Posts Tagged ‘Better Homes and Gardens Real Estate Metro Brokers’

Reasons to Invest in Commercial Real Estate

June 8, 2015

buy_commercial_real_estateThere are many reasons to invest in commercial real estate, especially in metro Atlanta and north Georgia. I’ve seen many savvy investors taking the steps to purchase a commercial property such as a retail store, shopping center or more. These types of opportunities won’t last long, so it’s time to get off the fence!

Here are some of my reasons that you should look at the commercial market today:

Income Potential

The best reason to invest in commercial over residential rentals is the earning potential. Commercial properties generally have an annual return off the purchase price between 6% and 12%, depending on the area, which is a much higher range than typically exists for single family home properties (1% to 4% at best).

Professional Relationships

Small business owners generally take pride in their businesses and want to protect their livelihood. Owners of commercial properties are usually not individuals, but LLCs, and operate the property as a business. As such, the landlord and tenant have more of a business-to-business customer relationship, which helps keep interactions professional and courteous.

Public Eye 

Retail tenants have a vested interest in maintaining their store and storefront, because if they don’t, it will affect their business. As a result, commercial tenants and property owner interests are aligned, which helps the owner maintain and improve the quality of the property, and ultimately, the value of their investment.

Limited Hours of Operation 

Businesses usually go home at night. In other words, you work when they work. Barring emergency calls at night for break-ins or fire alarms, you should be able to rest at night without having to worry about receiving a midnight call because a tenant wants repairs or has lost a key. For commercial properties it is also more likely you will have an alarm monitoring service so that if anything does happen at night, your alarm company will notify the proper authorities.

More Objective Price Evaluations 

It’s often easier to evaluate the property prices of commercial property because you can request the current owner’s income statement and determine what the price should be based on that. If the seller is using a knowledgeable broker, the asking price should be set at a price where an investor can earn the area’s prevailing cap rate for the commercial property type they are looking at (retail, office, industrial, etc.). Residential properties are often subject to more emotional pricing.

Net Leases

There are variations to net leases, but the general concept is that you as the property owner do not have to pay any expenses on the property (as would be the case with residential real estate). The lessee handles all property expenses directly, including real estate taxes. The only expense you’ll have to pay is your mortgage. Companies like Walgreens, CVS, and Starbucks typically sign these types of leases, as they want to maintain a look and feel in keeping with their brand, so they manage those costs, and you as an investor get to have one of the lowest maintenance income producers for your money. Fewer consumer protection laws govern commercial leases, unlike the dozens of state laws, such as security deposit limits and termination rules that cover residential real estate.

These are some of the best reasons that make investing in commercial real estate appealing. Do you have any additional items you’d like to add? Sound off below!

How to Spot a Bad Business Broker

February 16, 2015

detectiveWhen selecting a business broker to help sell your business, make sure to watch for the red flags in their business plan. These few tips can help you save time and money during the selling process.

The broker wants a significant or total fee paid up front:

Many brokers have begun taking upfront fees, but generally the total fee is a combination of an upfront fee and commission paid upon sale of the business. An unreliable broker meets with you, runs some quick numbers, tells you that you can get your price or even more for your business, and then asks for a check to get started. In many cases, business owners are so relieved that they’ve found a broker and elated that they’ll write a check on the spot, without checking any references. “They get to ‘take away’ your check when they leave and you may not see them again, if they can help it. (more…)

Working with a Relocation Management Company

February 2, 2015

blog 2At some point in your career, you’ll probably be requested by a corporate transferee to assist them either in a home purchase or home sale transaction. You might be wondering what that means to you. Corporate transferees are customers who have been directed by their employers to make a job transfer. For the most part, they wait until their human resources director tells them what steps they need to make and when, but sometimes the transferees jump the gun and makes decisions on their own that can affect how their employer helps them financially. What does this mean to you and to the customer?

You as the associate and service provider always want to protect the transferee’s benefits, so here are some rules and strategies to make sure you don’t make mistakes that jeopardize their benefits and your commission. (more…)

FHA Mortgage News for the New Year

January 12, 2015

fha_loan_limitsGreat news! FHA loan limits for the major counties in Georgia increased from $320,850 to $342,700 for all new FHA sales contracts written on or after Jan. 1, 2015. This gives homebuyers the opportunity to buy a home with a 3.5% down payment (all from a gift) and FHA has relaxed qualifying guidelines on homes $21,850 more expensive than last year.

