CONSUMER RECEIVES ANY MORTGAGE INFORMATION FROM ANYONE, INCLUDING REALTORS®. Real estate practitioners are specifically named in that policy as being responsible for any financial information they pass on to consumers about mortgages. AND real estate practitioners must retain a copy of the exact information provided in their files for 2-6 years! 

But wait! Don’t panic! This is the time to be thankful for having licensed professional mortgage lenders in your offices. All the flyers, posters, emails, rate sheets and other collateral generated by Metro Home Mortgage, for example, already contains the required disclaimers and disclosures. AND, by allowing a MHM Home Mortgage Counselor (what we know as the loan officers) to directly email or convey this information to your prospective buyers, you are no longer responsible for cataloging and retaining all the info provided to the consumer. Thank goodness we have professionals right in our offices who can handle this latest consumer protection requirement for us!

In addition, BHGRE Metro Brokers makes sure all of its company generated materials – such as the Kitchen Sink brochure and other marketing – conforms to every rule and regulation handed down by the FTC.

If another mortgage company is providing you with information, you should ask them to create their own materials that you can use. If you want to include this kind of information in your own emails, newsletters or flyers, be ready to include ALL of the disclaimers that are necessary.

(Note: The opinions expressed in this blog are those of the writer only and do not necessarily reflect the opinion of the management of BHGRE Metro Brokers!)

1. Research Well Performing Businesses

First, complete the necessary research to identify a short list of business types that perform well in a weak economy. Determine if franchise opportunities provide a greater chance of success. Franchises historically have a higher start-up success rate and give you a proven business system, training and name recognition. You’ll have to decide if you want to start a business from the ground up or purchase an established business. The established business will cost more however, you get to avoid the painful start-up period and you can see current and past performance.

2. Interview Business Brokers

Once you’ve identified some targets, you can then interview business brokers. Hiring a professional business broker will provide several advantages. The business broker will ask important questions about your background and your interests. He/she will represent you during all phases of the purchase process. Your ability to effectively negotiate with sellers will be enhanced by working with a business broker. When you interview brokers, be sure to get references and prove to yourself that he/she has all of the necessary skills and experience to guide you to a closing table. Remember; it’s not the job of the business broker to sell you a business but rather to help you find the right business opportunity.

3. Prepare Questions and Visit the Facility

When you find a business that looks good, you’ll schedule a visit with the seller and see the facility. Make sure you prepare questions in writing prior to the visit and get the seller to answer them. How does the business get customers? How is the work completed? How many hours each week does the seller work in the business? How much competition within a five mile radius? How much employee turnover? How much technical knowledge is required? Ask enough questions to fully understand the nature and scope of the business.

4. Request Financial Information

If your visit goes well, you’ll want to request business financial information. You should look at income statements, balance sheets and tax returns for the current year as well as up to three years prior. Remember: The tax returns are the most critical financial documents. Lenders believe what they see on the tax returns since income statements and balance sheets can be manipulated.

You have to take emotion out of your decision making and rely on correct analysis. When the right business opportunity is in front of you, it will stand the test of your scrutiny. If at any point in time during the due diligence phase you find yourself feeling uneasy, turn and run like a scalded dog. There will be other opportunities to consider.

See my next blog post for the final steps in the purchase process. In the meantime, what businesses do you believe would be good investments?

Sometimes, I hear agents say that their goal is 50 or even 100 transactions. Even a team of agents would have trouble meeting these numbers, and I hear this from a single real estate agent. If that wasn’t bad enough, they only completed 10 transactions the prior year.

Setting lofty goals is a good practice, but it’s also important to set goals that can be reached. When your ambition is too high, it can begin to look daunting and unattainable, which could end up setting you back.

Here are some realistic goals that will help you get on the right track in 2012:

• Work more hours: Is it a coincidence that the top agents are always the ones I see around the office? No. The more work that you put into this business; the more you’ll get out of it. Remember, home is a distraction. Get out of the house.
• Gain new clients: A goal of gaining more clients isn’t as difficult as it seems. Whenever you’re out, strike up a conversation. Ask if they know anyone that is interested in real estate. Wear your nametag, and you’ll be surprised how many people just come up and start asking you questions. I always hosted open houses, and they’re still a good source of buyers.
• Follow up with your sphere: Referrals are a big part of our industry. Gaining a referral from a past client, family member or friend is a slam dunk in this business, because you’ve already crossed the biggest hurdle – gaining their trust. Don’t let your sphere of influence forget that you’re in the business of real estate.
• Get involved: Not only are the top agents always at the office, but they’re also involved in their local boards and other community organizations. Don’t just sit on the sidelines. Networking with fellow agents can net you more referrals.
• Find a new niche: Whether it’s foreclosures, mountain homes, in-town properties or another specific field, it’s always a good idea to broaden your horizons. Take classes and speak with other agents that serve those clients. It might be easier than you think.

While real estate has definitely taken a turn for the better – sales are up and many agents had increased revenue – we aren’t out of the weeds yet. Don’t believe the hype. Temper your expectations and succeed in 2012.

What are some of your goals in 2012?

Replacing an older furnace, swapping out single-pane windows for more efficient double- or triple-pane models, and considering a move toward solar energy are all ways to make a dramatic difference in your home’s energy consumption, but none comes cheap. While you wrestle with whether or not to make these larger investments – which certainly pay off in the long run – there are any number of inexpensive, subtle shifts you can also make that will have you working toward the same goal much more quickly and affordably.  

