Danger Report – Time To Clean House

Danger Report - Bad Agents

The DANGER Report – what top agents have always known!
In an industry where practitioners (agents and realtors) own actions and have increasingly caused concern about the quality and value of agents from the general public’s perspective, it is nice to see that concern has been reported to the major industry trade association – (NAR) the National Association of Realtors. The comprehensive report was recently released and distributed to industry associations, realtor boards, mls systems, and brokers and agents – it allows the industry to take an sobering internal look at present problems and possible future events that can impact and even change the way real estate operates in the future – especially if the industry does not make appropriate changes.

To NAR’s credit, they commissioned the DANGER report which was performed by the independent industry think tank the T-3 Group headed up by Stephan Swanepoel to assess the current state of the real estate industry and develop a list of impending threats to the real estate industry as a whole, and categorized these dangers by the level of impact, the likelihood of the event, and time frame the event might make an impact.

The Number 1 Danger to The Industry – Incompetent Agents!

The report found that a vast number (several sources report up to 80% or more) of typical real estate agents are marginal – only work part-time, are poorly trained, unethical, and/or are incompetent!  This group of substandard agents drags the industry down – this causes agents everywhere including the professional agents to be viewed as less credible.


This is a report for the industry, but buyers and sellers should see it too – view the Danger Report. This huge number of poor quality agents not only pose a danger to the unsuspecting (and in many cases irresponsible) public that hire them – but they tarnish their own industry and harm the image of all agents (the 20% of “good” agents who are competent and caring.) That is why it has become increasingly important for the elite level agents – those who have transcended the role as salesperson/generalist to become true Expert Advisers (a group that number less than 5% of all agents) to articulate their value proposition and DISTINGUISH themselves from the 80% of bottom feeders!

As the report states, this huge percentage of poor quality and incompetent agents threaten the long term viability of the real estate industry itself. Unfortunately, if the buying and selling public don’t begin demanding more, (and that is a problem in itself) internal changes are unlikely, and the status quo will likely remain for a while to the detriment of the public and the industry.

As I see it, several issues drive this industry problem:

Problem 1. The largest by far – the bar to entry into the real estate field to become a licensed agent is and has been far too low – and the industry does not seem interested in improving the educational standards and requirements, because that would eliminate a lot of dues paying members – including those that got in for the wrong reasons and never should have gotten a license – all the bored homemakers, laid off and broke ex employees, restless retirees, and others who get into the business everyday for all the wrong reasons and then leave or flounder on. The wrong reasons are: greed – looks like easy money…helplessness – I need a job…boredom – I need something to do…uncaring/selfish – I want a job I can do part-time, (regardless of how my unavailability impacts my clients and other agents), etc.

People who aren’t passionate about this business and helping other people, who aren’t committed to being their best, and who aren’t properly funded and prepared to make the investments in business systems and training needed to succeed and DIFFERENTIATE themselves from the masses of inept agents are destined to fail. These are the ones who hang in for a year or two or three and call themselves agents, yet barely do a transaction or two or none, and are a definite cancer on the industry!
Significant added requirements are the solution – that would reduce the ridiculous excess of so-so agent/salespersons we have today – (Atlanta has well over 40,000 agents) – but of course that would impact brokerage and association fees at every level and therein lies the problem – that’s why change will come slowly of at all from the industry. It’s so easy people from all walks of life with no prior experience in real estate at all become agents. I met a retired Lockheed avionics technician at a recent Negotiation training event, and he became an agent (with a major franchise firm) – simply because the agent who sold him his home suggested he become an agent and join the firm!

The above leads to Problem 2. membership fees – brokers and MLS associations push constant recruitment efforts to drive fees and expansion for their firm – and affiliated agents get a bonus for bringing new meat on board their firm. With all due respect, this elderly gentleman was probably great at his job at Lockheed, but I could tell from his questions and general input, even after over 1.5 years of training with (a rapidly growing national franchise firm), a firm who has repeatedly tried to hire me, and IMHO has some of the best training programs out there – he was still a very green and poorly equipped agent with very little to offer a client besides allowing them to use his MLS search system, and getting them into the door of locked homes. To be fair he is not unique – like most agent/realtor events I attend the same was true of about 80 percent of the class participants present that day who represented a cross section of all the major firms in Atlanta and the US – some of whom had been in real estate for 15 – 25+ years! Some of the real estate 101 questions asked at that stage of the game were scary!

