Are You Ready for The New Year?

25 Days Left Until 2017... Are You Ready?

340 days of the calendar year 2016 has passed, and unless you believe 2017 will bring you a Power Ball win… you need to stay focused on our goals.

The first step is to write down what you want to accomplish by January 1^st 2017…

   
Step 2:  As the Warden said to Cool Hand Luke “You got to get your mind right”…. http://www.youtube.com/watch?v=Y28pFJqDkkU&feature=fvwrel

Self-accountability is imperative for reaching short term year end goals…data base management systems and activities have been covered in other blogs http://icu-coaching.blogspot.com, but you must learn to hold yourself accountable to do the things which will help you to reach your goals.

Adopt a referral based mindset and “data mine” your Book of Business to discover who are the individuals most likely to help you reach your new goals…then start a system of contact and care to “train” them to begin to notice those around them who could use your professional services.  Remember, your objective is to become their resource for everything real estate related.

Consider the following flow for your initial contact:

First:  Get personal / build rapport


Second: Discuss their real estate needs (Discover a need … “find a problem…fix a problem”)


Third: Ask for referrals (Who do you know who is currently thinking of buying of selling real estate?); it is critical you ask for business.http://icu-coaching.blogspot.com/2012/06/are-you-asking-for-referrals-or-just.html

Step 3: Get a System… this is a very important step. So many agents we coach never had a system to manage their prospecting activities…not having a system to tell you when to contact, who to contact, the type of contact (written, electronic, voice to voice, or face to face) , and a system to track what your last activity with them consisted of…is an open invitation for your prospects to slip between the cracks…and slip away!

 Step 4: Contact every A and A+ contact in your B.o.B. every month. -Examples include: Items of Value, Postcards, market updates, newsletters, just- listed cards, just-sold cards and charitable notices. Always refer them to your website. Also, offer them free reports on how to increase the value of their home, how to build wealth investing in real estate, how to stage their home, etc. Become their “go-to” person for everything real estate related!  When considering “Items of Value” make sure it holds value to each individual …the same Item of Value sent to everyone in your B.o.B. will not be seen as “valuable” …know the individual so well that you know what they find valuable.

Step 5: Use hand written notes as the foundation to your prospecting system. -In this high technology world of e-mails and form letters, it is important to still maintain a personal touch . A simple way to do this is to send out a handful of handwritten notes each day. Almost every hand written note you send will be read...there is no bigger bang for the buck than a hand written note. Use them and watch your response rate soar!

Step 6: Develop an attitude of gratitude with your Book of Business…when you receive a referral go over-board thanking them… keep them updated on the disposition of the referral and when it closes thank them again!

When contacted regularly and enthusiastically your past clients and center of influence people will be some of your strongest sources of business. You will be able to consistently obtain quality referrals from these people in any type of market. Focus on providing great service to them, and the leads you receive in return will be the foundation of your business.


Hope everyone has a safe and Merry Christmas Holiday!

Eddie Brown ©2016

www.RealtorRescue.biz

Your Belief Boundaries

Last week we discussed feeling “stuck” in our lives and our careers. In my role as a coach and manager I often see how people quickly discover the level of performance those around them will tolerate… and then they gravitate to that level.  Imagine if your spouse would tolerate you going out for a beer every day after work with your buds and coming home late with a buzz on... then you would naturally gravitate to the fun and easy… maybe not really considering how it may be affecting your relationship long term.

The same is true in business. If your manager will allow you to miss sales meetings, slough off training/ coaching sessions, and close only a few transaction a year… then you too will gravitate to the easy... not fully realizing how it will negatively affect your career and your income.

Then as your performance at home and work decelerates, those around you will begin to assume this low level of performance is all you are capable of achieving and will eventually stop challenging you to do better. So in reality… you, and those around you, unconsciously reinforce low performance and it becomes a self-fulfilling prophecy of sorts.

Many times in our profession I hear the word “plateau” used to describe someone in the above described dimension…. 

How does Webster define plateau? 

 Pla-teau  (noun) 1. An area of relatively high ground

                               2. A state of little or no change following a period of activity or progress.

Look at the 1^st definition… when you are in a low production state I would not define it as “relatively high ground”… and for the 2^nd … some low production agents may have never seen a period of activity or progress… so use of the term plateau is often misused. The reality is...you are stuck in your own beliefs and the beliefs of those who surround you.