Eliminate Drafts and Heat or Cool Only the Rooms You Use

According to the U.S. Department of Energy, as much as 5 to 30 percent of a home’s energy costs often go right out the window due to drafts and leaks. That’s right. If there are cracks and gaps around your windows, doors, electrical outlets, or window air-conditioning units, you could be throwing away hundreds of dollars every year.

Take action now by sealing or filling as many gaps as you can. If you can’t afford to replace old doors or windows with newer, more efficient ones, instead install weather stripping along doors or low-cost plastic sheeting over windows. Also caulk or seal holes or air penetration around faucets, electrical outlets, or wiring. Any reduction at all of air coming in or out will help lower energy costs and reduce overall energy consumption.

In winter and summer months, keep doors and vents to rooms that don’t get frequent use closed. There is no sense in heating or cooling a room that sits empty. You can always open the vents to the guest bedroom when you know the in-laws will be visiting for the weekend.

Inspect and Clean Heating and Cooling Equipment Regularly

In the average U.S. home, more than 50 percent of energy costs go toward heating and cooling. With that in mind, ensuring that your HVAC equipment is functioning efficiently is vital to keeping utility costs in line. The U.S. Department of Energy, along with most manufacturers, recommend inspecting heating and cooling equipment annually.

Changing filters – both on forced-air furnaces and air conditioning units – should also be a regular part of your home maintenance routine. “I clean my air conditioner filter once a month or once every two months,” says Joseph Seabra, a certified master electrician and electrical expert for Web-based consumer helpline JustAnswer.com. “Cleaning the filters, the grill, the return areas…all helps cut down on electrical costs by increasing the efficiency of the equipment,” he continues. “These are simple things that the typical homeowner can easily do him or herself.”

Switch to Compact Florescent Light Bulbs

The U.S. Department of Energy estimates that lighting alone accounts for about 10 percent of your electric bill.  To bring that figure down, assess the wattage of the bulbs you use throughout the house. In some spaces, you may be using 100-watt bulbs or higher where 60- or 75-watt bulbs would work just as well.

For even greater savings, consider switching to compact florescent lamp (CFL) bulbs, which require as much as 75 percent less energy to provide the same illumination as incandescent bulbs. CFLs do cost more – as much as three to 10 times a comparable incandescent bulb – but they last six to 15 times as long, so the added expense at the outset more than pays for itself. Plus, CFLs generate less heat, which can further lower your home cooling bills in the summer months.

Comment below with any tips you have to slash energy costs.

The ideal female real estate shoe wardrobe, all of which should be kept in the trunk of an agent’s car at all times for instant access and use would include:

1)     Sneakers, tennis shoes, tennis runners, athletic shoes or whatever you call them for previewing properties. Previewing is fast-paced – in and out of each property in five to ten minutes, covering dozens of properties in a couple of hours. Previewing ten homes equals running a mile; I’m sure of it.

2)     Hiking boots for walking land or previewing mountain properties (“Why, yes, I did walk all the way to the creek”).

3)     Designer four-inch stiletto heels for attending other agents’ luncheons and caravan open houses (“Why, yes, I always dress this elegantly and never break a sweat!”). These can also come in handy as weapons, if needed.

4)     Wedges, which can substitute for the stiletto heels from the front but give away the wearer’s faint-of-heart status when viewed from the side.

5)     Driving shoes or moccasins after leaving the swanky agent luncheon to avoid the dreaded “Realtor heel”, the telltale worn spot on the heel of the right shoe caused by friction with the car mat under the accelerator during the 40,000 miles you drive annually.

6)     Dressy and casual flats or low heels for actually showing properties to buyers/tenants. We always want to project a professional image but not necessarily intimidate our clients and customers by drawing attention to the dressiness of our attire compared to the buyer’s/tenant’s attire. My rule has always been to dress one or two levels above what I expect the buyer/tenant to be wearing. And I have advised the buyer/tenant to dress “comfortably” to view properties. HINT:  The higher the price of the property, the higher the heel.

7)     Waders, preferably chest-high, for showing new construction on rainy days. Seriously. Little rain boots or even Wellies may not provide the “protection” needed. If your shoe budget doesn’t allow for some good old reinforced hunting waders, ask the builder whose property you are showing to meet you at the curb with waders. 

8)     Snow boots are ideal if there’s snow on the ground.

9)     Golf cleats can really come in handy if it’s icy outside. They might help you avoid an embarrassing fall. I bet a lot of agents wish they had these in Atlanta’s ice storm in January.

10)  Flip flops or sandals for showing beach-front property (we wish!).

11)  Clogs = NO. No explanation needed.

Men, you can skip the stilettos if you prefer, but would substitute your most brilliantly polished dress shoes.

Needless to say, all of the above should be “slip on” models or use Velcro fasteners to facilitate slipping off shoes after entering a property, especially when the owner has posted a “Please remove your shoes” sign. This, in turn, necessitates that socks or stockings (does anyone still use this term?) be in good condition and MATCH. Slipping off your loafers to reveal your heel protruding from a threadbare sock undermines your credibility as a professional and objective agent.

But where do you go to get absolutely overwhelmed by holiday light displays? Georgia has some great spots that are sure to make your jaw drop!

