RJMesenbourg - Real Estate Broker

The Importance of RESPA

2011-11-17T15:55:00.000-05:00

I attended a continuing education class today on RESPA, the Real Estate Settlement Procedures Act. Simply stated, RESPA ensures that consumers are given timely information about the cost of borrowing money. Besides requiring that consumers receive disclosures at various times in the transaction, RESPA also outlaws kickbacks between Settlement Service Providers.

RESPA is a HUD consumer protection statute designed to help homebuyers be better shoppers in the home buying process. It is enforced by HUD, and as July, 2011, is administered and enforced by the Consumer Financial Protection Bureau (CFPB). This agency also provides information and helps you explore options if you are having trouble paying your existing mortgage.

After class, I jumped on HUD's web site. It's a great resource for consumers! While your mortgage broker can help you disseminate the information and numbers on your HUD-1 Settlement sheet, it is worthwhile to log on early in the process.

The HUD web site is also a great resource for agents and brokers, so we can be better advocates on our client's behalf. If you are a broker or agent, it's not a bad idea to do some research and be sure you understand the difference between a legal referral fee and an illegal kickback! Section 8 of RESPA prohibits anyone from giving or accepting a fee, kickback or anything of value in exchange for referrals of settlement service business involving a federally related mortgage loan. In addition, RESPA prohibits fee splitting and receiving unearned fees for services not actually performed.

Though RESPA is not one of the most exciting things to blog about, I feel it is important that both consumers and real estate professionals understand the facts and details about RESPA. And while I hope it never happens to you, if you feel a settlement service provider has violated RESPA in an area in which the Department has enforcement authority, you may file a complaint, or contact the CFPB’s Consumer Response team at 855-411-2372 (855-729-2372 TTY/TDD). If you are a settlement service provider with questions about RESPA, you can email the CFPB at CFPB_RESPAInquiries@cfpb.gov.

As always, I look forward to hearing your additional thoughts.

Be well,
Rhonda

Functional Obsolesence - what is it and can I do anything about it?

2011-10-13T13:16:00.004-04:00

Functional Obsolescence is defined as "loss of value from all causes within the property except those due to physical deterioration". Huh?!

In understandable terms, Functional Obsolescence is a defect in a property that affects the property's utility. For example, there is only bathroom is located on the second floor of the house. Or perhaps the house has no formal dining room or if it does have one, it's far removed from the kitchen.

Functional Obsolescence can be either curable or incurable. It is considered curable if the amount of money invested to remedy the issue increases the market value of the property by at least that much. On the other side, it is considered incurable if the cost to remedy the issue is greater than the added value the remedy will bring.

So, what does this mean for buyers and sellers?

If you are a buyer, be aware of shortfalls in the dwelling's utility and factor in the associated costs to fix those shortfalls when making your offer. Your real estate agent or broker can connect you with the right contractors in the area in order to get an idea as to what it might cost you to address the issues, and can then help determine if your return on investment will be worth it.

If you are a seller, you need to be aware first, of the objections that may arise from potential buyers. Also, keep in mind, that you may need to lower your expectations on market price to take into account the costs that potential buyers will face in order to address the issues and alter the property to better suit their needs.

Look forward to hearing your additional thoughts.

Be well,
Rhonda

Splash on the Color!

2011-10-03T10:39:00.000-04:00

You are getting ready to paint the interior of our home this winter. Hours have been spent hours pining over colors, trying to figure out the perfect palette.

Now, let's throw a little twist in the scenario and say, you are putting your home on the market. Should you stick with white? While white might be safe as to not offend anyone. White absolutely has its place in the world of paint colors, and nowadays there are endless choices of "white". However, instead of playing it too safe, consider the beautiful world of neutrals. Adding a touch of richness to the walls can make a big difference, and uplift a room's energy.

On a personal note, a couple of years ago, when we put our home on the market, I looked around at our walls. While the main living area was a beautiful khaki color, we had a brick red dining room, dark moss green bathroom and a burgundy office. And that was just the first floor! I loved the feeling each of the colors invoked, to me it made the house warm and inviting. After giving it serious thought about whether to tone down some of the rooms, we decided to keep the colors we loved. Through all the feedback we received by potential buyers and agents, only one person mentioned the wall colors, and it was the actually the agent, not the buyer. When showing properties, I always remind clients that it's only paint and can be easily changed!

So let's get back to the fun part, and choose some colors for those walls! When choosing colors, the big question is "How do you want the room to feel?" Warm and cozy? Cool and airy? "Downtown Chic" or "Provençal Farmhouse" Do you want to feel like you are sitting the beach? In a meadow? There is an abundance of web sites, books and online tools to help you choose. Check out Sherwin Williams color visualizer where you can upload photos of your rooms play with various color schemes. Also, check out HGTV's Color Guide full of painting tips, tricks and ideas.

What's your favorite color? Would love to hear your additional thoughts.

Best,
Rhonda

Real Estate Revival

2011-09-29T20:45:00.000-04:00

It's been a very long while since I last posted and there have been some changes along the way. In spring 2010, my husband and I moved to Charlestown, Rhode Island, one of our favorite places in the whole wide world. I also made a professional change and stepped out of real estate for a brief period as my full time endeavor. Well, I'm happy to say I'm back!

I'm now back in the real estate saddle full time, working with Properties Unlimited, LLC in Charlestown, Rhode Island. Great company, great people!

Coastal properties have so much to offer. Every house is unique, and has character. Big, small, old and new live harmoniously together side by side, giving character to the streets and shoreline landscape. The sights, smell and sounds of the ocean are invigorating and comforting.

Whether it's your primary residence or you secret hideaway, life is truly wonderful near the beach. I look forward to sharing thoughts and ideas with you and hope you will share your insights with me as well. See you again soon!