Consider it this way...If you believe, think, and feel something… it becomes who you are. We all form mental boundaries which limit our performance... and these boundaries control everything we do… and what we achieve is always consistent with our own inner belief systems.

Your performance cannot expand beyond the limits we unconsciously place on ourselves. Based on our own perceptions, and the perceptions others have of us, we mentally draw a boundary circle around us we fully believe we cannot pass through. We make hundreds of these unconscious decisions about ourselves, our lives, and our capabilities every day... and with each decision we silently strengthen our boundary circles.

The only way growth can occur is to push back the inner walls of your circle… and we usually can only do this in small incremental expansions of your belief paradigm. If you are willing to undergo the hard work and stress of changing your inner most personal beliefs new positive thoughts and better performance will fill the expanded space within your circle.

Most old-school motivational efforts fail because they focus on changing actions and performance without first changing the base cause of a poor belief system.

If you want to change your performance first you must change your beliefs… (More to come).

Next Blog Topic: Changing your inner beliefs systems

Eddie Brown ©2016

www.RealtorRescue.biz

Are You Being Tested?

No one goes through life untested....The answer to each "test" is walking away with something
learned and with a positive energy.

When we speak of positive energy think optimism, trust, enthusiasm, love, purpose, joy, passion, and the spirit to live, work, and perform at a higher level.

Our new Senior VP, Rod Eller,  has afforded me the opportunity to participate in a new style of coaching...one which works at a deeper level than production coaching can alone. It helps me as the coach, and you as the student, have a deeper understanding of your purpose, your why, and identifying your full potential in your career.

Knowing your purpose and why you think, feel, and respond the way you do to daily life events can assist you to break through barriers and remove the obstacles which can stagnate your success.

To overcome adversity in your life and work you must be willing to share contagious energy with those around you. To bring out the best in others you must first bring out the best in yourself. You have to find a way to push away from those "energy vampires" which threaten to sabotage your health, family, and success... and find the positive things which energize you and keep you motivated. 

Ask yourself this one question:
Is your life a success story... or one big never-ending soap opera?
Every problem... every crisis....holds a gift for you... only you can chose to see it as a curse... or a gift. This one choice over the course of weeks and months may determine if your life is a success story or the aforementioned continuous soap opera.

Think about it.... Everyone has challenges.... It's a part of life. Relationship problems, health problems, work problems... all kinds of problems. The first step to overcoming adversity  is to realize you are the captain of your ship... the driver of your bus... and if you can't take control and accept responsibility for your life and steer in the right direction you will never get where you want... or need... to go.

And....If you are not the driver, you will always be subject to someone else's travel plans.

Some people feel "stuck"... like they have no other choice... so they give up. I'm here to tell you that you do have a choice. You make a conscious decision each day when you get out of bed to have a good day or have a bad day... it's all about your attitude towards the challenges you will face over the next 24 hours. It is YOUR choice to make. You must take the wheel and choose to create the life you want to live. 

Don't let the world create you... YOU create your world!

Ask yourself these questions:
1. What do I want in my life? (including your health)
2. What do I want in my career?
3. What do I want in my relationships? 

The answers to these questions should be loaded with positive energy and will be the first step to becoming the driver of your Life, Health, Career, and Relationships.

Next weeks blog topic: Belief Boundaries

Eddie Brown
www.RealtorRescue.com

Is There a Better Way to Deliver Bad News? (Repost)

SO.... You Got Some Bad News.... Now What?

Real estate will always be full of ups and downs. There's the thrill of finding the perfect home for your client, followed by the news the sellers JUST accepted another offer.

Hopefully you and your client's lives have been filled with more good news than bad.

But what do we do when the uncomfortable time to deliver bad news arrives?

The news that the buyers loan was not approved? News the appraisal came in below contract price? The news how during the inspection, it was discovered the entire basement is full of mold and the foundation is bad, and both heat exchange units are cracked? The news the buyer is cancelling the contract the last day of their due diligence period…for NO SPECIFIC REASON?

Or what about this one…It’s 2 days before closing and you have to go to your relocating buyer to advise them the closing attorney just discovered an equity line on the property they are purchasing and the seller is now is a short sale position…lacking the funds to cover the deficiency…Is there any possible way to legislate damage control in the delivery on these types of messages?

The answer is yes:

But first go back to when you first met your client. Pre-education is paramount! Let your clients know beforehand they always need to have a “Plan-B” because “Stuff” happens… and when it hits the fan if they have a good Plan B it will not be as devastating.