The situation is absurd and change is needed! It’s just way too easy to get in – but it’ is not easy to make a living as most people find out – and fortunately many get out – but too many hang in and crowd the sidelines looking for a relative or friend in their “sphere of influence” to become a victim customer! Considering the size of financial transactions that a home sale or purchase represents, it is egregious to let total green rookies into the business with only a 75 hr course and unleash them on the public – but it happens every day. Even hairdressers and cosmetologists, have more educational and licensing requirements than agents who may “help” someone transact to buy or sell a $500K home!

Problem 3. Agents are independent contractors – and each one is like a mini small business – thus real estate is one of the few industries where there are no consistent standards of service – at any Brokerage! Brokers by and large because of IRS regulations regarding independent contractors, can’t tell an agents how to do their work – that would classify them as an employee, and that is a big no no. This is the very reason NO Brokerage Firm has agent standards of service. Agents are left to design and operate their business how they want to – agents at the same brokerage can provide great service, inconsistent service, or extremely poor and incompetent service!

This is why I have always cautioned buyers and sellers who are looking for an agent – that you never select an agent based on the firm they work for no matter how prestigious or large the firm may seem – not my firm Advantage Realtors, not Keller Williams, not Atlanta Fine Homes Sotheby’s – the agent firm is not a selection criteria – not when you understand how things work: It’s the Agent you hire, that will make or break your deal! The agents firm is not conducting and overseeing your transaction – the agent is – the firm is supposed to review agent paperwork for error and violations, but except to write the agent a commission check after closing, the firm doesn’t get involved at all unless serious things occur which cause a consumer or the other agent to complain – by then irreparable damage may have occurred.

Problem 4. Agents are salespersons – many people and agents themselves attribute much more importance to an agent than they deserve – agents may call themselves anything – neighborhood specialist, market expert, number 1 in sales, blah blah, etc – first and foremost 95% of agents are nothing more than salespersons – that is how they are described on their GA License. There is the inherent problem created because of the very nature of agents…of course every salespersons goal is to sell – obviously this can become a serious conflict of interest when it comes to putting the buyer or seller clients interest first – ahead of the agents making the sale and getting to closing. Too many agents push homes, push transactions, and/or don’t disclose everything they know about a transaction – especially things that may change a buyer or sellers decision process, or not be in their best interest (also a license law violation)!

Problem 5. Weak and desperate agents who are just scraping by – these financially desperate agents – especially the ones who come into contact with buyers and are so desperate for a customer they won’t even educate buyers on agency laws (a license law violation) and won’t ask a buyer to sign a Buyer Brokerage Agreement (to become a client) – in fear they may scare the buyer away! And if they do try to educate the buyer as required, but the buyer refuses to sign a Buyer Brokerage Agreement (because the buyer still doesn’t understand how to protect their own best interests), the weak agents give in an work with the buyer rather than represent them – they cease to educate the buyer further or explain why they need to represent the buyer as a client in writing as required by GA Law. If a buyer is stubborn and won’t listen to reason, any agent worth their salt will tell the buyer sorry but they are not able to help them!

This takes strength of character to do what is right – and it takes having a degree of success in your business so you can pick who you work with and who you don’t. Desperate agents don’t have success and they have no value proposition so they chase prospects rather than the other way around, and they don’t have respect, so they have prospects who don’t listen to them, and think they know more. What a miserable way to work.

Regardless, at the end of the day, as agents and Brokers, we know (or are supposed to know) the law and are supposed to be the experts, and protect the public – even if that means politely telling a prospect “because you refuse to allow me to give you my best, I simply can’t help you.” These weak and desperate agents are not good for anyone – they will agree to “work” with anyone under any circumstance, including circumstances they know to be bad for their buyer customer. They let uninformed buyers tell them how to run their business, and they pose the most danger to the public in real estate transactions. That type agent is egregious – and what the DANGER report is all about. Buyers who use this kind of agent and insist on not signing an Exclusive Buyer Brokerage Agreement, frankly share some responsibility and deserve what they get. There is too much free information on the internet about the difference between being a customer and a client and how to protect yourself as a buyer.