Be well,
Rhonda

Cold Calls - Back to Basics

2010-03-24T12:32:00.002-04:00

I've been seeing a few articles pop up all of a sudden on how to improve your cold calling skills. For some reason the combination of those two words are enough to send rampant chills up the spine of the strongest of men and women! And in this Age of Technology, seems like there a multitude of ways to reach out without going near the phone. But are they as effective? I personally don't know the answer to that question by way of statistical facts, however I can say in my own humble opinion that I feel picking up the phone and talking with someone is the best way to make a connection.

The only thing that stands in your way of cold calling like a pro is fear of rejection. That's the bottom line. I've received some good advice that has helped me tremendously and I'd like to pass it along in the hopes it will be helpful to you as well:

1. Relax! Take a deep breath and exhale. If you sound relaxed on the phone, the person you are calling will be relaxed as well. Get into the mind set that you are calling a friend to chat. (On the contrary, if you sound nervous or even worse desperate, they are going to pick up on that and feed off of that emotion.

2. Don't call someone to sell something, call to share information. Your goal is to peak some interest in your product or service.

3. Remember, this call is just the beginning. Set an appointment, send additional information and set a date to follow up.

4. Most importantly, not everyone will be interested in what you have to offer or perhaps the timing is off. You can always try again at a later time. Sometimes people won't even give you the chance to speak, they'll simply hang up. In either case, move on physically and emotionally. Don't dwell on it. Stay focused and move on to your next call.

Like everything else, mastering cold calls takes practice. If at first you don't succeed, always try, try again!

Don't hesitate to send me your additional thoughts.

Best,
Rhonda

Patience is a virtue, really!

2010-01-26T08:30:00.001-05:00

There are many tools in the real estate professional's arsenal. Some are tangible objects, others are intangible traits. Both should be readily available at all times, though many times the latter are actually more important.

If you happen to show up without your measuring device you could always count ceiling tiles or if your client just so happens to have a foot that is exactly a "foot" long as I once did you can make due just fine!

But just try and show up and forget to utilize the shining characteristic of patience and rest assured you may be on your way to sabotaging the transaction or even worse, the relationship with your client.

The market at the moment is a stressful place to say the least. Transaction volume is down and many brokers and agents are struggling to stay afloat, just like everyone else. Especially in these times it's more important than ever to keep your stress and patience in check. By doing so, you will be able to stay focused to the task at hand and will be more likely to see success. If you are stressed out and nervous, your clients will pick up on the tension and will start to feel nervous themselves.

Not sure how to handle your stress? Check out Realtor Magazines' post "5 Ways to Handle Stress" by John D. Mayfield. John offers great insight and advice.

At the end of the day, find something to do that takes your mind off of business for a while and allows you to decompress. Whether it's a workout, some time watching your favorite television series or my personal favorite, knitting taking a little bit of "You" time will go long long way.

Don't hesitate to send me your additional thoughts.

Be well,
Rhonda

Savings Savvy - just a few tips and tricks

2010-01-22T08:14:00.000-05:00

Running a real estate business or any business for that matter gets pricey. I'm always looking for new ways to cut back on my monthly expenses and keep them in line. Here a couple of tips and tricks I've learned and I hope you'll add your thoughts to the list:

Breakfast appointments: Early morning breakfast appointments is a great use of time in my opinion. It makes sure I am up and out early in the morning and I can be back at the office by prime time to jump into my to-do pile. Instead of eating breakfast at the restaurant, I'll have something at home before I go. If you still feel like you want to partake in the breakfast fare along with coffee, grab a muffin or something small that doesn't impair your wallet too badly.

Open Source Software: Check out OpenOffice3 and like software. There are some fantastic offerings out there. One of my favorite resources is http://www.techsupportalert.com/ - Gizmo Richard lists and rates many freeware and shareware packages.

Utilize your local library: It's easy to get carried away buying business books. Some books you'll read once and never touch again while others you'll refer to on a constant basis. Why not borrow them from the library first and then decide if it's worth the purchase?

Energy savings: Be sure to check out companies like Viridian to see how they can save you money on your electric bill. There's usually no cost to sign up - just your time to fill out the paperwork. Go to http://www.viridian.com/ for more information.

If you own your building, take it one step further and check out retrofit programs such as one offered by Efficient Lighting and Maintenance. They can "retrofit" your existing equipment and lights and make them as energy-efficient as they can be without sacrificing the existing lighting levels of your business allowing you to have the newest, most energy-efficient technology available today, without the costly need for a major renovation, and in most cases with little to no out-of-pocket expense. Check them out online at www.el-m.net/

Communication Savings: Check out Covoda! They offer the delivery and management of integrated voice and data telecommunication services, providing you with a cost effective option to handle your incoming and outgoing calls. Their services incorporate many additional features with the additional fees and long distant rates at a cost savings of up to 50% off the competition. For more information, visit www.covoda.com or call Glenn at 203-672-0260.

Have more tips and tricks to add? Send me your thoughts!

Be well,

Rhonda

Just say "No!"

2010-01-19T08:30:00.004-05:00

It's one little word that means so much. No. No. No.
The word "No" usually gets a bad rap, and it's a word that no one likes to hear.... often.

I may not like the word "No", however there are many times I appreciate it. When working in any sales oriented profession, you spend a good part of your day reaching out to your prospective customers. If someone truly isn't interested in my services, I appreciate hearing a definitive "No" for closure. Otherwise, and we've all done it, we spend a lot of time following up, leaving messages, sending emails etc.

On the flip side, it can be hard to say "No". It can be uncomfortable to tell someone you are not interested in their services. Put yourself in their shoes and do them a favor. Be honest. If you truly need more time to think about it, take the extra time and think about it so you'll have an answer the next time they follow up. But don't string someone along just because you feel bad telling them you aren't interested.

By saying "No" you'll free up their valuable time and yours as well.
And we can all use a little extra time, NO?

As always, I'd love to hear your additional thoughts.

Be well,
Rhonda

Give a little bit....

2010-01-15T08:32:00.005-05:00

Living and working in a community lends a sense of ownership and responsibility towards the well being of that community. Nothing illustrates your support more than giving back in some way.