Atlanta Botanical Gardens – Garden Lights, Holiday Nights

The Atlanta Botanical Gardens went with something a bit different this holiday season, and you’ll immediately notice it when you are greeted by hot pink and electric blue lights at the entrance. The “Garden Lights, Holiday Nights” show, which runs through Jan. 7, boasts nearly 1 million energy-efficient LED lights around the 30-acre garden in unusual colors.

While the show might lean towards the “artsy” side, it doesn’t make it any less beautiful to behold. Holiday songs play in certain areas, and the lights change hues to the beat of the music. There are also LED illuminated butterflies, dragonflies and bees.

Located in the heart of Atlanta’s midtown, find out more about the show at the Atlanta Botanical Garden website.

Stone Mountain Park Christmas

If you haven’t been to Stone Mountain Park, be sure to visit before Jan. 1! The entire park has been decorated with millions of lights and tons of fun amusements. Stone Mountain has really gone all out with the Christmas theme including more than a dozen performances, a nightly Christmas parade, a full sized gingerbread house and more.

You can also take a walk down Wonderland Walkway, a tunnel of lights that leads to aSnowAngelPalace! Sounds incredible, right?

Find out more by visiting the Stone Mountain Park website.

Lake Lanier Islands Resort’s Magical Nights of Lights

Take a seven-mile drive-through a tour of animated holiday light displays at Lake Lanier Islands Resort. This can’t-miss holiday display is in its 19th year, and has continued to get better and better.

Some of the light displays include The Animated Carousel, The Twelve Days of Christmas, Santa’s Elves at Work, the North Pole Express, the Animated Sliding Penguin, Jack & The Beanstalk, Medieval Times Jousting Knights, a drive-through Icicle Tunnel and a stroll down Candy Cane Lane.

In addition, there is a HolidayVillage at the end of the tour, where you can roast marshmallows over a bonfire, enjoy amusement rides or just eat some delicious holiday fare. There’s more information about the Magical Nights of Lights, which runs through Jan. 1, at Lake Lanier Islands Resort’s website. 

Christmas at Pettit Creek Farms

If you’re in the Cartersville area, don’t miss out on Pettit Creek’s holiday lights display, which will be up through Dec. 30. Normally an active petting zoo, Pettit Creek brightens up during the holidays with a mile long drive-through light display.

While it may not be quite as big as some of the other attractions, it does have one distinct advantage: You can view the holiday lights from a hay ride with two live reindeer leading the way! Check out the Pettit Creek Farms website for more information.

Callaway Gardens – Fantasy in Lights

Through Dec. 30, Callaway Gardens will be putting on their holiday light and sound show. It features a staggering 8 million twinkling lights, and you can choose to either drive your car or ride the Jolly Trolley to experience more than a dozen lighted scenes.

Set apart from the drivable route, two spectacular scenes combine narration, music and choreographed lights to tell the stories of Twas the Night Before Christmas and The Nativity. The displays are simply stunning.

Find out why this has become one of the most popular holiday traditions in Georgia by visiting the Callaway Gardens website.

Are there any light displays that I missed? Sound off below!

All of this holiday shopping has reminded me that people have become so immune to poor customer service and are actually surprised when they receive exceptional service. On the flip side, companies usually only hear about the bad experiences. More often than not, you hear customers getting upset with an employee.

Sometimes complaints are justified, but that’s not always the case…just look at the latest Alec Baldwin rampage on American Airlines. Geez Alec, just admit you were wrong for having a meltdown or say you were just rehearsing a new role as an entitled actor.

Anyways, just remember, to acknowledge good customer service too. And while you’re at it, stop to think about the type of service you provide to your customers. Do you always go the extra mile?

Let me tell you one of my stories…

I recently flew Delta Airlines and the elderly couple behind me had luggage that was way too big for a carry-on. They managed to get it in the overhead bin after I took out an item in my carry-on at the flight attendant’s request. Unfortunately, I ended up leaving that item (an iPod with cash in the case) in the seat pocket in front of me when I got off the plane.

A couple of hours later, I called the airlines with no success. Everyone was sympathetic, but didn’t know how to help me since the company policy was to just report a missing item (and warned I’d probably never see it again).

I was mad at myself for forgetting it (and the flight attendant for asking me to remove the iPod), but decided to try one last ditch effort…emailing the president of Delta Airlines.

The next morning, the president had a team go on the plane and find the iPod. When they noticed the cash wasn’t there, they took apart the seats to try to find the cash. The president’s executive assistant called me personally to follow-up and two days later, the iPod was in my hands.

Wow! Talk about going the extra mile. I’ll never forget that customer service experience and will be forever grateful to Delta Airlines.

So what kind of customer service have you experienced lately?

Let me tell you about the time I lost my data. Well, it wasn’t actually mine. Being a technology worker, most of my time is spent protecting other people’s data, but much like a teacher calls her students “my kids” I call my customers’ documents “my data.”

In this case, I had foolishly allowed a server disk to exist without redundancy. That means when the drive failed (as all disk drives do, eventually), the server crashed. When the server crashed, everyone’s computers started vomiting errors. When that happens, people start speaking in tongues and their heads spin around backwards. The technical term for this is “Business Continuity Interruption.”

“It’s all okay,” I reassured, “I have a backup!”

Well, several hours and several buckets worth of nervous sweat later, I realized the backups were corrupt. The tapes were completely unreadable. At this point, I’m thinking of polishing off my resume and skipping town.