Of course buyers who spend all their time in the IDX ‘candy shop window’ – looking at homes, might just miss something with far more important financial benefits – learning how to find the best expert to assist and represent them, and make their life a lot easier!

Problem 6 Ubiquitous internet IDX home search portals – most agent IDX systems require log in at some point – but some agents don’t require buyers to log in ever (thinking they will get more “leads”). (What kind of “lead” do you have if the visitor did not leave a real name, email address, and number – nothing?) Are we in business to let the buyer find their home on their own, or are we here to give them direction, help them see all options, and help them find the best home, and get the best deal? If not why don’t we just give the buyer our super key so they can let themselves in too? Being facetious of course!

What these agents are really doing is giving away the store – providing a free services to members of the public who probably won’t reciprocate and have no intention of using them, services which their broker pays multi thousands a year for. (There are things in the works now [November 2015] to stop unfettered distribution of Broker listing data and information, and Brokers will regain total control over who can see listing information and who gets it – this could affect both local MLS systems and third party portals like Zillow – we will see in Q1 2016)

The result of giving a buyer the MLS rather than helping them with it, agents are helping buyers bring a lot of problems on themselves – too many buyers start the home search process completely backwards simply because they can – looking at homes first, rather than finding an expert who could set them up on a much better and more relevant and targeted search and keep them informed them about homes buyers would never find on their own. Instead some agents have taught buyers to be DIY’ers – to spend weeks and months combing the internet on their own looking at and for homes, and meanwhile they miss a lot of opportunities in the process, and take way longer than necessary to find homes. Then once these DIY buyers find a home they think they like, at the last minute they try to select an agent often in great haste, to help them move forward on the deal they found before its gone, or worse they become scared or emboldened and take it on themselves to deal directly with the builders agent or listing agent – losing thousands in the process, and who knows what else.

Problem 7. Most agents don’t have any DIFFERENTIATING value propositions and advantages – thus the vast majority of the public view agents as a commodity – they feel agents are mostly all the same and basically interchangeable (they never saw the Danger Report) – so operating under this flawed assumption too many folks pick their agent simply because they know them from church or they are the neighborhood agent, or because a friend or relative referred the agent – big, big, mistake if you don’t do your own vetting don’t blame anyone else when the wheels fall off!

Problem 8. Most of the public don’t really know how to pick the best agent. Most of the folks who do understand that agents are not the same, and that it’s unwise, even irresponsible to just pick an agent merely because they know them or someone else referred them, often don’t understand how to vet an agent – what criteria to look for and use to determine who really is the best agent…and how to avoid the 80% majority who are so unskilled and incompetent as to be irrelevant, even outright dangerous to your financial health!

Questions? Need an Expert Adviser?  Contact me – Robert Whitfield – 678-585-9691

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Homestead Exemption for North Fulton Homeowners

North Fulton Homestead Exemption

2014 North Fulton Home Buyers – be sure to file your Homestead Exemption!

If you purchased your home last year and have not already done so, file for your Homestead Exemption by the deadline (April 1 in most counties) – or you won’t get a tax break for another year! Filing a Homestead Exemption can save you thousands of dollars in property taxes! In Georgia a Homestead Exemption must be applied for by the homeowner – it is not automatic and the closing attorney does not file for you at closing. Depending on your county, this can be done online, by fax, by mail or in person – and you can file for homestead exemption year round. You only have to apply for the exemption once and the exemption remains for as long as you reside in the home as your primary residence – however, any change in the name of the homeowner requires a new filing! A Homestead Exemption provides more than just a tax break. It also provides two important protections. It prevents the forced sale of a home to meet the demands of creditors and provides the surviving spouse with shelter. Deadlines are listed below by county along with a link for a homestead application. Applications received after the deadlines will be processed the following year.