Research the non-profit and charitable organizations in your area and find some time to help out. There are so many causes out there that you may not know about and they can all use your help. Join a fund-raising committee or volunteer at an event. Not sure how to go about choosing an organization to be a part of? Check out this List of Connecticut Non-Profits posted on ThisIsCT.net

A more comprehensive list resides at VolunteerMatch.org, offering a variety of online services to support a community of nonprofit, volunteer and business leaders committed to civic engagement.
Even registering for a single event can help. Last summer a group of us participated in the Susan G. Komen Breast Cancer 3 Day. We walked 60 miles over 3 days and each of raised $2,300.00 for Breast Cancer Awareness and Research.
Help can come in many ways. Recently, a non-profit client needed help identifying a vacant downtown location that could be utilized for an overflow shelter during the winter months. I volunteered my services to reach out through my real estate networks and resources to come up with some options. No matter what sector or industry you work in, there are many ways you can help your community. You could donate your services for a particular project or event. You could donate items for a raffle. You could host a fund raising event. You could simply toss your loose change into to the boot of a firefighter. It all helps!
Some of my favorite organizations that I enjoy being a part of are Best Buddies, The American Lung Association, Autism Speaks and Kiwanis.
I'd love to hear about your favorite ways to give back. Don't hesitate to send me your thoughts!

Be well,
Rhonda

Bring your pet to work day!

2010-01-12T08:30:00.005-05:00

Over the last couple of months I've been to quite a few offices and have been greeted not only with a handshake but also by a wagging tail and generous kiss. No, the last two are not from my client but from their best friend of the canine variety. I find those being my favorite meetings as having a dog around adds so much to the atmosphere.

It's a great ice-breaker and conversation starter. It instantly builds rapport and gives you something to have in common especially if you have pets too. I also find that it lightens the mood. Who can't help but smile at that cute face? Even though you may have serious items to discuss having a dog around can lighten up the mood and tends to make us feel at home.

One thing to remember however is that not everyone is comfortable around dogs. Out of courtesy, always ask. If it's going to cause someone anxiety or an allergic reaction, make sure you have an office with a door where Fido can stay until after your client or guest leaves.

Please don't hesitate to send me your additional thoughts.

Be well,
Rhonda

What does shoveling snow have to do with it?

2010-01-08T10:38:00.001-05:00

So far it's been a snowy winter. Snow shoveling, while not something I consider fun, is something I consider a necessity. Last time I was out, I found a new respect for it as I realized the fundamentals can be applied to running any business.

1. Devise a plan: Should you start with the driveway or the walk way? Seems trivial but you may need different tools (such as a snow-blower or plow versus a shovel) for each. Plan it out.

2. Don't deviate from your plan: If you do a little section at the base of the driveway and then decide you should head to the other end and shovel out what the town plow has left behind and then perhaps run over and clear the front steps you are going to become frustrated as you'll spend a lot of time and have nothing completed.

3. Stay focused: Even though it feels like a tedious task, doing the right the first time will save you time and headaches later on.

Before you know it, you'll turn around and the driveway will be spotless! Success!!

Anything to add? Please don't hesitate to send me your additional thoughts.

Be well,
Rhonda

Daily Tools and Technology for Real Estate Professionals

2009-11-29T13:50:00.000-05:00

Here is a list of my favorite technology tools:
1. Getting your emails on your phone: I resisted having to pay that pesky data charge to my cellular carrier for years. However, the fact that I can be out of the office all day and stay on top of my emails won out in the end. Many of my clients correspond with me via email and being able to respond in a timely manner makes us both feel good :-)

2. Voice Recorder: It happens everyday. You are out driving around and see a property that you need to make note of. You start fishing around for a piece of paper and a pen all while trying to stay in your own lane. Then you scrawl (it's so badly written it can't even be classified as a scribble) the address down and pray you can decipher the chicken scratch later. Save yourself, your car and everyone else on the road - use a voice recorder. Most cell phones have the ability to capture voice notes. If yours does not, you can purchase a tape recorder anywhere for next to nothing.

3. GPS: Time is money. Grab yourself a GPS to take you door to door instead of driving around in circles because the street sign is missing or there's no number on the property. With so many models available you can easily find one that fits your needs without breaking the bank.

4. Flashlight: This is on the list more for me than for you since I never seem to have a flashlight with me when I need one. Keep one in every vehicle, throw an extra one in your bag. There is nothing worse than arriving to show a property that has no electricity and realizing you don't have a flashlight with you.

5. Measuring Device: There are many options from a traditional tape measure to a wheel to a laser measuring device. This is another of those tools you should never be without.

Have any other items that I left off the list? Let me know! As always I appreciate your feedback.

Be well,
Rhonda

Get Your Building Tenant Ready

2009-11-15T14:30:00.001-05:00

First impressions matter. Take the time to get your commercial building in order so that it presents well to prospective tenants.

First, make sure your landscaping is neat and tidy. You don't have to go crazy, just keeping the lawn mowed and the weeds at bay make a major difference.

Fill in the pot holes in the parking lot. No one wants to have to maneuver around a parking lot full of pot holes. No one.

Keep common areas of the building clean. Even if the building is completely vacant, make sure the restrooms are clean and ready to use. It sounds silly, but I've had prospective tenants pass on a building because of the condition of the restrooms.

Keep the vacant office / retail suites broom clean. If a previous tenant left items behind get rid of them promptly. If the items may be of use to the next tenant, make sure they are positioned neatly.

These small steps will help a prospective tenant feel secure that the building will support their brand/image in the community.

Don't hesitate to add your additional thoughts.

Be well,
Rhonda

Real Estate Designations

2009-11-09T09:53:00.001-05:00

Ever wonder what all those abbreviations stand for next to a real estate agent or broker's name? Here is a handy list that can help you understand and appreciate their meanings:

Accredited Buyer's Representative / ABR®

ABR® education provides REALTORS® with what they need to stay competitive in today's market. Member benefits such as marketing tools, a referral network and other resources, help to promote their business.