My last resort was to bring the disk drive to a company that could break it apart and copy the data, bit-by-bit onto a new disk. Three days later, we received a new disk (with “most” of the data) and a $1,800 bill.

In return for my heroic data recovery efforts, I earned some new ulcers and a valuable lesson:

Don’t mess around with your data.

If you don’t want to experience the cold wash of dread that comes with losing all your photos and spreadsheets, you should pick a backup strategy and implement it. Data backup is as old as the PC itself, but it has always been complicated and time-consuming. With the advent of cloud computing, it has become more accessible than ever.

Note: If you don’t know what the cloud is, read my previous post on cloud computing.

When you back up your data to the cloud, you trust a team of experts to ensure the backed up data is never lost or corrupted. It’s fair to say they know a lot more about this than you, and their bevy of servers and hard disks is a lot more reliable than that laptop you left in the hot car while shopping at the mall yesterday.

Most services today also allow you to access your data from any device with an internet connection. It’s nice to know you can access that mortgage spreadsheet you created on your home computer from your iPhone at the lender’s office.

Since this is the new hot thing, there are many companies competing for leadership in the space. There are also many different pricing models, so you should really shop around before deciding on a service.

Features

Here are some things to look for in a backup service:

Security

You are trusting strangers to host your private data for you. You should read their security statement, and it should be in plain English, not some legalese double-talk. Here is a great example: http://www.dropbox.com/help/27. If you don’t feel comfortable with the measures taken to secure your data, don’t use the service.

Ease of Use

The software better be really easy to install and maintain, or you won’t use it properly. You might accidentally put the data in the wrong location, or not set your folder to sync. The only thing worse than no backup is a broken backup.

Accessible Anywhere

You should be able to access your backed up data from your home computer, work laptop, mobile phone, and tablet computer. You’re on the go all the time, and your data should be available wherever you are.

Company Viability

If your backup company goes out of business, what happens to your data? Better to use one of the big players in the market and not have to worry about it.

Company Reliability

Your data should be readily available almost 100% of the time, and the service’s terms and conditions should state this explicity. Also, look up the company on the internet, and add the words “outage” or “data lost” to see if they’ve had issues in the past.

Computer Performance

If your backup software slows down your computer, you might turn it off. (I once had a user who turned off her antivirus software that brought her computer to its knees, right before a Nigerian scam email was sent to all her friends from her personal email address.) There should be almost no perceptible performance drop when using syncing software, the initial backup excepted. If your data is backed up, and your computer is much slower, drop the service.

Network Performance

These programs transfer a LOT of data across your internet connection. However, they should be smart about it, and it shouldn’t affect your normal working internet speeds. I have seen some backups cripple a network (I won’t name names, but they’re not in the below list). If this happens to you, switch.

Services

Here are some of the top services in this space. They all have their strengths, and you should do some extra research before committing to one. All of these services offer a free trial.

Dropbox

The current leader in this space, Dropbox installs easily and works silently. You get 2GB of free storage, and prices start at $9.99 / month for 50GB. It works on Windows, Linux and Mac OS X operating systems and Android, iOS, Blackberry, and Windows Mobile devices.

Sugarsync

SugarSync is very similar to Dropbox in behavior and usage, except it’s not limited to a single folder. You get 5GB free storage, and plans start at $4.99 / month for 30GB. It works on Windows and Mac OS X operating systems and Android, iOS, Blackberry, Windows Mobile, and Symbian devices.

Microsoft SkyDrive

Microsoft is now offering Office for free as a cloud application, and SkyDrive is intended to be used as storage for Office Web Apps. It behaves a little differently, as you can use it like a hard drive, but all of your data is stored offline (not synched locally). 5GB is free (25GB counting Office Web Apps documents). Works on Windows only.

IDrive

IDrive is more of a pure backup software, with the internet behaving as your backup device. It does have the synchronization features similar to Dropbox, but backup plans are created and managed by the user, which may be more difficult to use. You get 5GB for free, and plans start at $4.95 per month for 150GB (watch for overuse fees). Runs on Windows, Mac OS X, and iPhone.

Mozy

Mozy is another backup like IDrive, and it has sync features in Beta. You get 2GB for free and plans start at $5.99 / month for 50GB. It runs on Windows and Mac OS X operating systems and sync will include iOS and Android devices.

Amazon Cloud Drive

Amazon Cloud Drive is new to the game, but Amazon may just be the king of cloud computing. Heck, even Dropbox uses Amazon S3 to store your files. It’s for a more Do-It-Yourself user, as you must manually sync your files. 5GB is included for free, but plans are cheap and start at $20 / year for 20GB. ACD works via a web interface, so no software is installed on your computer.

box

Box is focused more on the business consumer, but works great for personal use as well. 5GB storage for free, and prices start at $9.99 / month for 25GB. Works on PC and iPhone, with Mac OS X support coming soon.

—

Your Turn

What about you? What are you using for your backup, and what are your likes and dislikes? For the record, I personally use Dropbox and have been very happy with it. However, these services all have a little have something that makes them special.

If you look at moving as an exciting adventure full of fun, new possibilities, then you’re halfway to getting your children on board for the ride. Your children will absorb your enthusiasm like little sponges. There will be some worries, of course, but you can defeat those with a little preparation and understanding.