Filing for Homestead Exemption

The Homestead Exemption is available to legal residents of Georgia for their primary homes. You are entitled to the Homestead Exemption if you owned and occupied your home on January 1st of the year for which you apply. Senior citizens may have additional exemptions available – check with your county tax office.

Deadline Dates (in parenthesis)

Cherokee County (4/1): 2782 Marietta Highway, Suite 200, Canton 30114 678-493-6120 M-F 8am to 5pm http://www.cherokeega.com/Tax-Assessors-Office/

Cobb County (4/1): 736 Whitlock Avenue, Suite 100, Marietta, GA 30064 770-528-8600 M-F 8:30am to 5pm http://www.cobbtax.org/property/exemptions#BasicHomestead

Are you in the City Limits of Marietta? The City of Marietta offers homeowners certain additional Homestead Exemptions in addition to Cobb County Exemptions – see if you qualify: City of Mariettahttp://www.mariettaga.gov/city/cityhall/tax/exemptions

DeKalb County (4/1): 4380 Memorial Drive, Suite 100, Decatur, GA 30032 404-298-4000 M-F 8am to 5pm http://web.co.dekalb.ga.us/TaxCommissioner/homesteadGen.html

Douglas County (4/1): Douglas County Courthouse, 8700 Hospital Drive, Douglasville, GA 30133 770-920-7272 M-F 8am to 5pm http://www.douglastaxcommissioner.com/

Forsyth County (4/1): 110 East Main Street, Suite 260, Cumming, GA 30040 770-781-2106 M-F 8:30am to 5pm http://www.qpublic.net/ga/forsyth/homestead.html

Fulton County (4/1): *North Fulton Owners – You may be able to file at one of the Northside annex centers – please check the website for location nearest you. 141 Pryor Street SW, Suite 1047, Atlanta, GA 30303 404-730-4000 M-F 8am to 5pm http://www.qpublic.net/ga/fulton/basic_homestead.html

North Service Center                              Alpharetta Service Center
7741 Roswell Road N.E. Ste 234B          3155 Royal Drive Ste 179
Atlanta, GA 30350                                    Alpharetta, GA 30022
(8:30a.m. – 4:30 p.m.)                              (8:30a.m. – 4:30 p.m.)

Are you in one of the North Fulton city limits? Some cities offer homeowners certain Homestead Exemptions in addition to the County Exemptions:

City of Alpharetta: http://www.alpharetta.ga.us/index.php?p=102

City of Roswell: https://www.roswellgov.com/FAQ.aspx?QID=78

City of Milton: http://www.cityofmiltonga.us/index.asp?Type=B_LIST&SEC=%7BBE34635C-F9F7-4941-8BB8-E0BE09FEFBB5%7D#{5FCF7EA1-8510-48D5-A252-61B1ED9914D0}

City of Johns Creek: http://www.johnscreekga.gov/services/finance/homestead

Gwinnett County (4/1): Call for application. 75 Langley Drive, Lawrenceville, GA 30046 770-822-8800 M-F 8:30am to 5pm http://gwinnetttaxcommissioner.manatron.com/Tabs/Property/HomesteadExemption.aspx

Hall County (4/1): 2875 Browns Bridge Rd, Gainesville, GA 30504 770-531-6720 M-F 8am to 5pm http://www.hallcounty.org/depts/taxassessor/homestead_exempt_app.asp

Paulding County (4/1): 240 Constitution Boulevard, Dallas, GA 30132 770-443-7606 M-F 8am to 5pm http://www.paulding.gov/index.aspx?NID=210

Rockdale County (4/1): 969 Pine Street, Conyers, GA 30012 770-278-7600 M-F 8am to 4:30pm http://www.rockdalecounty.org/main.cfm?id=2985

Walton County (4/1): 303 South Hammond Drive, Walton County Government Building, Monroe, GA 30655 770-267-1335 M-F 8am to 5pm http://www.waltoncountytax.com/info#returns

What You Need in Order to File: A copy of the recorded warranty deed, Social Security numbers of all persons on the deed, the mortgage holder, and the amount of the mortgage. Some counties may require a copy of the closing statement (HUD 1) and proof of age for senior citizens.