Accredited Buyer's Representative Manager / ABRM^sm

The ABRM^sm real estate broker course was developed for managers, brokers and owners who wish to better incorporate buyer representation into their company’s service offerings. Designees have taken and passed both the ABR® and ABRM^sm course and provided documentation of past management experience.

Accredited Land Consultant / ALC^sm

The REALTORS® Land Institute serves a unique constituency in the real estate industry -– those who broker, lease, sell, develop, and manage land assets, including vacant, transitional land; agricultural and pastureland; timberland; and ranch and recreational properties. Through its rigorous Land University curriculum, the REALTORS® Land Institute confers its Accredited Land Consultant (ALC^sm) designation to only those real estate practitioners who achieve the highest level of education, experience, and professionalism.

Certified Commercial Investment Member / CCIM^sm

CCIMs are recognized experts in commercial real estate brokerage, leasing, valuation and investment analysis. The CCIM business network includes more than 7,500 designees and an equal number of candidates principally in North America, but also in Asia and Europe. CCIMs are backed by a respected education program, as well as superior technology products and business resources.

Certified International Property Specialist / CIPS®

The Certified International Property Specialist Network (CIPS Network) comprises 2,500 real estate professionals from 50 countries and is the specialty membership group for global business practitioners of the National Association of REALTORS®. The CIPS® designation focuses on culture, exchange rates, investment trends, and legal issues.

Certified Property Manager / CPM®

Acquire valuable real estate management skills through educational offerings leading to the CPM^® designation. CPM^® Members have the competitive edge in every area of real estate management from residential to commercial to industrial.

Certified Real Estate Brokerage Manager / CRB^sm

The Certified Real Estate Brokerage Manager (CRB^sm) is one of the most respected and relevant designations offered in real estate business management. The CRB^sm designation is awarded to REALTORS^® who have completed advanced educational and professional requirements. CRB^smDesignees are better positioned to streamline operations, integrate new technology and apply new trends and business strategies.

Certified Residential Specialist® / CRS®

Agents can maximize their potential by earning the CRS® Designation and joining the organization that has served top-producing residential sales agents since 1977. Designation is awarded to experienced REALTORS® who complete advanced training in listing and selling, and meet rigorous production requirements.

Counselor of Real Estate / CRE®

The Counselor of Real Estate – or CRE – is a member of The Counselors of Real Estate, an international group of recognized professionals who provide seasoned, objective advice on real property and land-related matters. Only 1,100 practitioners throughout the world carry the CRE® designation. Membership is by invitation only.

General Accredited Appraiser, GAA^sm

Certified general appraisers wishing to increase their visibility should consider pursuing the GAA^sm designation. The GAA^sm designation is awarded to appraisers whose education and experience exceed state appraisal certification requirements and is supported by the NATIONAL ASSOCIATION OF REALTORS®.

NAR's Green Designation / GREEN

The National Association of REALTORS® created NAR’s Green Designation to provide ongoing education, resources and tools so that real estate practitioners can successfully seek out, understand, and market properties with green features. The course curriculum requires completion of a 12hr Core Course and a 6hr Elective Course in either residential, commercial, or property management giving designees the tools to become a community leader and resource in sustainable issues.

Graduate REALTOR® Institute / GRI^sm

Members involved in residential real estate who want a solid base of information for their practice will want to participate in the REALTOR® Institute program and earn the GRI^sm designation.

Performance Management Network / PMN

The Performance Management Network (PMN^sm) is a new, unique designation to the REALTOR® family. The curriculum is driven by the following topics: negotiating strategies and tactics, networking and referrals, business planning & systems, personal performance management and cultural differences in buying and selling.

REALTOR® association Certified Executive / RCE

Association executives interested in demonstrating commitment to the field of REALTOR® association management should pursue the RCE^sm designation. AEs are recognized for their specialized industry knowledge and their association achievements and experience.

Residential Accredited Appraiser / RAA^sm

The RAA^sm designation is awarded to certified appraisers whose education and experience exceed state appraisal certification requirements and is supported by the NATIONAL ASSOCIATION OF REALTORS®.

Seniors Real Estate Specialist, SRES®

The SRES® Designation program educates REALTORS® to profitably and ethically serve the real estate needs of the fastest growing market in real estate, clients age 50+.

Society of Industrial and Office REALTORS® / SIOR®

Individuals certified with the SIOR® designation are top producers in industrial and office real estate brokerage. SIOR's network includes more than 2,800 members in 480 cities in 20 countries on six continents. The Society's mandatory re-certification requirement assures clients of the designee's excellence in the fast changing commercial brokerage field.

NAR Family Certifications

At Home With Diversity / AHWD®

A ground-breaking professional education initiative. AHWD certification relays to the public that those certified have been professionally trained in and are sensitive to a wide range of cultural issues inviting a wider volume of business from a greater variety of cultures.

Resort & Second-Home Property Specialist / RSPS

RSPS certification is offered by NAR Resort for resort and second-home professionals around the world. REALTORS® specializing in resort and second-home markets and interested in demonstrating their knowledge and expertise should pursue the RSPS certification. The RSPS core certification requirement includes the NAR Resort & Second-Home Market Course. RSPS applicants will also choose from twenty three different elective choices including courses from the NAR Education Matrix and the NAR Resort Symposium held every 18 months.

Short Sales and Foreclosures Resource / SFR

REALTORS® with the SFR certification can be a trusted resource for short sales and foreclosures.

As always, I'd love to hear your additional thoughts.

Be well,
Rhonda

Like your mother always said, "Do Your Homework!"

2009-11-02T08:19:00.001-05:00

I heard a surprising tale about a small condominium that was being sold by an owner who only owned the property for about 6 months or so. As it turned out, in preparing for the closing the real estate attorney uncovered a very unfortunate fact. There was a blight lien placed on the property over 2 years before and the meter was still running at a rate of $99.00 per day, with a balance of over $80,000.00 owed.