As a former Marine we had a saying ...“adapt and improvise” … we always had a Plan B, C, and D for every mission for when Plan A fails…(notice I didn’t say “if” Plan A fails…there is going to be disaster from time to time…that is just life…so be prepared)

Next: The significance of the when and how of delivery:

When: As soon as possible! Delaying the delivery of bad news is never a good choice. Plus it adds the advantage of time…Time to initiate their Plan B, or in a worse case develop one.

How: Make it personal! The delivery of bad news is always better in person when possible. Don’t hide behind an email or text…if you can’t be face to face, then do it voice to voice… (But tell them you wanted to do this face to face).

Never hide the facts…Give them all the information you have and if they have further questions find the answers promptly. Then follow up and follow through with what you say you will do. Get It Done!

Always look for a silver lining…and always…ALWAYS come to the table with options for your client. Bring them solutions to their problems and you will become their hero.

My Grandma used to say “if you have to serve rotten potatoes… pass them the whole bowl of gravy…and it better be good gravy!”. Be upbeat… but be ready for some fall-out, (there will most certainly be emotions)…The most common first reaction is anger so be prepared to explain the options they have available...if you aren’t prepared with multiple solutions, then fear will set in…so do your homework.

NEVER throw the other side under the bus….don’t place blame… it will only fuel your clients’ emotions. Blame usually causes the client to want to step away from the pain… where solutions will help move the transaction forward.

And finally: No matter how disappointed your client is…you want them to leave this meeting feeling you have done everything you can do to improve a bad situation…and that you are on their side 100%!

We hope you found this information valuable…to learn more about one-to-one real estate production coaching visit www.RealtorRescue.com

Eddie Brown

How to Cope With a Sluggish or Slowing Market

Anyone who has been in Real Estate for any length of time knows how cyclical the market can sometimes be. Tax Time, Summer Vacations, Back to School, and Major Holidays can often put the brakes on even the hottest markets. Coupled with the “roller coaster” effect inconsistent prospecting creates, and you have the perfect set-up for a few bad business months… (Where you seem to always be scrambling for prospective buyers and sellers).

Step One: To lessen the side effects of the normal cycles of the real estate market stay consistent with your prospecting and networking with your database. 

• Only 20% of REALTORS have a system in place to manage their database … Only 5% use it consistently… 

• This 5% has an average yearly net income over $200,000. Lesson #1 learned… Get a System…Lesson #2 USE IT!

Realtor Rescue© Coaching implements a system appropriately named “THE FIVE”©. This is a simple to learn and utilize system of 5 different types of contact per day…  5 days each week. This equates to approximately 25 contacts per week of voice to voice, face to face, hand written notes, electronic communication, and breaking bread (lunch or coffee meetings).

For most agents this seems like a daunting number… I often get this response… “I have to contact 25 people each week??? Really Eddie…are you on drugs?” … (or some just stare at me as if I had 3 heads)… But I promise you…it really is much simpler than it seems.

THE FIVE Daily Prospecting Scenario: 

You call a past client and invite them to Starbucks for coffee… (That's 1 call, 1 coffee)… after the Starbucks visit you send them a hand written note via snail mail thanking them for meeting with you and again letting them know you value their relationship and referrals… (there goes your 3^rd contact)   Are you starting to catch on?

On the way home while at the grocery store picking up your dinner you see a neighbor and have a quick discussion about last Saturdays swim meet at the pool and when parting you ask them if they know anyone who is considering buying or selling ….(this was your face-to face and contact #4.)

So now all that is remaining is your electronic communique… Will any of you send any personal emails, or go onto social media after you have dinner? Yeah, I thought so….(BINGO there’s your “FIVE” for the day… Easy Peezy!)    

Step Two: Recruit an accountability partner to hold you to your promise to yourself so you can reach your goal of 5 contacts, 5 days each week. Also have a set of written goals for your transaction numbers and income for the next 3-6 months. Consistency is the key…it's your “easy button”… Your “partner” can be a spouse or significant other or another agent where you can hold each other accountable to your goals.

Step Three: “Aim Small, Miss Small”  Don’t aim at the whole target…pick a spot on the target and focus on it intensely… so even if you miss the small spot you were focused on, you will still be on target.

Example…. Don’t focus on a goal of $100,000 in income… nor the 30 closed transactions needed to generate $100,000 in income… don’t even consider this equates to 2.5 monthly closed transactions … Do calculate the number of contacts you need per day to generate your income goal and focus on completing them each day. Even if you miss a few contact goals here and there… you most likely will still be on target at year end.

