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        <title>Seaport Advisory</title>
        <link>https://www.seaportre.com/blog/tags/due-diligence/</link>
        <description>Data-driven real estate insights, valuation, and strategy across Southeastern CT and Southern RI. Research-backed guidance for buyers, sellers, and investors.</description>
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    <guid>https://www.seaportre.com/blog/ethical-real-estate-practices-lessons-from-the-mv-realty-lawsuit-and-the-importance-of-due-diligence.html</guid>
    <link>https://www.seaportre.com/blog/ethical-real-estate-practices-lessons-from-the-mv-realty-lawsuit-and-the-importance-of-due-diligence.html</link>
        <author>tbray@seaportre.com (Tim Bray)</author>
        <title>Ethical Real Estate Practices: Lessons from the MV Realty Lawsuit and the Importance of Due Diligence</title>
    <description> <![CDATA[ 



In real estate, the ethical standards we uphold not only define our business practices but also cultivate the trust we establish with our clients. The recent legal challenges faced by MV Realty in Florida highlight crucial aspects of transparency and fairness in real estate transactions. This blog post explores the implications of the MV Realty lawsuit for the industry and underscores the critical role of due diligence in protecting both agents and homeowners.


The MV Realty Case: An Overview MV Realty, known for its unique homeowner benefit agreements, is embroiled in a lawsuit filed by the Florida Attorney General. The company is accused of deceptive practices by securing 40-year contracts with homeowners that require a 3 commission from any future sale, backed by a lien-like memorandum. These agreements, exchanged for an upfront cash payment, raise significant ethical and legal concerns about transparency and the long-term financial implications for homeowners.


Ethical Concerns and the Need for Due Diligence The allegations against MV Realty bring to light several ethical issues:




Transparency and Full Disclosure: It appears homeowners were not fully informed about the long-term impact and the nature of the liens on their properties.


Equity and Fairness: The lengthy terms of these agreements potentially bind homeowners and their heirs under unfavorable conditions for decades.


Targeting Vulnerable Groups: The practice of approaching seniors and individuals with limited English proficiency suggests potential exploitation.




These concerns stress the necessity for real estate agents to conduct thorough due diligence before entering into any agreements. Here’s why it’s crucial:


Importance of Due Diligence in Real Estate




Protection Against Surprises: Due diligence, including a comprehensive search of town records for any existing liens, ensures that all parties are aware of any encumbrances that could affect the sale or ownership of the property.


Maintaining Professional Integrity: Agents who perform thorough due diligence demonstrate professionalism and adherence to ethical standards, which are critical for maintaining trust with clients.


Legal and Financial Security: Understanding the full legal context of a property helps prevent future disputes and financial losses, protecting both the homeowner and the agent.




Our Commitment at Seaport Real Estate Services At Seaport Real Estate Services, we place a high value on ethical practices and thorough due diligence. Before signing any listing agreements, our agents are trained to:




Verify Property Details: This includes a meticulous review of town hall records to identify any existing liens or legal issues associated with the property.


Educate Homeowners: We ensure that homeowners are fully informed about the implications of any liens and the terms of potential agreements they enter into.


Advocate for Transparency: Our agents prioritize clear and honest communication, ensuring that all contractual terms are understood and agreed upon by all parties.




The legal challenges faced by MV Realty serve as a critical reminder of the importance of ethical practices in real estate. By committing to rigorous due diligence and advocating for transparency, we can protect the interests of homeowners and maintain the integrity of our industry. At Seaport Real Estate Services, we are dedicated to guiding our clients through the complexities of real estate transactions with professionalism and ethical responsibility.


As we move forward, let us reaffirm our commitment to these principles, ensuring that every transaction we handle not only meets but exceeds the highest standards of fairness and ethical practice. We invite our clients and colleagues to join us in this commitment, fostering a real estate environment that respects and protects the interests of all parties involved.
 ]]> </description>
    <pubDate>Fri, 19 Apr 2024 05:29:00 -0400</pubDate>
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    <guid>https://www.seaportre.com/blog/should-the-grey-water-from-washing-machines-be-expelled-into-the-septic-system.html</guid>
    <link>https://www.seaportre.com/blog/should-the-grey-water-from-washing-machines-be-expelled-into-the-septic-system.html</link>
        <author>tbray@seaportre.com (Tim Bray)</author>
        <title>Should the Grey Water from Washing Machines be expelled into the Septic System?</title>
    <description> <![CDATA[ 



Professionals in the real estate industry often face complex issues involving regulations and guidelines that impact their clients' properties. One such issue is the disposal of wastewater from washing machines into septic systems. To ensure the best outcomes for clients, real estate professionals must conduct thorough due diligence and vet the sources of information they rely on. The case of Tim Bray, broker/owner of Seaport Real Estate Services, highlights the importance of obtaining accurate information from reliable sources, especially when dealing with matters that can have significant consequences for homeowners.