Somehow, some way the lien was overlooked when the property was sold 6 months earlier and the lien transferred with the property. The current owner who was in the process of selling the property now found themselves responsible for paying the lien. Luckily, they have a title insurance policy and can put in a claim to get the bill paid, though it may take some time. Until then, the transaction is on hold since marketable title cannot be issued to a new owner until the situation is resolved.

Of course I have taken a very complex situation and gave you just the simple facts. There is much more to the story regarding how it could of happened, why it happened and how it can be resolved.

The moral I'd like you to take away from my short rendition of this story? Do your homework! Whether you are the seller, the buyer or the real estate broker go to City / Town Hall and find out if there are any liens against the property that may not be known about. It can save you a bundle in money, time and stress medication!

I'd love to hear your additional thoughts!

Be well,
Rhonda

Safety on the Job

2009-10-25T19:21:00.003-04:00

Safety is important in every industry. Real estate, however seems to need a couple extra reminders since on a daily basis agents and brokers can find themselves with a perfect stranger in not so perfect circumstances such as a vacant home or building.

I think one of the most important things that any licensee should do is make sure someone knows where you are headed. It's an easy one to overlook since a request can come in to see a property while you are out on the road, but it's important that someone knows the exact address of the property you are showing.

Don't ever put strangers in your car. Meet them at the property instead. When you pull up, make sure you don't park where your car can get blocked in. Before you get out of your car, take a picture of the prospect's vehicle and license plate number. Better yet, text the pictures back to the office so they have it on hand if needed. If you can get a picture of the prospect as well, do it!

Keep your cell phone with you in hand while showing property. The last thing you want to do is have to dig it out of your bag or your pocket if you find yourself in need of immediate help. A colleague of mine has even had someone on the other line while showing a vacant building with no electricity.

Use the buddy system whenever possible. There is nothing wrong with asking a colleague to join you. When I've been unable to have someone accompany me, I'll tell a prospect that a colleague is showing property in the area and will be stopping by momentarily.

Carry pepper spray with you. You can purchase cans that attach right to your keyring. And keep your keys in your hand - they can be used as a weapon if needed. Also, if you find yourself in danger, set off the panic button on your key ring so your car alarm goes off to alert someone you are in need of help.

If you are attacked, SCREAM! Yell "Fire", "Call 911". Don't keep silent!

Keep your eyes open and stay aware at all times. I feel like I should say that one again..... Keep your eyes open and stay aware at ALL times!

There are many tips out there and your real estate office may have their own safety policies and procedures in place. Here are a couple of very worthwhile links:
The National Association of Realtors - Field Guide to Realtor Safety:
Saftety Steps for Women Realtors - Don't make yourself a target!

Be safe out there and please don't hesitate to send me your additional thoughts.
Be well,
Rhonda

Choosing the right broker

2009-10-19T18:42:00.000-04:00

So you are ready to move your business to a new location and want to work with a commercial real estate broker to help you find the right space. How do you choose the best broker for the task at hand?

Here are a few things to consider:

Look for a broker who knows the area since they will know the local market first hand. They'll have relationships with area building owners and may have the inside scoop on un-advertised available spaces. They'll also have a better understanding of the local market rates as they can be very different from region to region within the same state.

Ask your friends and colleagues to refer you to a broker they have used and trust.

When you are reaching out to brokers, how quickly do they respond? Most commercial real estate business is done Monday to Friday during normal business hours so keep that in mind if you are making calls on the weekend. However, during the work week, calls should be returned within a reasonable time frame. That goes for email as well.

Set up a brief meeting to talk about your space requirements face to face. Brokers should be willing to come to your existing location to get a better understanding of your business operates in your existing space. Having a visual of how your business operates can be advantageous to a broker when they are searching out properties. Also meeting face to face can give you a chance to talk and be sure your personalities are compatible.

Give it a test run. Offer to sign an Exclusive Buyer's Agreement for a very short period of time and for only the properties that particular broker shows to you. That way, you aren't locked in if for some reason you don't feel you made the right choice, however the broker is protected for the properties they showed. Once you are comfortable, you can extend the agreement to a longer time frame.

Finding the right property can be a long and tedious process so having an expert in your arsenal who knows the territory and the ins and outs can be extremely advantageous. It also allows you to have the time to keep doing what you best.... running your business.

I hope these tips are useful and please don't hesitate to send me your additional thoughts.
Be well,
Rhonda

It's Blog Action Day. Let's talk about Climate Change!

2009-10-15T09:07:00.002-04:00

I was reading my friend Wendy Battle's Blog this morning (www.healthy-endeavors.com) and saw that today is Blog Action Day. Being relatively new to blogging I had no idea such a thing existed but I knew immediately I wanted to be a part of it :-)

When it comes to climate change there are many ways we can help. We can be a part of the large movement and support efforts. Check out Greenpeace.org and get involved!

The Copenhagen Climate Summit takes place in December 2009. The goal of the summit is to have our world leaders present and commit to:

Make sure emissions peak in 2015 and decrease as rapidly as possible towards zero after that

Developed countries must make cuts of 40 percent on their 1990 carbon emisisons by 2020

Developing countries must slow the growth of emissions by 15-30 percent by 2020, with support from industrialised nations

Protect tropical forests with a special funding mechanism - forests for climate

Replace dirty fossil fuel energy with renewable energy and energy efficiency

Reject false solutions like nuclear energy

What can you personally do to help?
Go to Greenpeace.org and sign the petition to ask our heads of state to personally attend.
Attend an event on October 24, which is International Day of Climate Change. Click the preceding link and use the handy map tool to find events in your area.

We can also battle climate change right in our own homes and buildings. Here's a brief list from Greenpeace.org

1. Use efficient lighting
Replace incandescent bulbs with compact fluorescents (CFLs). Compact fluorescents use four times less energy, and last eight times longer (8,000h instead of 1,000h) than incandescent light bulbs.

2. Buy efficient electric appliances.
They use two to 10 times less electricity for the same functionality, and are mostly higher quality products that last longer than the less efficient ones. In short, efficient appliances save you lots of energy and money.

