Connect with us

Real Estate News

What business owners are saying about the high cost of real estate – Daily News

Published

on

My days are filled with advising entrepreneurs. As you can see, my commercial real estate practice focuses on family-run production and logistics companies in transition.

Often this transition leads to a decision about their locations. As an an example. Let’s say the company is considering a merger. When two groups become one, there is duplication of their facilities and, in some cases, overcapacity.

Our services are obliged to eliminate the excess by selling or subletting the undesired areas. Expansion into another federal state also requires a partnership with us. We are able to find vacant buildings that need a user and negotiate rental or sale transactions. A dramatic increase in orders could result in the need for a larger building.

Yes, we’ve seen this transition many times these days.

But today I want to focus on the conversations I have with entrepreneurs outside of their commercial real estate concerns. After all, small businesses are the fabric of our economy and employ a significant portion of our workforce.

In my four decades as a commercial real estate professional, I’ve never heard so much fear.

The attitude is tough. The 2020 pandemic put a lot of people on the unemployed list. To combat this, the state and federal government have created unemployment benefits, which in some cases can reach $ 1,000 a week. In addition, the period during which an unemployed person or worker on leave could receive these benefits was extended.

Hence, a worker could earn a pretty good living not working. Now that our economy is opening up again, manufacturing and logistics companies are finding it difficult to get workers back into their factories.

There is an acute shortage of available candidates for vacancies. Even before the pandemic, skilled workers were difficult to find. Those doing machining or other specialized equipment were in short supply. Now it is simply impossible to hire these experts. Additionally, our community colleges are not designed to prepare students for careers in manufacturing.

Raw material prices are exploding. Copper, petroleum, synthetic resin, building materials, lumber and steel are terribly scarce. Doubt but i say? Go to your local Home Depot and check the price for a piece of 2 × 4 lumber. You may want to bring your mortgage broker with you as a purchase could require a second mortgage on your home!

Manufacturers are being constrained at every stage, from stocking enough components to make their product, to higher wages for the people who run their machines, to higher gasoline prices that drive up shipping costs. Expect your wallet to be affected at some point.

Is the grass greener? Regardless of the size of an operation, many I’ve spoken to are considering a location outside of the state of California. But are other states really more receptive? Yes!

I have just come back from a trip to Georgia on behalf of one of our clients. They asked us to locate three facilities for them across the country – one in the west, one in the central part of the United States, and one in the east.

We have found Georgia and its individual communities are extremely receptive to the 200+ jobs our client will provide to the local economy. On the table are incentives, reductions in regulation, discounts on property taxes, simplified building permits, sales tax reductions, bonds for industrial development, employee training and tax breaks for hiring.

We were shocked at the red carpet that was rolled out for our requirements. And here I thought the red carpet was only seen at the Academy Awards. Boy was I wrong!

Overstretching the government. AB5, new AQMD requirements, minimum wage increases, noise protection and lengthy approval procedures all have an impact on the operation of a manufacturing or logistics company.

Add in some uncertainties about property taxes, long-term capital gains, the possible abolition of tax deferred exchanges, and the absolutely insane commercial real estate pricing and you get a feel for what keeps property owners up at night.

The California I remember embraced small businesses and provided a platform for success – by stepping aside. Hewlett Packard, Disney, Microsoft, Apple, and Amazon all started with a dream in a garage. Gosh, how far we’ve drifted.

Allen C. Buchanan, SIOR, is a Principal at Lee & Associates Commercial Real Estate Services, Orange. He can be reached at abuchanan@lee-associates.com or 714.564.7104.

Real Estate News

Are There Fees for Canceling a Real Estate Agent Contract?

Published

on

You did your research, found a real estate agent who you thought was right for the job, and signed an agreement for the professional to list your property. But when time goes by – and your house isn’t sold – you may be wondering: Can you terminate this real estate contract – and if so, at what cost?

In a perfect world – where we all read the fine print before we sign a legally binding document – you already know the answers to these questions because they are in the listing agreement you signed.

But this is the real world – a world where many of us sign things up in a hurry and don’t expect there to be any problems. If that’s the case for you, here’s what you need to know about terminating a listing agreement.

What is in your listing contract?

Of course, nobody can force you to sell your home, but real estate brokerage contracts are legally binding contracts.

Listing agreements vary between real estate companies, property managers, and cities and states. In general, however, they all typically include a time frame that they cover for a particular property. If the contract doesn’t include a cancellation fee, you can cancel at any time and you’ll be off the hook. However, many list a fee that will be billed to the seller if the contract is canceled before that expiration date.