When the market slows down… it gives you more time to “speed-up” your marketing efforts. When everyone else is complaining about the lack of business…you will be shifting into a higher gear and waving to them in the rear view mirror… yelling…. I STAY ALIVE WITH THE FIVE!!!!!

For more information on Realtor Rescue Coaching and “THE FIVE” contact  coach@RealtorRescue.biz

Eddie Brown © June 2016

ARE YOU THE ONE?

You have to take control your own life… Your own destiny…. Your family, your friends and your business needs you.

Every experience you’ve had up to this point has prepared you for this very moment in your life… all that is left for you to do is to step up… Your biological timeclock is ticking… you no longer have time left to push the snooze button… IT IS TIME TO WAKE UP!

There is a  world of new experience waiting for you…it is time to rise up to this grand adventure…this challenge you were born to experience… the challenge you need to experience!

YOU MUST BE READY… Because no one is coming … The Government is not coming to save you. Your parents cannot rescue you…Your friends can’t carry you… NO ONE IS COMING… You are already here and you are READY! No one owes you anything…  You are not entitled.

BECAUSE YOU ARE THE ONE!

You are exactly where you placed yourself… Trust your gut feelings… No one knows your dreams better than you. Stop pretending and tell the truth… to yourself and to others. Don’t fear being imperfect because perfect is never going to happen.

It’s not the beginning… nor the end… it’s the middle… and the dash between when you are born and when you die is the journey which really matters. Look inside…where is your journey leading you... what has it made you? We are here to learn… to evolve… You must build a positive relationship within your own mind to be able to create your new reality… create new thoughts… and significant changes. Dreams have to be greater than you are now. You don’t always get to choose your dreams… sometimes they choose you… just never give up on them.

But before a break-through can occur… there has to be a break-down. It’s in those moments of darkness… when you feel lost… and not sure where you are… you wonder if you will ever see the light again… ever feel the sun on your face again. These are the very moments when you must believe in YOU…You must have faith. Faith will keep you moving… without it… you stop moving… you stop living. When faith is lost, you give up… and when you give up… a part of you will die.

Listen to your dreams and you will break the chains of disbelief which hold you down.

It takes true courage to be who you really are… don’t be afraid to be different… To show the world who you really are takes courage. Real courage provides life, adrenaline, and motivation … If you have courage …YOU ARE READY!  

 

You have everything you need right now to fulfill your dreams… You are ready and the time is NOW!  

BECAUSE YOU ARE THE ONE!

Eddie Brown

RealtorRescue.biz  ©2016

Are you in survival mode? The Sequence of Success...

4 Phases of Your Real Estate Career

• Survival
• Stability
• Success
• Significance

Do you sometimes feel like you are hung up in “survival mode”?  Most agents early in their real estate careers are in fact stuck in survival mode.

Here are a few tips for breaking out of survival and moving forward and upward in your career.

Tip #1.

To move into stability you must have a written plan...one which provides a road map of where you want to go and how you get there. You need systems to manage a strong data base of relationships... Which is where you eventually want to obtain 80+% of your business.

The typical agent with less than 2 years in the business makes less than $20,000...while on the other hand agents with 8 or more years experience generally make greater than $65,000. This proves how referrals are the "learning curve" of success in real estate...

But early on you will need to go "old school" ... by doing weekly open houses, take every lead call floor duty opportunity you can, search daily for expired and withdrawn listings, work For Sale By Owners, even go as far as to ask the top producers in your office to remember you when they are too busy to assist a lead. As you fill your pipeline, and your Book of Business, the personal referrals will start to roll in and you will do less and less of the old school prospecting... making room for the next generation of new associates in the office.

Tip #2.

The road to success is full of potholes and with the right guidance from your written plan (road map) you can avoid most of them. Seek help from a mentor, accountability partner, or a professional business coach who can assist you with business decisions and hold you accountable.

82% of agents don't stay in touch with their database on a consistent basis... and when they do... the #1 form of contact is a recipe card. You must provide value in the arena  of your profession... do you want to be referred buyers and sellers or catering events? The info you provide will guide your databases of your professionalism....Perception becomes reality... Do you want to be tagged as a REALTOR or a Sous Chef?   

Tip #3.