Due diligence is the process of gathering and analyzing information to make informed decisions. This often involves researching and verifying regulations, guidelines, and practices that may affect property transactions in the real estate industry. This process is essential to protect clients' interests, as it helps professionals identify potential problems or conflicts and develop appropriate solutions. 


In Tim Bray's case, inconsistencies between home inspectors, septic installers, and septic inspectors regarding the expelling of wastewater from washing machines into septic systems prompted his inquiry to Uncas Health. By doing his due diligence, Tim ensured that he and his clients could make informed decisions and comply with all applicable regulations.



When seeking guidance on rules and regulations, it's crucial to vet the sources of information to ensure accuracy and credibility. Parties vested in a specific outcome may provide biased or incomplete information. For instance, septic companies recommending the installation of a separate dry well might have a conflict of interest if they also offer installation services. 


By turning to an authoritative source, such as Uncas Health, Tim Bray was able to obtain a clear and unbiased explanation of the regulations surrounding wastewater disposal from washing machines. The response highlighted the Connecticut Public Health Code's position on the issue and the potential for variations in local regulations.


 The real estate industry is rife with complexities, and professionals must navigate these challenges on behalf of their clients. Conducting thorough due diligence and vetting information sources is critical to ensure that accurate and unbiased information guides decision-making processes. By doing so, real estate professionals like Tim Bray can safeguard their clients' interests and ensure compliance with all applicable rules and regulations.
 ]]> </description>
    <pubDate>Wed, 19 Apr 2023 05:21:00 -0400</pubDate>
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    <guid>https://www.seaportre.com/blog/how-real-estate-agents-can-do-more-for-their-clients.html</guid>
    <link>https://www.seaportre.com/blog/how-real-estate-agents-can-do-more-for-their-clients.html</link>
        <author>rhr11@icloud.com (Robert Ruth)</author>
        <title>How Real Estate Agents Can Do More for Their Clients </title>
    <description> <![CDATA[ 




Do More.


Do Better.


No Excuses.


I saw this somewhere today, while working, either online or on tv. I don’t recall where I saw it, only that I did not forget it. These 6 words seem to express the desire of every individual at the start of a New Year. They point to our dissatisfaction with the status quo and our desire to achieve no matter what the cost. The unrelenting desire to have, do, and be more is what is at work here. But in reality, having it all and doing it all doesn’t mean you will be it all. Not by a long shot.


“With all thy getting, get understanding.”


In the business world, the goal is constant growth and improvement. 






Grow the business. 






Reduce expenses. 






Increase revenue. 






Beat last year’s figures.






Be the first to adopt some new technology. 






Make this region stands out from all the others. 






Make sure you score high on customer surveys. 






Every year businesses strategize on these topics, employing experts to research and codify past results and come up with a plan of action that will help the company or division achieve more.  The corporate achievement/improvement sector is a growth industry all by itself. Billions of dollars are wagered by industry participants looking to find the next great thing to help them move their businesses to the next level.  


And the Real Estate industry is one of the biggest at spending money to increase results. In fact, the marketplace has been inundated by gurus who speak at conferences and try to sell agents on a certain process to follow in order to be successful or certain hacks to implement that will move their businesses to the next level. The implication is that by adhering to a certain route, advocated by some “expert”.


Realtors will find success in all their endeavors. These range from simple processes like personal marketing strategies to outlandish ones like letting the home sellers dictate the price to list their property at and then pressuring the sellers to reduce it by a certain percentage on a monthly basis until the home is sold.     


And that is too bad because often the best way to grow your business, increase your revenue, lower expenses, and achieve a high level of customer satisfaction is not to seek to do more business but to strive to do more with the business you have. 


Imagine if a Realtor or Mortgage Banker re-oriented themselves away from the idea of beating last year’s figures, and focused instead on improving the quality of service they delivered to their existing clients. If they chose not to focus on how to get 1, 2, or 3 more deals a week, month, or quarter, but decided to check in with 1-3 of their clients every week, month or quarter and see how they are doing. Not to solicit business or referrals from the client but to check with them and see if their house or mortgage is still meeting their needs as it was when you first did business together with them.  


In the movie “Jerry McGuire”, Tom Cruise, as Jerry, asks Rod Tidwell, played by Cuba Gooding Jr, to “help me to help you”. The idea being that together they can solve the problems they are facing, some by compromise, some by backing down from a certain stance or position, and some by trying a different approach. Only through a collaborative effort can the problems they face be addressed, and solutions found. 