The fee often covers the agent’s time and expense. This may include the costs incurred by the agent to have your property listed on the multiple listing service in your area, as well as forms, photos, videos, brochures, and other means of promoting your home. In some cases, the fee is a percentage of the list price.

If there are any fees, you can always wait for the contract to be completed to avoid the possibility of having to pay them. In many cases, however, even if you cancel early, you can make arrangements with your real estate agent.

“If you quit early, chances are the broker will let you off the hook for the rest of the contract – at least most of us – especially if the homeowner requests that termination,” says Maria Jeantet is a real estate agent at Coldwell Banker C&C Properties in Redding, CA. “It all depends on what you do when you tell them you want to cancel.”

Reasons for terminating a listing agreement – and alternatives

The reasons why people want to terminate a listing contract vary. If you’ve decided not to sell your property after all, that’s one thing. But if you want to cancel the listing because you’re not happy with your agent’s advertising, or disappointed that they’re not getting as many views or offers as you hoped, that’s another matter. The latter can often be worked out with your agent through clear communication about what you are dissatisfied with and what changes you would like to see.

Jeantet says it’s best to always be direct with your agent.

“Keep it clean. Either speak heart-to-heart to your current agent about the resignation or talk to them about getting more out of their service for you,” she says.

If this is not effective, you can also consider contacting a broker’s brokerage firm (if your broker is not the broker / owner) to discuss the issues and possibly reassign a different agent.

If nothing can be resolved, it may be in your best interest to cancel, even if you have to pay a fee.

Make sure you get the cancellation in writing because if you are listing your home with a new agent within the time period covered by the listing agreement and there is no written cancellation from your current agent, your current agent may charge commission fees to sell the home. Look back at your listing agreement to see what it says.

Not all real estate relationships work, people change their minds, and circumstances change. This is why it is so important to do your research when it comes to choosing a real estate agent and carefully examine what is in a listing agreement before signing it.

The post Are there any fees for canceling a brokerage agreement? first appeared on Real Estate News & Insights | realtor.com®.

Continue Reading

Real Estate News

What Community Associations Should Know From HOA Attorneys – Real Estate and Construction

Published

on

Servicing, repairs, upkeep and rule enforcement include for a. daily business Community association – now one of the most common forms of housing in North Carolina.

To date, nearly 27% of the state’s population lives in some type of single family home, townhouse, or condominium managed by a homeowners association known as an HOA.

With its explosive growth and abundance of housing options, from affordable new homes to multi-million dollar neighborhoods, the Triangle has become a hotbed for these types of planned communities. In response, the company recently announced a dedicated team to assist new and established boards of directors and managers of associations in Raleigh, Durham, Chapel Hill and the surrounding area in addressing the challenges of running an HOA.

The Triangle Team consists of litigation attorneys Amy Wooten, Lawyer for business and community associations Madeline Lipe, Real Estate Lawyer James Toddand creditor attorney Thomas Wolff. Each has a unique perspective to serve and guide a community organization at all stages of development and through all kinds of disputes and conflicts.

I recently asked my colleagues to share the most important things about HOAs. This is what they had to say:

“I would say that risk management is one of the most important things that community associations need to know and appreciate!”

Amy Wooten, Litigator

It is vital that community associations take a proactive approach to managing risks that they may face for many reasons. One of these reasons is that proactive risk management can reduce the likelihood of litigation against a community association or enable the community association to defend itself in the event of a legal dispute. It can also better enable a community association to cope with the financial difficulties and other stressors that often arise when a community association finds itself in a situation where it is the party to litigate. In short, an association’s risk management strategy should include seeking legal advice and advice early on when a potential dispute or legal problem arises. This requires the community association to invest in legal fees. In my experience, however, these dollars are mostly well spent. Whereas, skipping this investment, among other negative consequences, will result in community associations incurring significant legal fees that could be avoided or significantly reduced if they had been proactive in finding an attorney.

“When it comes to a community union question, the starting point is almost always the same … start with the administrative papers.”

Madeline Lipe, Lawyer for business and community associations

The relevant documents of a community association (declaration, statutes and statutes) form the basis for understanding the role of the community association. The purposes of the community association are set forth in its administrative documents which, along with the applicable North Carolina bylaws, outline the association’s responsibilities, define the rights and obligations of owners, and generally set the framework of the community. Accordingly, it is important to know what is in the relevant documents so that the powers, duties and limits of the association are understood.