The bad news is that the FHA Anti-Flipping Waiver expired on Dec. 31, 2014. Some folks might say, “What Anti-Flipping Waiver?” Many thought a seller had to have owned the home for 90+ days before selling it to a new buyer using FHA financing.

Well, you’re not totally right or wrong. Even though HUD introduced the Anti Flipping Waiver in February 2010 and extended it to December 2014, many FHA lenders and banks ignored the waiver guidelines and continued to require that the seller hold title to the home a minimum of 90 days before re-selling it to a buyer using FHA financing. Since HUD (FHA) only insures loans and FHA approved Lenders actually lend the money, FHA Lenders often have different guidelines than HUD’s guidelines for FHA Insurance purposes. (more…)

Contract in Review: Top 10 Contract Issues

January 5, 2015

contract_reviewIn addition to ready, willing and able buyers and sellers, the real estate professionals’ ability to collect a commission is dependent on how solidly the agreement is written. Whether you are the listing agent receiving the offer on behalf of a seller or the selling agent preparing the offer on behalf of an interested buyer, every agent involved in the transaction has an obligation to ensure the contract is well written. Many contracts are filled with loopholes and scenarios that could render the deal void if challenged. Below are the top ten issues that we see in Broker Support that could cause contract nightmares and possibly cause the contract to be voided by one party or the other. (more…)

What’s Ahead for Real Estate in 2015?

December 29, 2014

2015_real_estate_marketThis has been a great year for the Georgia real estate industry. Prices throughout metro Atlanta are up and Better Homes and Gardens Real Estate Metro Brokers has more top producers than ever before. In some areas, the median sales price has met and exceeded pre-recession levels. This was another rebuilding year, but there’s still a lot farther our market has to go to truly recover. (more…)

Holiday Card Time!

December 8, 2014

holiday_cardsThis is the best time of year to touch base with all of your past customers. This includes your client base that has relocated to another part of the United States. “Out of sight, out of mind” shouldn’t be your philosophy now. Often those previous clients who moved to Kansas, California, Texas or wherever may still need your assistance and should be on your holiday card radar.

There are lots of ways you can reach out to your customers across the country. If you keep in touch via newsletter, create a holiday theme and offer decorating advice or share a recipe. In your newsletter, let them know what’s happening in the real estate market currently and, oh by the way, if they are looking to make a lifestyle change or move again, you’re still their Realtor® and you can help them anywhere in the country as you work all markets nationwide.

(more…)

3 Reasons the Holiday Season Is A Great Time To Sell!

November 24, 2014

home_selling_holidaysAs the holiday season nears, many homeowners who are contemplating selling think the holiday season isn’t a good time to sell their house. Because of that misconception, many will wait until after the start of the New Year, or even until spring to put their house on the market.

Contrary to what many think, the holiday season is a great time to sell a house! Putting a house on the market over the holidays can result in a seller getting a higher price and a quicker sale.

How can that be you ask? Here are three great reasons:

  • Buyers will have fewer homes to consider because competing inventory will be at its lowest level over the holidays.
  • Although there are fewer buyers looking at homes over the holidays, those that do are serious and highly motivated.
  • Homes that are tastefully decorated for the holidays show well.

So if you’re thinking about selling and planned to wait until after the holidays, you should consider going ahead now. The first step is to consult a real estate professional who is a local expert in your area.

Happy Holidays… and Happy Selling!

How to Avoid the Grinch Stealing Your Closing!

November 10, 2014

mortgage_grinchThe holiday season is upon us and the temptations that come out this time of year make the home buying and mortgage process even more hectic and tricky than normal. A common misconception that homebuyers have is that the mortgage approval is complete when the loan officer gives them a pre-qualification letter or when they receive the telephone call that they have been approved in underwriting.

What most consumers don’t realize is that the mortgage approval process occurs in stages and continues to the day of closing. The changes they make to their income, asset, debt or credit profile can change an approval to a decline very quickly. (more…)

Finding Potential Commercial Leasing Clients

November 3, 2014

commercial_leasingMost experienced leasing brokers agree that establishing a commercial tenant population usually requires representing landlords for a period of time. When you have a lease listing, you attract tenants and some number will not have an interest in your listed space but allow you to assist them with finding what they do want. Prospecting for landlords can include small to mid-sized inline shopping center owners, office building owners, retail property owners or industrial property owners. You can locate an ownership list if you want to purchase leads or you can approach landlords directly and solicit a listing. (more…)

Rent It or Sell It?