To obtain significance in any career you have to be willing to work harder and smarter than your competition. Success comes dressed in overalls and looks a whole lot like work! Almost all top producers utilize 4 main productive habits:

1. Daily Promotion... without it, something terrible happens...NOTHING! 
2. Consistent contact with database using contact management systems.
3. Constantly form new relationships.
4. Always look for opportune times to ask for referrals.

We all tend to drift away from good habits like healthy eating, working out and daily prospecting. Always check your self accountability gauge to make sure you are on track to reach your goals... Set short term 10 day goals to stay on course... Life is hard by the yard, but a cinch by the inch.

STAY THIRSTY!

Eddie Brown

www.RealtorRescue.biz

For more information on Realtor Rescue and how it can help your business call Eddie at 919-785-4201

Do Buyer Agents have a duty to verify square footage information?

QUESTION: Several years ago, I represented a buyer who purchased a condominium. The unit had been listed in the MLS and the listing agent reported the unit as having 900 square feet of living area. My client purchased the property and lived there for several years. He recently asked me to list the unit for sale. As part of my regular practice whenever I list property, I measured the unit and discovered that it only has 820 square feet of living area. I am concerned that my client will be upset with me over my failure to verify the square footage when he purchased the property. Do buyer agents have a duty to verify reported square footage in every transaction?


ANSWER:  We have written previously about the responsibilities of listing agents to provide accurate information if they choose to report the square footage of their listings in their advertising. But buyer agents have responsibilities as well.


The Real Estate Commission has published Residential Square Footage Guidelines which can be viewed on the Commission's website under the "Publications" tab. On page 6 of that publication, the Commission writes as follows: "Generally speaking, an agent working with a buyer (either as a buyer’s agent or as a seller’s agent) may rely on the listing agent’s square footage representations except in those unusual instances when there is an error in the reported square footage that should be obvious to a reasonably prudent agent. For example, a buyer’s agent would not be expected to notice that a house advertised as containing 2200 square feet of living area in fact contained only 2000 square feet. On the other hand, that same agent, under most circumstances, would be expected to realize that a house described as containing 3200 square feet really contained only 2300 square feet of living area. If there is such a “red flag” regarding the reported square footage, the agent working with the buyer should promptly point out the suspected error to the buyer and the listing agent. The listing agent should then verify the square footage and correct any error in the information reported."


Based on the Commission's own guidance, your failure to notice an 80 square foot discrepancy in a condo listed as having 900 square feet does not mean that you would definitely receive discipline by the Commission. However, that does not mean that your buyer client might not file a lawsuit in an attempt to hold you and your firm responsible for damages. The best suggestion we can give to buyer agents: always think carefully about the square footage being reported. When in doubt, tell your client... and ask for verification.

NC REALTORS® provides articles on legal topics as a member service.  They are general statements of applicable legal and ethical principles for member education only.  They do not constitute legal advice.  The services of a private attorney should be sought for legal advice.

© Copyright  2016. North Carolina Association of REALTORS®, Inc.  This article is intended solely for the benefit of NC REALTORS® members, who may reproduce and distribute it to other NC REALTORS® members and their clients, provided it is reproduced in its entirety without any change to its format or content, including  disclaimer and copyright notice, and provided that any such reproduction is not intended for monetary gain.  Any unauthorized reproduction, use or distribution is prohibited.

Bill Gifford, Martin & Gifford, PLLC

 

Can a Buyer's agent be present when you present their client's offer to the Seller?

Does a buyer's agent have the right to participate in the presentation of an offer?

QUESTION:  I have a property listed in the local MLS. A buyer's agent arranged a showing last week. She just called to tell me that her clients have signed an offer to purchase the property. The buyer's agent wants to be present when that offer is presented to my seller-client. When I told her to just send me the offer, and that I would present it to my client, she told me that she had the right to participate in the presentation. Is she right about that?


ANSWER:  Since the property in question was listed in the MLS, the answer is yes. The right of a cooperating agent to participate in the presentation of any offer he or she secures is governed by Section 2.3 of the Model MLS Rules and Regulations.


Keep in mind that MLSs owned or controlled by a REALTOR® association must conform their governing documents to mandatory MLS policies established by NAR's Board of Directors. NAR publishes a handbook to guide member associations in that process. The handbook includes model rules and regulations some of which are considered mandatory. Rule 2.3 is one such mandatory rule. It states: "The cooperating broker (subagent or buyer agent) or his representative has the right to participate in the presentation to the seller or lessor of any offer he secures to purchase or lease. He does not have the right to be present at any discussion or evaluation of that offer by the seller or lessor and the listing broker."