“Community associations are empowered, governed, and constrained by the real estate contracts that create their communities.”

James Todd, Real estate attorney

It is important that ward associations understand the authority and limits of their covenants. We often come across church associations that “for as long as everyone can remember” have been operating in a certain way without understanding why. We can help analyze and change the covenants – whether it be a review of decades-old covenants that do not meet the current needs of the fellowship, or proposed changes to bring the covenants into line with longstanding practice. A community association’s covenants are the framework in which it operates – we can help ensure that this framework meets the needs of your community association. “

“One of the most important things to keep in mind when dealing with overdue accounts is taking action early and being consistent in enforcing a homeowner’s payment obligations.”

Thomas Wolff, Attorney for creditors’ rights

Homeowners can find it much easier to pay off their arrears when they are still manageable and relatively small. Contacting them early and being ready to work out an appropriate payment plan can help prevent major problems before they arise. However, there will always be accounts that can prove to be disruptive and ultimately require legal help. In these cases, it is still important to contact the association’s legal advisor to take swift action to maintain the repayment claim and mortgage the defaulting homeowner’s property. In most cases, the lien covers not only the overdue reports, interest and other charges but also the legal fees of the association. Acting quickly helps the association to achieve an optimal repayment position and makes the growing debt difficult for the homeowner to overlook – especially if he wants to sell or refinance his property. By acting early and dealing consistently with overdue accounts, an association can help increase its chances of recovery.

Not every community association conflict may need an attorney, but having qualified legal representation can go a long way towards ensuring the health and peace of your HOA. Our triangle team, supported by our full service, nationwide Practice of community associations, is ready to support your community association.

The content of this article is intended to provide general guidance on the subject. You should seek expert advice regarding your specific circumstances.

Continue Reading

Real Estate News

Cushman & Wakefield Echinox Adopts Yardi to Manage Commercial Real Estate Portfolio

Published

on

The independent and operated subsidiary of Cushman & Wakefield will use fully connected cloud-based software to manage commercial real estate

AMSTERDAM, June 22, 2021 / PRNewswire / – Cushman & Wakefield Echinox, a leading real estate company in the Romanian market, has selected Yardi® as its technology partner for commercial property management in. elected Romania. The platform will offer investors, developers, owners and tenants a full range of services. Cushman & Wakefield Echinox manages around 50,000 square feet of office buildings in Bucharest.

Cushman & Wakefield Echinox launched Yardi® Voyager Commercial to streamline property and financial management. Yardi Voyager combines real estate management and accounting with property, finance, budgets, forecasting, construction and maintenance and offers a holistic view of an entire commercial real estate portfolio.

“We chose Yardi Yoyager Commercial as an integrated platform for real estate, finance and ancillary cost management, tenant settlement, accounts receivable, accounts payable and budgeting. Yardi gives us the ability to provide improved access to data, which will improve the quality of reporting to our customers and will help us meet our growth goals, “said Mihaela Petruescu, Partner Asset Services Cushman & Wakefield Echinox.

“We are excited to have Cushman & Wakefield Echinox as our newest customer in Romania, “said Neal Gemassemer, Vice President for International at Yardi. “We look forward to working with Mihaela and her asset services team as their passion for exceeding customer expectations and their experience guarantee adaptable customer-centric solutions.”

Learn more about how Yardi supports real estate and property management clients in all areas Europe.

About Cushman & Wakefield Echinox

Cushman & Wakefield Echinox is a leading real estate consultancy in the local market and the exclusive subsidiary of Cushman & Wakefield infield Romania, owned and operated independently, with a team of over 60 professionals and employees offering a full range of services to investors, developers, landlords and tenants. You can find more information at www.cendunginox.com

About Cushman & Wakefield

Cushman & Wakefield is one of the world’s leading providers of commercial real estate services with 50,000 employees in over 60 countries and a turnover of 7.8 billion euros. More information is available at www.cushmanwakefield.com

About Yardi

Yardi® develops and supports industry-leading investment and real estate management software for all types and sizes of real estate companies. Yardi was founded in 1984 and is based in Santa Barbara, California.and serves customers worldwide from offices in Australia, Asia, the middle East, Europe, and North America. Visit Yardi.com/EU for more information.

https://mma.prnewswire.com/media/737275/Yardi_Logo.jpg

SOURCE Yardi

Continue Reading
Advertisement

Trending