Most children don’t like the changes associated with moving. The younger the child, the less able they are to “see into the future” as you do. They tend to focus on losing the security they’re used to, and they worry about missing friends and family.

You can make childish anger and doubt grow into a sense of wonder and adventure. You can do that by acknowledging and empathizing with the loss they feel and showing them how to balance their feelings with what they have to gain.

1. Communicate with your child patiently and frequently. Let your children know, step by step, what is happening and what is likely to happen next. Tell them what the move means to the family – how important it is that Mommy got a big promotion or that Daddy is opening a new office for his company.

2. List all the advantages there are for the child in the move. For example, will the family be closer to Grandma, the ocean, or another favorite person, place, or activity? Will they be able to see old friends and family frequently? Or at least at holiday time?

3. Show the child as much as you can about the new home. When you show your child their room, bath, and play area; make a game of it by asking where certain favorite toys or furniture should go. Have fun by showing your child the new house plans, or draw them yourself and let your child cut out furniture and toys to place in the rooms. Show your child a typical day in the home as you go from room to room.

4. Introduce your child to the new community online. Draw a map, and show how close Mommy and Daddy work, where schools are, where Aunt Bea lives, and other points of interest to help them orient themselves in their new surroundings.

5. Be ready for those “What about me?” questions. If your child is in scouts, little league, or other organizations, contact those associations for referrals in your new neighborhood or city. Knowing they won’t have to give up favorite hobbies or sports goes a long way toward helping children adjust.

6. Let your child participate. Make a fun activity out of researching services you’ll need online, like finding a new veterinarian for your dog. Older children can find blogs online about their new school.

7. Keep your child occupied by letting them plan and pack a box or two of their special things. Consider their input on new decor and the layout of their new rooms. Encourage them to take the time to exchange good-byes with friends and loved ones and get addresses, e-mail addresses, and phone numbers to stay in touch.

8. Try to stick to normal routines as much as possible. Let your children know that, although they will soon live in a new house, the rules of the household will still be the same. Bedtime is still at 9 p.m., and homework must still be completed before TV time is allowed. And although Mom and Dad are a little busier and distracted with the move, they love their children very much and are giving the entire household a new opportunity to grow.

9. On moving day, have a bag packed of personal belongings for each member of the family, being careful to include medications, clothes, and personal items. Let your children choose what amusements they wish to take along, and reassure them they will see their other favorite toys when they arrive in their new home.

There are also some very good children’s books on moving:

• Gila Monsters Meet You at the Airport by Marjorie Sharmat
• Berenstain Bears Moving Day by Stan Berenstain
• Saying Goodbye, Saying Hello by Michaelene Mundy
• The Moving Book: A Kid’s Survival Guide by Gabriel Davis

Your preparedness will go a long way in reassuring your children that their needs are being considered, even while big changes are happening around them.

1) Misrepresentation/Failure to Disclose Material Facts – Material facts fall into three general categories: Facts about the property (leaky roof, cracked foundation, termite infestation, water intrusion, the presence of mold, etc); facts relating to the property such as zoning changes, school redistricting or road construction; and facts that relate to a principal’s ability to perform under the terms of the contract such as a pending bank foreclosure or short sale situation.

Typical complaints of misrepresentation involve advertising a property for sale or rent with a greater number of bedrooms than is permitted by the property’s septic permit, or advertising a larger living area than was constructed pursuant to the building permit. Some complaints involve hidden defects that were discovered by an inspection performed by a previous buyer.

To avoid complaints of misrepresentation or non-disclosure of material facts, do your homework!  Don’t rely on information obtained from others – verify it through reliable sources. Check the accuracy of what you are advertising on MLS’s and websites. Our duty to disclose material facts extends to our clients, customers, and to all parties involved in the transaction, including the lender in a short sale situation.

2) Mismanagement of Trust Accounts – The Qualifying Broker is responsible for the proper handling of funds belonging to others, including the management of the trust account and trust account records. Avoiding these complaints means the Broker is constantly monitoring contracts to ensure that earnest money, security deposits and other trust funds are where they should be, when they should be. Agents can avoid these complaints by turning in trust funds to their Office Managers immediately and always depicting a true picture of who has the funds and when they will be deposited in every contract. Earnest money to be delivered later MUST be described as such in contracts.

3) Disputed Earnest Money and Tenant Security Deposits – Brokers are required to follow the exact instructions contained in the sale or lease contract before disbursing any trust funds.

4) Charges Against Tenant Security Deposits – The most common complaints are against licensees doing property management and involve charges for items such as carpet cleaning, appliances and charges for “damage” versus “ordinary wear and tear.”

5) Short Sales – The fact that a short sale situation exists constitutes a material fact that must be disclosed to potential buyers.

6) Drafting Legal Documents – License Law prohibits brokers and agents from drafting contracts, contract provisions, or any other legal documents, or from performing any other service constituting the practice of law. Agents must avoid inserting complex contingencies into contracts or addenda. If a transaction requires more than can be inserted into the blanks of a standard form, agents should consult with Broker Support. Under no circumstances should a broker or agent attempt to alter or combine approved forms that are not written to be used together. For example, don’t combine a regular Purchase and Sale Agreement with a standard residential lease form in an attempt to create a lease/purchase contract.