3. Refrigerators:
Buy a high efficiency refrigerator that consumes around 100 kWh/y. This is 10 times less than the average in the US, and four times less than the EU average. For most home consumers it is better to buy a two door refrigerator/freezer combination with separate compartments, than a separate refrigerator and freezer. Refrigerator/freezer combinations where the freezer is at the top or bottom of the unit are generally better than ones with side by side doors. Of course, you should always compare energy consumption ratings, pay attention to energy efficiency labels (see above), and look for Greenfreeze technology.

5. Clothes washing machines
Buy a high-efficiency model with a power consumption of less than 0.9 kWh/washing cycle.

6. Clothes dryers
Consider drying the natural way (i.e. on a clothes line outdoors) if practical, this will save you 3-4 kWh/washing cycle. If line drying is not an option, first make sure that your washing machine can spin at 1600 or even 1800 rpm. This will almost halve the energy needed for drying. Drying through spinning is 20 times less energy intensive than with heat.

There are two clothes-drying technologies that use far less energy: the gas-fired clothes dryer and the dryer with an electric heat pump. The gas-fired dryer is the best alternative, especially for more intensive use: it uses 60 percent less energy (including the gas) and dries 40 percent faster. If gas is not available, consider a dryer with a heat pump. A heat pump dryer will use half the electricity of a traditional dryer. However, heat pumps can be rather expensive.

7. Dishwashers
An efficient dishwasher consumes no more than one kWh/washing cycle, compared with 1.4 kWh for an average model. Consider a 'hot fill' model which connects directly to your efficient gas fired hot water heater. That way, gas is used to heat the water instead of electricity, thereby reducing electricity consumption by 50 percent, or even up to 90 percent for the top models. This is because gas is almost twice as efficient for heating water as electricity. Note that installing a 'hot fill' needs to be done properly so good advice is required.

8. Computers and IT

Buy a laptop instead of a desktop, if practical. It consumes five times less electricity.

9. Cut off standby losses ("The vicious energy-suckers")

Most modern electric appliances consume electricity even when turned off. For TVs, VCRs, faxes, HiFis, computer screens, cable boxes, and broadband modems this is on average some 40 – 120 kWh/y. In total, household losses can reach several hundreds kWhs/y, all for doing nothing useful.

The best solution is to buy appliances that have a very low standby energy consumption.
A power strip is also the most practical way to switch of VCR, TV and DVD-player stand-by losses (you can cut off all three devices at once).

10. Do not use an electric boiler (hot water heater) for hot water ("Heat the water, not the sky!")

An electric boiler consumes about 3,200 kWh/y (average OECD). But producing that electricity in highly inefficient gas, coal or nuclear plants, and then transmitting that electricity down the power line to your home costs some 9,600 kWh in electricity wasted as heat - so roughly 2/3rds of the energy is lost before it even reaches your home. Using gas or oil directly to heat water reduces energy use to 3,800 kWh.

A solar boiler can further halve that figure to 1,900 kWh in a moderate climate zone (and even less in sunny regions) - for a total energy savings of about five times what the electric boiler uses. However, do not use a solar boiler combined with an electric heating, as this will be less efficient than a gas boiler alone - the energy cost of the electric heating usually wipes out the savings gained by the solar boiler.

11. Use a water-saving shower head
The water-saving shower head delivers high comfort for only half of the water use (5-7 litres/min. Instead of 10-18 litres/min.).

12. Do not use electric space heating
Same reasons as for the electric boiler. Instead add insulation, and (ideally) heat your house using a renewable energy solution like solar thermal. However, gas heating is still far better than electric heating.

To see the full details of the above list go to: http://www.greenpeace.org/international/campaigns/climate-change/take_action/your-energy

For more information and additional resources visit www.blogactionday.org

There are many things we can do to help. Individually and collectively, we CAN make a difference!

Please don't hesitate to send me your additional thoughts.

Be well,

Rhonda

Office Mates 101

2009-10-12T06:46:00.002-04:00

There has been an increase in interest lately about office sharing. As a business owner in the present economy, you may find yourself in situation where you have extra space that you are not currently utililing. It may be because you had to downsize recently or perhaps you leased the space with the anticipation of growth and now you'd simply like to cut back on your expenses. Whatever the reason, it could be a great option to bring in some extra cash flow.

The first thing you need to do, is check your lease for a sublease clause. The language should read that as the Tenant, you have the right to sublease your space with the Landlord's approval. If this clause is not present in your existing lease, then you will need to talk with your Landlord and get approval before proceeding.

In this situation, you will become the Sub-Lessor and your new office mate will become your Sub-Lessee or Sub-Tenant. The Sub-Tenant will pay their monthly portion of the lease to you. It is extremely important to remember that you will continue to be responsible for making the lease payment in full every month to your Landlord, even if your Sub-Tenant fails to pay you his/her portion of the rent.

Once you know you are able to proceed consider working with a commercial real estate broker and have them assist you in finding a sub tenant. It would be beneficial to find an office mate who's business compliments yours. This way, not only do you improve your bottom line in regards to your lease payments, but you may be able to collaborate on projects together.

Once you identify your sub-tenant and get your Landlords approval, it's vital to get the relationship off on the right foot. Put a sub-lease in place and use a real estate attorney for legal terms! Both you and your sub-tenant need to know and understand what your obligations are to each other and the best way to do that is to put it in writing.

Here is another post on the topic, by WomenEntrepreneur.com

Please don't hesitate to send me your additional thoughts.
Be well,
Rhonda

Lease Commencement vs. Rent Commencement

2009-10-07T08:30:00.002-04:00

When talking about commercial leases, two dates that will be extremely important to you whether you are the Lessor (Landlord) or the Tenant (Lessee) are the Lease Commencement Date and the Rent Commencement Date.

The Lease Commencement Date is the date in which the lease goes into effect legally binding the parties the parties to the terms of the lease.

The Rent Commencement Date is the date in which the Lessee begins to pay rent to the Lessor.