There is an exception in the model rule. Your seller can give you written instructions that the cooperating broker not be present when the offer secured by that agent is presented. If that happens, you can and should abide by those instructions. However, the cooperating broker has the right to a copy of the seller's written instructions.


A corollary to Rule 2.3 is another mandatory rule, Rule 2.4. It gives listing brokers the right to participate in the presentation of any counter-offer made by a seller or lessor. The listing agent does not have the right to be present for any discussion or evaluation of that counter-offer by the purchaser or lessee, except when the cooperating broker is a subagent.

NCAR provides articles on legal topics as a member service.  They are general statements of applicable legal and ethical principles for member education only.  They do not constitute legal advice.  The services of a private attorney should be sought for legal advice.


© Copyright  2016. North Carolina Association of REALTORS®, Inc.  This article is intended solely for the benefit of NCAR members, who may reproduce and distribute it to other NCAR members and their clients, provided it is reproduced in its entirety without any change to its format or content, including  disclaimer and copyright notice, and provided that any such reproduction is not intended for monetary gain.  Any unauthorized reproduction, use or distribution is prohibited. 
 

When does a back-up contract become binding?

QUESTION: We represent a seller who is under contract to sell her home. A buyer agent representing another buyer recently delivered an Offer to Purchase and Contract with a Back-Up Contract Addendum attached, along with checks for the Due Diligence Fee and Initial Earnest Money Deposit.  Our firm is named as the Escrow Agent.  The seller has accepted the second buyer’s offer and we communicated that to their agent.



I have a couple of questions. First, is the Back-Up Contract a binding contract now or does it become binding only if and when the contract between the seller and the first buyer is terminated?  Two, what do we do with the DDF and Initial EMD checks?



ANSWER: To answer your first question, the Back-Up Contract became binding when it had been signed by both parties and the seller’s acceptance was communicated to the buyer agent.  The parties’ respective obligations to complete the transaction are indeed contingent on the primary contract being terminated, but the existence of that contingency doesn’t mean that the Back-Up Contract isn’t a binding contract now.



To answer your second question, since the Back-Up Contract has become binding, the EMD should be deposited in your firm’s trust account no later than 3 days following the Effective Date of the Contract. On the other hand, the Real Estate Commission’s Rule on handling trust money (58A.0116(b)(4)) requires you to either deliver the Due Diligence Fee to the seller or return it to the buyer, according to the instructions of the buyer, no later than three business days after the Effective Date of the Contract.  Thus, you should contact the buyer agent for the “back-up” buyer and request instructions on what to do with the DDF check.



Note that paragraph 9 of the Back-Up Contract Addendum provides that the DDF becomes due and payable within five days after the seller has notified the buyer under the Back-Up Contract that the Back-Up Contract has become primary.  It’s the Buyer’s choice, but presumably, he or she would prefer to have the DDF delivered to the Seller only if and when the Back-Up Contract becomes primary. If that’s the case, you need to return the DDF to the buyer agent right away in order to be in compliance with the Real Estate Commission’s Rule.



NCAR provides articles on legal topics as a member service.  They are general statements of applicable legal and ethical principles for member education only.  They do not constitute legal advice.  The services of a private attorney should be sought for legal advice.


© Copyright  2015. North Carolina Association of REALTORS®, Inc.  This article is intended solely for the benefit of NCAR members, who may reproduce and distribute it to other NCAR members and their clients, provided it is reproduced in its entirety without any change to its format or content, including  disclaimer and copyright notice, and provided that any such reproduction is not intended for monetary gain.  Any unauthorized reproduction, use or distribution is prohibited.

Can a counteroffer be accepted without a client’s signature?

QUESTION: Yesterday, I sent a signed standard form Offer to Purchase and Contract to a listing agent through email. The listing agent emailed me back with a counteroffer, but his email did not have a contract attached with the sellers’ signatures on it. My buyers liked the counteroffer, so I emailed the listing agent back, without attaching a new contract, and told him that my clients had accepted the sellers’ counteroffer.


The listing agent contacted me today and said that the sellers have received another offer and that the sellers will be re-opening the listing to accept the highest and best offer. I explained to him that he could not do that since we were under contract, but he claims that we are not. My clients are very upset. Is the listing agent correct?


ANSWER: As a general rule, a real estate agent in North Carolina does not have the power to bind his client to a contract to convey real property unless the agent has special authority. An agent would have “special authority” in circumstances where a client gave the agent actual authority to act, such as through a power of attorney.