7) Disputes Regarding Contract Acceptance – Negotiations leading to a contract can be fast-paced, especially when agents find themselves communicating offers and counter-offers, as well as acceptances, verbally. An example of such a situation occurs when an oral counter-offer is communicated to the buyers, who orally agree to the new terms. That acceptance is orally relayed to the sellers, who now mistakenly believe they have a valid contract.

The Statute of Frauds requires that all contracts for the sale of land or for lease agreements exceeding three years be in writing and signed by the parties to be enforceable. Any changes must also be in writing and initialed by all parties.

The acceptance of short sale offers and counter-offers confuse many agents. Agents must remember that the owner shown on the tax records IS still the owner of the property and that a short sale is nothing but a financing contingency for the seller, which must be removed in order to allow the seller to convey good and marketable title.

8) Conflict of Interest – The most common complaints deal with dual agency. Dual agency presents an inherent conflict of interest because the same agent is legally representing both the buyer and seller who have different and competing interests. Full written disclosure and consent is required to legally perform dual agency and even that will not head off complaints.

Conflict of interest complaints also arise in connection with the purchase or sale of the licensee’s own property. Agents are strongly discouraged from showing properties they own to buyers they represent. If necessary, it’s better to terminate the buyer agency relationship and refer the buyer to another agent or broker and collect a referral fee.

9) Lack of Communication – A very large number of complaints cite failure to communicate with the client or customer. Frustration at not being better informed affects sellers with properties on the market, buyers worried about short sale approval status and landlords concerned about marketing or property maintenance.

The number one complaint from brokers and consumers alike is the failure of other licensees to return phone calls or emails. Return calls and emails promptly or arrange for a back-up agent to handle things while you are unavailable.

10) Loan Fraud – Allegations of loan fraud often result from agent trying to assist a buyer having difficulty qualifying for a loan or assist a seller trying to salvage any funds from a short sale. The rule of thumb is that any money which passes between the parties and third parties (including the broker or agent) MUST be disclosed on the settlement statement (even “extras” paid for by the buyer to the builder over-and-above the contract price). Such payments may affect loan-to-debt ratios. An agent failing to disclose this information to the lender may be committing loan fraud, which is a federal offense.

I am going to start with something I did to offend. Several years ago I had a bumper sticker that said “God BlessAmerica”. Innocuous right? Wrong, I actually had another driver pull up beside me and Say “What do you mean? Why don’t you have a sticker that says God BlessFrance?” I swear that is exactly what he said and he shouted it at me. I no longer have any bumper stickers on my car AND neither should you. It’s not professional.

Don’t have voice mail recordings that are musical, or a joke, or a blessing, or a catchy phrase. Keep it professional. Let the caller know who you are and that you are with Better Homes and Gardens Real Estate Metro Brokers. Let them know you are helping another customer right now and that you will return their call within a certain time frame. That’s it.

Your signature lines in all correspondence should remain professional; don’t add cute language or phrases. I see many agents with references to their interests and lifestyles and I cringe.

Always maintain a professional demeanor when speaking with your customers and clients both in person and on the phone. Unless they’re a lifelong best friend, don’t talk to them like a buddy. They are not your buddy. They are your customer, client or associate. Never use profane language of any sort with anybody connected to the business. It is extremely offensive.

The social network is a tricky place. Be sure you keep in mind that if you post pictures on Facebook of you at a bachelor party, you probably want that on a Facebook account that is separate from the professional real estate agent that you are. You don’t want to be thought of as goofy, wild or maybe even dangerous.

Manners never go out of fashion. If you are thinking of doing something that you are not too sure about, ask yourself “Is this unprofessional?” If you want to let it all hang out, do it in an empty cave in the middle of nowhere. Remember perception is everything.

Is there anything else you think I should add to this list?

Once 2012 begins, non-Realtors® will have to pay a $199 annual licensing fee for access to GAR Forms. The GAR Forms will recognize the NRDS numbers of Realtors®. When non-Realtors® try to access the GAR Forms and cannot provide a NRDS number, they will be offered the opportunity to pay the annual licensing fee online. No fee payment, no GAR Forms access.

“GAR (Georgia Association of Realtors®) has always exclusively owned the copyright to the GAR Forms. The Forms were developed by GAR over the last 20 years through the hard work, dedication, and effort of the GAR Forms Committee working in conjunction with GAR legal counsel. Much time, effort and expense has gone into the creation of the Forms and continues to go into updating and improving the Forms each year,” according to Anne D. Gault, GAR President.

As an attempt to attract licensees, some brokerages allow their licensees to affiliate without becoming Realtors®. Therefore, the use of GAR Forms by non-Realtors®, who are not paying dues to GAR to support GAR Forms and other GAR services, has become controversial. Realtors® are simply no longer willing to share their very valuable work and intellectual property with “free-loading” nonmembers at no cost.

Why GAR Forms are the Best

This is not a blog about the benefits of being a Realtor®; that’s a whole other topic. This is a blog about the fact that GAR Forms are the best real estate forms available to Realtors® inGeorgiafor many reasons:

• They are the ONLY forms written to specifically protect the interests of Realtors® while also being fair to the interests of clients and customers. Any agent who has dealt with contracts written by the buyer’s or seller’s attorney knows that those documents are NOT designed to protect the real estate licensees, and are, in fact, often very unfriendly to licensees.
• GAR Forms have been successfully defended in court and, as such, the risk of court challenges to GAR Forms is less than with others.
• GAR has a history of conducting defense of its forms in court when legal challenges have been brought.
• GAR Forms are extremely comprehensive and include Forms for just about any real estate situation a Realtor® may be involved in.
• GAR Forms have been prepared in conjunction with legal counsel working hand-in-hand with the GAR Forms Committee. Bear in mind that non-attorneys are not permitted to create legal documents and you will realize the importance of this.