In many cases these dates may be the same and as a Lessee you will pay your first lease payment at the time in which you sign the lease. However, these two dates can be different.

In one instance, this can occur when there needs to be done work to the space for the new Tenant. Perhaps some offices need to be built out, or the space needs fresh carpets and paint. Nowadays, Landlords may also be willing to offer an incentive to bring a viable Tenant into their building by offering a rent-free period for three months or so.

The Rent Commencement Date may be either a fixed date or a floating date. If you are the Tenant, you may want to push for a floating date especially if the Landlord is responsible for performing the work on the space to get it move in ready. If there is a delay in the work getting completed on time, you may be responsible for paying rent before you can actually move in.

When negotiating the terms of your lease whether you are the Landlord or the Tenant, be sure to use an attorney for legal terms and advice!

Please don't hesitate to send me your additional thoughts.
Be well,
Rhonda

Useable vs Rentable Square Footage in Commercial Space

2009-10-05T08:59:00.002-04:00

Terms like Useable Sqare Footage and Rentable Square Footage are very important in the leasing of commercial real estate space. Depending on the building, the two numbers can be very different. So, what does it all mean?

Useable Square Feet (USF) is the amount of square feet measured within the confines (Premises) of the tenant’s space. Determining the appropriate USF is extremely important to the tenant since that is the area where your business will operate.

Rentable Square Feet(RSF), on the other hand combines the USF plus the common area factor of the building. RSF is also extremely important since this number will be used in calculating your rent.

In essence, the common area factor (load factor, loss factor) of a building is calculated by determining the percentage of space of all the common areas of the building such as the lobby, common restrooms, hallways and so forth. It can be a vague science of how that number is exactly calculated, however agencies such as BOMA (Building Owners and Managers Association International) sets forth standard methods of measuring.

In calculating your Useable Square Feet, you would take the Rentable Square Feet and and subtract the common area factor. For example, if an office suite is advertised as 3,500 RSF with a loss factor of 12%, you would multiply 3,500 x .12 which equals 420 SF. Then subtract 3,500 - 420 which gives you approximately 3,080 USF.

Both RSF and USF figures should be documented in your lease agreement. Be sure you fully understand the figures and terms before signing your lease as they will impact your operations and your bottom line. As always, consult with a real estate attorney for legal terms!

Check out these articles:

Loss factors in New York City commercial market (AllBusiness.com)

Hunt Corporate Services: Rentable and Useable Square Feet

BOMA(Building Owners and Mangers Association International)

Don't hesitate to let me know your additional thoughts.

Be well,

Rhonda

The advantages of signing an Exclusive Buyers' Agreement with a real estate broker

2009-10-02T07:25:00.001-04:00

We all understand the concept of signing an exclusive listing agreement when putting a piece of our real estate up for sale, however when it comes to being the buyer and being asked to sign an Exclusive Buyers' Agreement we tend to think doing so will put us at a disadvantage.

Signing an Exclusive Buyers' Agreement can in fact be very beneficial. Without one, a broker can only show you properties that they have listed. You would have to spend an ample amount of your time calling around to different brokers to find out what they have listed.

Signing an Exclusive Buyers' Agreement with a broker allows that broker to look at not only their listings, but all the listings in the entire market area. They would compile a list of all the properties that may fit your needs and help you narrow it down. In addition, they would coordinate the property tours with the listing brokers and then compile the information so you could make a final decision on the property that truly fits your needs. Your broker will then with your guidance, submit an offer and represent you and negotiate on your behalf during the entire transaction to be sure your best interest is represented.

By working with one exclusive broker you are giving yourself access to the entire market in order to find the one property that would best suit your needs. Otherwise you are giving yourself a very narrow view of what is available. In the end, you are allowing yourself the best chance at finding the right property all the while saving yourself valuable time, allowing you to do what you do best - run your business.

Don't hesitate to let me know your additional thoughts.

Be well,

Rhonda

Utilizing the Economic Development Commission

2009-09-30T08:00:00.001-04:00

Your city or town's EDC can be an extremely valuable resource. I recently took a listing that required some out of the box thinking on how to effectively market it. It was also the first time I had a listing in this particular city and I felt a little insight on the business residents was in order.

I contacted the EDC office and scheduled a time for the commissioner to come out and tour the building. At the end of meeting, not only did I have good understanding of the area businesses, but I also knew who might be looking to expand, who might be looking to move and who might be looking to come into the area.

As a real estate broker, the advantages to knowing the EDC staff is a tremendous resource. For businesses it is equally advantageous. If your business is thinking about opening a location in a new city, the EDC can inform you about any tax incentives, available commercial spaces and many other resources that may be helpful to you and your business.

To contact a local EDC, head to the town/city's web site.

Don't hesitate to let me know your additional thoughts.

Be well,

Rhonda

NNN vs Gross Leases

2009-09-28T08:30:00.002-04:00

When researching spaces for lease, you may have noticed terms like "NNN", Triple Net, Gross, Modified Gross in association with a PSF (per square foot) rate. Here's a quick rundown on what those terms mean:

NNN / Triple Net / Net Net Net: This type of lease is one in which the tenant, in addition to base lease rate is to pay all operating expenses of the property such as RE taxes, building insurance and CAM (Common Area Maintenance). Line items under CAM generally include snow removal, landscaping and grounds maintenance, common area cleaning such as the lobby, restrooms etc.

The Landlord should have projected operating expenses costs. Your broker should also ask for actual operating expenses for the prior 3 years so you can see the operating expense history. Discuss what should be included in operating expenses.

Capital Improvements such as roof replacements or parking lot repairs are not operating expenses, though some Landlords will try to pass the expense onto the Tenant. Be sure you ask for the full list of operating expense items before you commit.

NNN charges are generally billed separately by the Landlord to the Tenant periodically. It could be monthly or quarterly or as the bills come in.

Gross: A lease in which all expenses associated with owning and operating the property are paid by
the landlord. Gross lease rates will generally be higher than NNN lease rates as the building and operating expenses are included in the rate. Utilities may or may not be included, be sure to ask. If you are responsible for your own heat, find out the specifics as to whether it's oil / gas etc and get the costs associated for the last 3 years so you can plan your budget.