If your county is not listed, please visit the Ga Dept of Revenue online at: https://etax.dor.ga.gov/ptd/county/index.aspx to find information for your county.

Mercedes Benz Relocating To Atlanta

Mercedes Benz Relocates to Atlanta

On January 6th Mercedes-Benz USA announced that it will relocate its US corporate headquarters to Atlanta, Georgia, in a move designed to better serve its growing customer base and strengthen the company’s position for long-term, sustainable growth. MBUSA executives and staff will relocate from its primary facility in Montvale, New Jersey, to a temporary facility in Atlanta’s Perimeter Center on an interim basis. Mercedes plans to begin relocating employees to Atlanta starting in July 2015. The company will construct a new, state-of-the-art headquarters expected to be completed in early 2017. Word from commercial real estate sources are that Mercedes has several sites under consideration near Sandy Springs and along the GA 400 corridor in North Fulton County. The move will affect approximately 1,000 employees now living in New Jersey, and will be phased to help minimize any disruption to business operations.

As Mercedes USA CEO Steve Cannon explains, there are a number of good reasons for the company’s relocation to Atlanta.

“Atlanta is a premier city which places us closer to our ever-growing Southeast customer base, our port in Brunswick, Georgia, and to Mercedes-Benz US International, our Alabama manufacturing facility, which accounts for half of the vehicles we sell here in the US,” Cannon said in a statement. “For our employees, Atlanta offers a strong quality of life, terrific schools and wonderful cultural and recreational opportunities.”

North Atlanta Specialty Broker, Robert Whitfield of Advantage Realtors said he has already received inquiries from several Mercedes employees who are trying to become familiar with North Atlanta’s better neighborhood options in which to establish new roots. Most families priorities are excellent schools, a reasonable commute, and nicer neighborhoods offering newer homes and good recreational amenities like pools, tennis, and even golf.

Based on the locations under consideration for Mercedes new headquarters, Marietta’s affluent East Cobb community would be an excellent location for relocating Mercedes employees to consider. East Cobb offers easy access and close proximity to the Sandy Springs and GA 400 corridor areas, along with East Cobb’s top public schools, high home value retention and excellent quality of life. Other excellent neighborhood options are Roswell, Alpharetta, and Milton in North Fulton. Like East Cobb, North Fulton offers excellent public schools, a great quality of life, and many beautiful neighborhoods. Sandy Springs and Dunwoody are other possible options, though families with children should know both have somewhat weaker public school systems and feeders than East Cobb and North Fulton communities.

Mercedes expects to provide additional detail on its relocation plans by the end of January.

Mercedes employees needing more information and unmatched relocation assistance are welcome to contact Robert Whitfield at 678-585-9691.

Alpharetta New Construction Homes – Save 50K

Alpharetta New Construction Home

New Construction – Save $50K!

Rare Opportunity for a short time – up to $50K off on Alpharetta New Construction Homes! Several to choose from in various North Fulton new home neighborhoods.

This homes stats: Brick and stone exterior, full basement, 5 bedrooms, 4 baths, 3 car garage, over 3600 square feet. Top North Fulton schools:

Crabapple Crossing Elementary School
Northwestern Middle School
Milton High School

If you want new construction in Greater North Atlanta – call Atlanta’s most qualified new construction home expert:

Robert Whitfield
Professional Buyers Broker
ICC Certified Building Inspection Expert
New Home Construction Expert
Advantage Realtors


2013 Atlanta Housing Trends

Atlanta Mortgage RatesI just got this email a few minutes ago – astonishing rates all accross the board – especially for Jumbo loans.

Every indicator is that we in the real estate world are going to have a good 2013. Home prices in the Atlanta area housing market are on the increase and inventory is lower than anytime in the last few years.

New construction activity has been the big change over the last year or so – we are seeing more now home construction activity than any time since 2006.

This is still a sensational time to buy new or existing homes, however, to avoid price increases, the sooner you can act the better. You can reach me at 678-585-9691. Robert Whitfield