In your example, if your only authority to act for your clients was established through the standard form Buyer Agency Agreement, then you did not have actual authority to bind your clients to a contract. Likewise, if the listing agent’s authority was limited to the powers outlined in the standard form Exclusive Right to Sell Listing Agreement, then he did not have the right to bind his clients to the counteroffer that he made on his clients’ behalf. This means that absent any other facts, your buyers did not have a valid, binding contract for the sellers’ property.


This answer, however, is not the end of the road. The answers to questions like yours are very fact specific, and in some cases it might be possible that there is a contract if you and the listing agent were acting with apparent authority. Apparent authority can occur if your client informs the other party that you have the authority to act for them. So, before you take any action, make sure your clients consult with an attorney to advise them after hearing all the facts. And, in the future be sure to inform your clients that there is no contract until all the parties to the contract have agreed to all the contractual terms and signed the contract.

NCAR provides articles on legal topics as a member service.  They are general statements of applicable legal and ethical principles for member education only.  They do not constitute legal advice.  The services of a private attorney should be sought for legal advice.
© Copyright  2016. North Carolina Association of REALTORS®, Inc.  This article is intended solely for the benefit of NCAR members, who may reproduce and distribute it to other NCAR members and their clients, provided it is reproduced in its entirety without any change to its format or content, including  disclaimer and copyright notice, and provided that any such reproduction is not intended for monetary gain.  Any unauthorized reproduction, use or distribution is prohibited. 

Are You Working With A Younger Generation?

Fact: The average age of a REALTOR is 57 Years Old.

Fact: The average age of a first time Home Buyer is 33 Years Old.

(National Association of REALTORS 2015)

 Working with clients who may be 20-25 years younger than you has its upsides and its downsides, and sooner than later you will find yourself having home buying and/or selling discussions with a generation you may be unfamiliar with.

Here are some helpful tips on how to work with a client who may be a quarter century younger.

 Don’t Lecture…Do Listen.

Even though your clients may look and act like your children…they aren’t your kids… They aren’t kids at all… and you can’t treat them as such. Don’t try to talk to them like you do your children…if you do you will quickly lose them as clients.

Find out how they want to be communicated with. The younger generation uses text and social media as their main source of communication. Communicate on their level…even when it may be uncomfortable for you.

Listen to their needs… find a problem and help them fix it. Show them you care and be aware when they perceive… they believe… for them perception becomes reality… so if they think it is important… it also has to be important to you.

Don’t Patronize.  

Most of the younger generation are turned off by any form of condescension. Instead offer encouragement. No matter how confident they may seem, most first time home buyers are riddled with insecurities and fears. They crave and appreciate praise… so be generous with your compliments and support.

 Don’t Pretend You Fit In.

Think of yourself as a tourist in the land of the young. Their outlook and perspective on life is much different than a 57 year old. Learn and understand their culture and it will help you to better serve them.

Share Your Knowledge.

Baby Boomers have lived and experienced far more than someone 25-30 years younger… and with age comes knowledge.

EXAMPLE:  We know not to drink a 12 pack of beer when we have to go to work the next morning at 8am… Or how after 2 weeks off from the gym it’s not smart to try and do a heavy full body workout and then run 5 miles… OUCH!

Once you have hit 57, you should pretty much know what works…and what doesn’t! Young people don’t and can’t know everything yet…but you can’t lecture them on it. Instead, talk to them explaining how real estate works…. Sharing your perspective in a positive way. Many have a bad taste for real estate because of what the latest decline did to their parents. Show them the big picture and help them to remain calm even when the storm is howling around them. You have to become the YODI to the young Luke Skywalker.  “Try Not!  Do or Not Do, There is No Try”

Old People Got Skills.

Hopefully by your mid 50’s you have honed your skills to a razor sharp edge. You have been there and done that… and you have t-shirts tattered and torn with battle scars and age. You are the expert and you know how to negotiate an offer… You have excellent communication skills and know the value of a face to face meeting to get the best deal for your client. You’ve been told NO a thousand times, and have learned how sometimes a NO can mean “MAYBE”… and how sometimes "giving" a little can gain you a lot in return.

Even though we may look worn out to Millennials and Gen-X’ers… we still got plenty to offer. The young people of today will be our leaders of tomorrow… and maybe some of the knowledge we pass on will help them be more successful in life and business.  Old is a state of mind… Age is a state of experience and knowledge! 
Use it or you just might lose it!