October 27, 2014

rent_or_sellWhat should I do with this property? This is a pressing issue in today’s real estate environment in many circumstances. Owners and agents alike are posing this question every day.

The market has begun its journey toward recovery and home prices are rebounding. The recovery has made it possible for an increasing number of previously underwater sellers to become equity sellers again. While the recovery is in PROCESS, there are many agents and sellers that remain frustrated with the rate of PROGRESS. (more…)

What Would a Veteran Do?

September 22, 2014

veterans_usaa_navyfederalAs a proud USAA and Navy Federal preferred broker, Metro Brokers is expected to deliver a high level of service. Our agents are required to attend training classes to service these types of clients, and we preach giving the best service possible. But it occurred to me recently that maybe the best way to provide superior service is to think like a military veteran.

With that in mind, here are some examples on how to think and act like a veteran: (more…)

Texting and Driving a True Danger in Our Industry

September 15, 2014

texting_and_drivingI know full well the importance of communication as a real estate agent. If you aren’t the first one to respond to a lead, or you aren’t responding quickly enough to a client, you can end up losing out on valuable business or souring a relationship.

It also doesn’t help that we’re on the road so often. Many times, it feels like we spend more time in our cars – driving around to different listings – than we spend in the office.

But it’s important to remember that safety comes first. ALWAYS. (more…)

It’s Time for a Price Adjustment

September 8, 2014

home_pricingThe story is all too common. During your initial listing appointment, you agreed on a price with your sellers. You’ve worked tirelessly with that listing for several weeks (or months), had plenty of showings, put in the research, and you’ve found there’s only one problem: The price is too high. Your clients have already explained to you that they “need to get this amount out of the sale”, and you know that bringing up a price drop will probably cause some friction if not an outright “No!”

Before you start stressing out, remember that a price reduction in is in their best interest and you have a professional obligation to tell them what they need to do to get them home sold. With proper preparation and solid tactics, you’ll not only get the property priced to sell, but you’ll also gain lifelong clients that will truly appreciate you.

Here are 5 ways to properly handle a price drop:

  1. Set the stage: When you take the listing, tell the Seller that although you are comfortable with the price they have selected, the market constantly changes and it’s your job to monitor the market activity and let them know about any changes that affect the sale of their property. Explain that some changes could make it necessary for them to re-evaluate their pricing strategy.
  2. Stay in touch: Before you can even start suggesting a change in price, your clients need to be able to trust you and see you as a professional. The best way to accomplish this is by having regular contact with your clients, even when there’s nothing to actually report on the listing. I suggest calling them at least once a week to give them an update on their home. If you constantly keep them up-to-date with the latest developments, there’s a much better chance that they’ll understand the reasoning behind the needed price reduction. While they may be disappointed, they’ll know that you’ve been working hard and that this is the best option.
  3. Have an in-person meeting: The last thing you want to do is upset your clients, and there is a much higher probability of them being upset if you simply call, email or text them that they need to drop the price. Plan a get together at their home, a local coffee shop or your office. Face to face meetings are always more effective.
  4. Be prepared: Do your research. Be prepared to discuss the state of the market, recent transactions in the area, showings and feedback on their property. Properly presented, it should be clear why you are recommending a change in the pricing strategy.
  5. It’s a “price adjustment”, not a “price reduction”: A surefire way to upset your sellers is to bring a negative attitude and connotation to the pricing discussion. Instead, you should keep positive and upbeat about the situation, and concentrate on the fact that this will help them sell their home and move on to the next phase in their life. Also, using the word “adjustment” instead of “reduction” is a more neutral term.
  6. Listen and respond: Your clients will definitely have questions during the meeting, and if you aren’t listening to the true meaning behind each question, there’s a good chance you could end with an unhappy client and continue to have an overpriced listing. Listen carefully and be sure to respond to any objections you may hear, but don’t be defensive. Be understanding and mindful, and you’ll end up with happy clients.

What are your tips for price adjustments? Please comment below!

Top 5 Most Valuable Exhibits and Addendums

August 26, 2014

top5_exhibitsIn the process of writing offers, there are several exhibits and addendums that seem to be more widely used than others. The purpose of exhibits and addendums is to formalize the process of accommodating various common reoccurring situations during the negotiations process. When combined with the standard purchase and sales agreement, the exhibits and addendums give additional definition and requirements to the transaction.

At a quick glance, the following are the most commonly used exhibits and addendums in today’s market. (more…)


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