GAR to Enforce Copyrights

Realtors® with rightful access to GAR Forms can anticipate several “situations” which may arise after January 1, 2012 when dealing with non-Realtors® who have not paid the GAR annual licensing fee. Realtors® should be on the lookout for:

• 2011 and older GAR Forms being used after the 2012 Forms are made available.
• Thinly-disguised versions of GAR Forms.
• Non-Realtors® attempting to borrow a Realtor’s® NRDS number.

GAR President, Anne Gault has informed all Realtors that, “GAR recognizes that it may have to use legal means to enforce its valuable copyrights and is fully prepared to aggressively do so.” Any occurrence of the situations mentioned above should be reported to GAR (or a member of Broker Support if you are affiliated with Metro Brokers!).

What are some of the practical issues we will encounter after January 1?

Will each non-Realtor® company devise their own version of all the GAR Forms? How many different versions of a Purchase and Sale Agreement will a Realtor® potentially encounter, read and understand? Some non-Realtor® firms are already announcing that they will have non-GAR forms available for their agents to use. How they can accomplish this in such a short period of time without simply plagiarizing GAR forms and arrange for distribution of these documents will remain to be seen.

What if a non-GAR offer is received on our listing? Should we “counter” on a GAR Purchase and Sale in order to protect our client by using a document we are very familiar with and which protects our commission rights? How will a non-Realtor® representing or working with a buyer respond to that? Can we use a GAR Counteroffer to respond to a non-GAR offer? Will forms “turf wars” develop between Listing and Selling agents/brokerages?

What if a non-Realtor® claims to have a buyer interested in our listing and calls us asking that WE write the offer since he has no access to GAR Forms? Will Realtors® mention in their listing remarks, “Co-op commission is (some reduced amount) if Listing Agent writes the offer”?

Will Realtors® be responsible for reading and interpreting non-GAR documents for our clients and customers? Or will Realtors® suggest clients and customers seek legal counsel?

Let’s all take a deep breath……

Hopefully non-Realtors® will either decide to become Realtors® or to pay the GAR annual licensing fee in the interests of ease of access to and preparation of listings and contracts.

Otherwise, hopefully Realtors® and non-Realtors® will conduct themselves with their clients’ and customers’ interests in mind. Realtors® receiving non-GAR offers on their listings will need to take the time to completely read the offer, get clarifications from the non-GAR agent when needed and even invite the non-GAR agent to present his/her offer to the seller and provide answers about that offer.

Hopefully GAR-using Realtors® and non-GAR using non-Realtors®, when co-operating on a transaction, can agree whether to utilize GAR Forms (more work for the Realtor®) or the “other” forms (more work for both since the Realtor will be required to study and understand the “other” forms).

What should we do and NOT do?

Realtors® should never refuse to receive or refuse to present any written and signed offer, even if it’s written on a paper towel.

Realtors® should not disparage other licensees because they do not use GAR Forms.

Realtors® should not overlook violations of GAR’s copyright, but document them to their broker.

Realtors® should present all written and signed offers, even if the offer is on a suspected “bootleg” GAR Form (but do document the illegally-used GAR Forms to their broker).

Realtors® should be happy and proud to be Realtors®!

They’re creaky and they’re spooky,
Overgrown and sooty,
They’re altogether pukey,
My REO lis-tings.

They smell and reek of urine,
Seem moldy and all furry,
They really are unnerving,
My REO lis-tings.

So get your rubber gloves on,
Your tetanus injection,
We’re going to go and check on
My REO lis-tings!

Okay, so REO listings aren’t the only scary listings, are they? I used to carry a bath towel draped over my shoulders when showing one listing in Dunwoody. The owner’s cat liked to lurk in the drop ceiling of the basement and every time I went down the basement stairs when showing the place, the cat would leap out of the ceiling and claw my shoulder. A couple of bloody
blouses later and I learned – be the first one down the stairs to spare any prospective buyers from attack and protect myself with the “towel shawl”.

And don’t you love the homes with murky, frog-filled pools? And the ones that literally have bats in the attic? Note to self: Always have the home inspector go into the attic first. Leaping cats are okay, but bats in the hair are not okay.

Horrifying Home Purchase

One of my favorite “horror stories” is about a new construction home that sat vacant for many months. While showing the property, the builder mysteriously appeared and offered to answer any questions.

There was a huge, totally dead tree in the side yard and a very large predator bird with huge claws and a hideous beak circling above, which landed in the dead tree. I asked if the bird were a hawk and the builder replied, “Probably a buzzard.” The back yard was over an acre and very overgrown. The prospective buyers wanted to walk back to the creek behind the property
and the builder warned, “Watch out for snakes!” I turned to the builder and asked him, “Do you want to sell this house or not? Are you trying to scare the buyers?”

Turns out the buyers loved the fact that it was isolated and loaded with questionable animals and bought the place. The day after closing, I got a call from the buyers describing the loud BOOM they heard in their basement the evening before. When they ran to the basement, a water pipe had burst (no use in a long, long time) and began to flood the basement. They
quickly shut off the water and scooped the water toward the basement door which led out to the overgrown, potentially snake-infested back yard.