Modified Gross / Modified Net: These terms can mean just about anything. The landlord may want the asking rate plus real estate taxes. Or the asking rate plus CAM. Or the asking rate plus electric, etc.

Don't be afraid to ask questions and obtain expense history so there are no surprises. I find it helpful to create a spreadsheet with the expense details of the 3-4 buildings my clients are considering so they can accurately compare the costs and aid them in making an informed decision.

Don't hesitate to let me know your additional thoughts.
Be well,
Rhonda

Considerations when choosing a new location for your business

2009-09-25T06:50:00.006-04:00

There are many factors to consider when you choosing new location for your business:

* What is your monthly budget allowance for rent (Before utilities)?

* How much space do you need? There are handy calculators available to assist you in this task if needed.

* Type of location: Retail Plaza / Office Building /Stand-alone Building /Industrial Park

* Do you need prime visibility? Do you need high traffic volume traveling past your business each day or is your business one that your clients will seek out?

* Does your business need access To public transportation? Some business' rely on public transportation to bring their clients to them so being on a bus line may be the way to go.

* Zoning: Make sure your use is allowed in your new location. This is something you will want warranted and represented by the landlord in your lease. This will allow you to break your lease and avoid being put out of business by the town/city for non-conforming use. (Always use an attorney to for legal terms!)

* Length Of Term - how long are you willing to commit to staying in your new location?

* Tenant Improvements - You'll need to find out if the landlord is willing to perform the fit up at their cost or at least share the cost with you.

* What are your parking needs? For downtown locations, parking can add a hefty expense and inconvenience to your staff and clients.

* Remember, during your lease negotiations, ALWAYS use A Real Estate Attorney for legal items! Make sure that all business terms are fully understood by both parties before entering into any lease.

Don't hesitate to let me know your additional thoughts.
Be well,
Rhonda

Effective Business Development Tools

2009-09-23T10:50:00.000-04:00

I'm often asked how I generate new business. I've used different tools to reach out to the community of business owners in order to introduce myself, get to know them and begin fostering a business relationship to gain their trust in order to assist them in finding space, a new tenant or an investment property. I know it sounds like a lengthy process, but it is!

It is very difficult to sell your real estate services "over the phone" these days. Reaching out via phone (cold calls) has it's place in my day to day repertoire and I find it most effective when looking for a tenant to fill one of my listings. I start with a specific listing, make a list of professionals whose business model fits best and start calling. The purpose of these calls are not to gain them as a client, but instead let them know I have a vacant space that may fit their business and to find out if by chance their lease is coming due and they'd like further information. And yes, I've even gained new clients from those calls when the space I'm highlighting may not fit, but they give me the chance to find the space that does.

As consumers and business owners become more and more impatient with being advertised to on a constant basis, I look more to the power of networking and warm referrals to generate business. To do this, you simply have to get out there and get out there often. There are many events and organizations in your local area making it easy to find at least one evening or lunch time event per week that you can attend. Here are a couple of tips and suggestions on how to become a prominent member of the business community in your area:
- Join your local Chamber of Commerce: they have many events during the month
- Attend a couple of "Business After Hours" events per month
- Consider joining a professional organization
- Visit a local BNI chapter. Go to www.BNI.com for more information
- Volunteer with a non-profit organization
- Join LinkedIn, Twitter and perhaps even start a Blog :-)

Most important of all, be patient and consistent, it takes time.
Don't hesitate to let me know your additional thoughts.
Be well,
Rhonda

RJMesenbourg - Real Estate Broker

The Importance of RESPA

Functional Obsolesence - what is it and can I do anything about it?

Splash on the Color!

Real Estate Revival

Cold Calls - Back to Basics

Patience is a virtue, really!

Savings Savvy - just a few tips and tricks

Just say "No!"

Give a little bit....

Bring your pet to work day!

What does shoveling snow have to do with it?

Daily Tools and Technology for Real Estate Professionals

Get Your Building Tenant Ready

Real Estate Designations

Ever wonder what all those abbreviations stand for next to a real estate agent or broker's name? Here is a handy list that can help you understand and appreciate their meanings:

Accredited Buyer's Representative / ABR®

Accredited Buyer's Representative Manager / ABRMsm

Accredited Land Consultant / ALCsm

Certified Commercial Investment Member / CCIMsm

Certified International Property Specialist / CIPS®

Certified Property Manager / CPM®

Certified Real Estate Brokerage Manager / CRBsm

Certified Residential Specialist® / CRS®

Counselor of Real Estate / CRE®

General Accredited Appraiser, GAAsm

NAR's Green Designation / GREEN

Graduate REALTOR® Institute / GRIsm

Performance Management Network / PMN

REALTOR® association Certified Executive / RCE

Residential Accredited Appraiser / RAAsm

Seniors Real Estate Specialist, SRES®

Society of Industrial and Office REALTORS® / SIOR®

NAR Family Certifications

At Home With Diversity / AHWD®

Resort & Second-Home Property Specialist / RSPS

Short Sales and Foreclosures Resource / SFR

Like your mother always said, "Do Your Homework!"

Safety on the Job

Choosing the right broker

It's Blog Action Day. Let's talk about Climate Change!

Office Mates 101

Lease Commencement vs. Rent Commencement

Useable vs Rentable Square Footage in Commercial Space

The advantages of signing an Exclusive Buyers' Agreement with a real estate broker

Utilizing the Economic Development Commission

NNN vs Gross Leases

Considerations when choosing a new location for your business

Effective Business Development Tools

Accredited Buyer's Representative Manager / ABRM^sm

Accredited Land Consultant / ALC^sm

Certified Commercial Investment Member / CCIM^sm

Certified Real Estate Brokerage Manager / CRB^sm

General Accredited Appraiser, GAA^sm

Graduate REALTOR® Institute / GRI^sm

Residential Accredited Appraiser / RAA^sm