Eddie Brown ©2016

ICU-Coaching.com

Do I Have To Report Criminal Charges To The Real Estate Commission?

QUESTION: An agent in my firm has just been charged with driving while impaired.  Don’t I as the firm’s broker-in-charge have the duty to report the charge against him to the Real Estate Commission?

ANSWER: Real Estate Commission Rule 58A.0113 requires that “[a]ny broker who is convicted of any felony or misdemeanor…shall file with the Commission a written report of such conviction or action within 60 days of the final judgment, order, or disposition in the case.”


Since your agent has only been charged with the misdemeanor of driving while impaired, there is no obligation to report anything to the Commission at this time.  However, if he ultimately is convicted of DWI, he would be required to report the conviction to the Commission within 60 days of the date of the conviction.  The conviction can be reported online on the Commission’s website.


In any event, you are not required as the agent’s BIC to report the conviction; the reporting obligation lies with the agent.  Of course, you don’t want him to get in trouble with the Real Estate Commission. both for his sake and the sake of the firm.  Thus, you should make sure your agent is aware of the reporting requirement because he can be disciplined for failing to report the conviction, even though the conviction itself may not result in disciplinary action.








NCAR provides articles on legal topics as a member service.  They are general statements of applicable legal and ethical principles for member education only.  They do not constitute legal advice.  The services of a private attorney should be sought for legal advice.
© Copyright  2016. North Carolina Association of REALTORS®, Inc.  This article is intended solely for the benefit of NCAR members, who may reproduce and distribute it to other NCAR members and their clients, provided it is reproduced in its entirety without any change to its format or content, including  disclaimer and copyright notice, and provided that any such reproduction is not intended for monetary gain.  Any unauthorized reproduction, use or distribution is prohibited. 

Latest Developments On The Use Of Drones

QUESTION:  I received a drone as a Christmas present. Am I permitted to use it to photograph properties I am listing for sale? If not, are there any new regulations governing the use of my drone for recreational purposes?

ANSWER:  We wrote a Q & A on the subject of drones less than three months ago. You can access that article here. However, drones continue to be in the news and there is one new development you should be aware of.


One thing which has not changed is the general rule: the commercial use of drones, including for real estate marketing, is prohibited by the Federal Aviation Administration ("FAA") unless the person or entity operating the drone has secured what is known as a "Section 333 waiver". The waiver will allow you to operate the drone in what are known as "low-risk, controlled environments". Operating without a waiver will subject you to the risk of substantial fines. You can find the application procedure described on the FAA's website.


One thing which has changed is the adoption of new rules requiring the registration of most drones in a national database. The FAA announced these new registration rules on December 14, 2015. Under these rules, owners of drones weighing between half a pound and 55 pounds are required to submit their names, home addresses and email addresses to the FAA. Registration is free if completed before midnight on January 20, 2016. After that, the fee is $5 for a three-year certificate of registration. Anyone who owned a drone before December 21, 2015 must register that drone by February 19, 2016. Anyone obtaining a drone after December 21 must register it before their first flight. Once registered, users must put their registration number on their machine, and have their registration card with them whenever they fly a drone. Failure to comply with the registration rules can result in criminal penalties, imprisonment and fines of up to $27,500.


The purpose of the registration process is to make the skies safer. While there no current requirement for drone operators to undergo any flight education course, the drone registration process does obligate the drone owner to check a box acknowledging that he or she has read the FAA's basic principles of flight safety.


Registration of recreational drones can be completed online. Currently, drones used for commercial purposes can only be registered by paper. However, online registration of drones used for commercial purposes is scheduled to open by March 31, 2016.


Michael Huerta, the Administrator of the FAA, recently confirmed that the FAA is continuing to work on rules governing the commercial use of drones. The National Association of REALTORS® does not expect those rules to be issued before August 2016.


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NCAR provides articles on legal topics as a member service.  They are general statements of applicable legal and ethical principles for member education only.  They do not constitute legal advice.  The services of a private attorney should be sought for legal advice.


© Copyright  2016. North Carolina Association of REALTORS®, Inc.  This article is intended solely for the benefit of NCAR members, who may reproduce and distribute it to other NCAR members and their clients, provided it is reproduced in its entirety without any change to its format or content, including  disclaimer and copyright notice, and provided that any such reproduction is not intended for monetary gain.  Any unauthorized reproduction, use or distribution is prohibited.