When they opened the basement door, a literal wall of frogs fell into the basement, right into the water and began hopping all over the basement. Wet frogs everywhere!!! Fortunately, the buyers were “Yankees” and had snow shovels handy. They scooped up shovelfuls of frogs and pitched them back outside. Welcome to your new home!

Grave Yard Included

Another buyer called Broker Support after moving in during the fall. When raking leaves, he discovered two grave markers in his front yard.

Drowning Basement

A neighbor called to tell me that water was running from the basement door of my vacant corporate listing. Entering the house through the front door, nothing seemed wrong until I approached the basement door. It sounded like someone taking a shower in the basement. But that couldn’t be – it was an unfinished basement.

Going down the basement steps, it didn’t take long to see that the entire floor was covered with at least four inches of water. Water was cascading down from the main water line just inside the basement wall. The water was “dancing” along all of the electrical wires in the basement ceiling, creating a rain-like effect. Water was pouring from the electrical panel box.
All I can say is thank goodness the seller had taken out a home warranty!

What’s your ooky, spooky, eeky, slimy real estate horror story?

“Listing Broker ready!”

“Seller ready!

“Appraiser ready!

“Inspector ready!”

“Buyer ready!

“Selling Agent ready!”

“Closing attorney ready!”

“Buyer’s Lender ready!”

“Seller’s Lender ready!”

“Seller’s Lender’s Appraiser ready!”

“Seller’s Second Lender ready!” (it’s a Short Sale, after all)

The coxswain then announces, “CLOSE!” Pandemonium breaks loose in the boat. A couple of the rowers actually row one or two strokes, but the others are hitting each other with their oars, pushing and shoving. Papers and briefcases are flying out of the boat, clothing is ripped and eyes are blackened. Finally, the coxswain calmly announces, “SET A NEW CLOSING DATE!”

Does this sound too familiar? Why are most (or sometimes all) the rowers fighting each other and forgetting to row the boat? Are the rowers each counting on the other rowers to make progress but unwilling to do any of the rowing themselves? Or are some (or all) of the rowers believing that they individually know more than the coxswain about what should happen in the boat and how best to reach the desired destination?

The analogy is VERY fitting. All the parties to a real estate transaction MUST row in the same direction, toward the closing table, or a lot of energy is wasted and frustration sets in. Yet each of the rowers has a different boss he/she is trying to satisfy: The agents and brokers are independent contractors and don’t get paid till the deal closes. The Buyer’s Lender is worried about OK’ing anything without triple documentation and fingerprints. The Seller’s Lenders each want to salvage as much from the deal as possible without being duped by the Seller or crossing the line into deliberate obstruction. The appraiser is hamstrung by regulation and fear. The Seller has lost interest because he will gain little and lose much credit-wise. And the Buyer believes whatever he last read on the internet.

Who is the magical coxswain who can get all the rowers facing the same direction, actually rowing and rowing in unison? In this writer’s humble opinion, the coxswain is actually a tandem of both the Listing Agent and the Selling Agent. The Agents MUST work together or all may be lost. The Agents must actually turn their backs on the destination, face the parties to the transaction and their respective vendors and encourage them to row, row hard and row together. How?

1. The Agents must respect and cooperate with one another. Each must thoroughly understand, accept and perform their roles in the transaction. Neither is superior or “the boss” no matter how many years they’ve been in the business or how many deals they’ve done. If one has knowledge the other lacks, it’s not flaunted or withheld in order to make the other look bad. Each complements the other and coordinates behind the scenes with the other to make sure all bases are covered.

2. The Agents must appreciate the expertise and limitations of each vendor (rower) in the boat and know when each rower needs to exert himself/herself to propel the boat forward. The Selling Broker must coach the Buyer to begin rowing by providing all needed information to the Buyer’s Lender so that the Buyer’s Lender may begin rowing. The Buyer’s Lender must provide information to the Appraiser so that he/she may begin rowing. Meanwhile, the Listing Agent is coaching the Seller into rowing hard and strong by laying his financial situation on the Seller’s Lender’s table for examination. Then the Seller’s Lender(s) can begin rowing and giving instructions to their respective vendors to begin rowing. Let’s not forget the Closing Attorney! Too often he/she’s overlooked and doesn’t get his/her oar in the water till the dock is in sight. Great Listing and Selling Agents harness the Closing Attorney’s energy early on by providing him/her with the information needed to handle title issues and meet each party’s closing requirements.

3. The Agents must discern their client’s or customer’s situation completely. This means the Listing Agent asking a lot of questions at listing time to determine exactly what the seller’s readiness, willingness and ability to sell are. And the Selling Agent asking a lot of questions to determine the buyer’s true objectives and budget.

4. The Agents must use what they know about their respective client/customer to guide and lead the client/customer to make informed decisions. The Agents must never presume or assume that they can speak on behalf of their client/customer. Decisions are not the Agent’s to make; they are the buyer’s or seller’s. (If the writer had a nickel for every time she has heard, “MY buyer/seller will never agree to that!” she would be very wealthy and open a shelter for burned out real estate agents).

5. The Agents must be “nice”. This means courteous, professional, timely and truthful. No ranting emails; no angry phone calls; no mention of religious beliefs or family genealogy (seriously!)