To follow up with the client in a very compelling fashion, seeking to make them better off than when you did business together in the first place is the essence of having a relationship, and being a fiduciary. 






In our harried, stressed-out world, we have become fixated on getting the next deal, rather than making sure we’re getting our clients the best deal.  






It’s a choice between 2 opposing strategies: to serve yourself or to selflessly serve others.




















  Robert H. Ruth, Senior Mortgage Banker  NMLS ID: 513243  Direct: 401.789.4441 | Mobile: 401.743.4364  Email: rhr11@icloud.com








 
 ]]> </description>
    <pubDate>Wed, 04 Jan 2023 12:04:00 -0500</pubDate>
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    <guid>https://www.seaportre.com/blog/show-your-work.html</guid>
    <link>https://www.seaportre.com/blog/show-your-work.html</link>
        <title>SHOW YOUR WORK</title>
    <description> <![CDATA[ 
SHOW YOUR WORK 


By Buddy Kane


 





 


 


Got a call last week from a past client interested in selling one of his properties. Having dealt with him previously, I was well versed in his fly by knight style and approach. Upon fielding his inquiry, I listened with an experienced awareness, knowing what cues to look for that would help me cut through an extended dialogue and boil it down to exactly what it was he wanted from me. What ensued from this point was an opportunity to apply an evolving philosophy I’ve learned the hard way over a longer period of time.


First, some background to provide context. Looking back on my student years, school was not my finest hour, aside from some extra-curriculars. Academics was never a strong suit of mine. Lotta D’s…


Like most mediocre high school students, I resorted to lazier, more desperate measures to get me through. But my efforts in the form of guessing, getting a copy of the test in advance, or cheating off the girl next to me never helped if I had to show my work, how I actually arrived at my answers. Amazingly, teachers wouldn’t accept that I did all the work in my head…


The message was clear: “No Ticky, No Laundry…” More D’s….


Now, if I had it to do over I wouldn’t trade the struggle, only the amount of time it took me to achieve the same results I could have gotten if I did almost nothing and refocused my efforts on more productive pursuits. Time became the traded currency. I could spend it where and how I chose.  I lacked traceable results.


This was reflected in my overall performance. I remember it all too well, as it usually ended badly for me. Unless, I could better understand where and how to invest my time. It’s a moving target for all of us.


Looking back, who knew that taking shortcuts and cutting corners wasn’t the way to go?


The choice was clear: Continue to just trade time for money, or begin buying more meaningful time with the same capital.


The voice in the back of my head still smacks me around whenever I feel compelled to mail it in, hoping for the best. Better off just doing something else altogether than half-assing it. The voice of reason that tells me to abort certain missions is now unmistakable.


Its amusing to me that this is how a large portion of the world still operates, wagering on hope and luck. We can all use some luck at times but luck alone is not a strategy.


 


Exhibit A: 


Back to the client conversation previously mentioned. Upon receiving his proposal, I responded with a list of questions needed to determine a projected market value of the property regarding its highest and best use, zoning restrictions, building dimensions, cost to construct, forecasted revenues/expenditures, and a host of other details that would only serve to bore you further at this point, but critical to the first steps of an effective Marketing --- and Sales process.


This isn’t some code of conduct I’m spearheading. Far from it. If anything I’d rather push the limits of “accepted” conduct. It’s a conscious choice that increases the chances of consummating a deal and avoids wasting anyone's time, mostly my own. It’s done to accurately and effectively market the property to prospective Buyers, presented in a way that speaks directly to their bottom line, creating a match with the Seller. This is the beauty of commercial real estate. Its business, the numbers work or they don’t. The emotional influence commonly witnessed in residential real estate is mostly checked at the door. The endgame here is the ability to orchestrate deals that come together and actually close. Many commercial deals often crumble in the 11th hour due to a lack of proactive due diligence performed in advance.


Because of this, the real Marketing is the numbers. Its the analyses. The pretty pictures, flowery language and facebook posts of residential brokerage are great, but that’s only the beginning. This alone won’t get you to 1st base. That’s just posturing. Anybody can do that. The most effective marketing aggressively educates in a way that triggers actionable means, providing a sketched framework investors are motivated to acquire. Real Marketing is the setup, paving the way to a Sale. They work in tandem. It’s John Wetteland and Mariano Rivera in ‘96.


Answers to the questions I submitted to the seller were engineered to execute this very brand of marketing campaign, crafted to solidify the ultimate transfer of title. By showing our work up front, we could attract qualified and educated investors in a calculated process capable of producing timely results.


My assignment was simple: Get the necessary intel, do the homework up front, or pass on the deal.


This approach will sound crazy to most agents, given the depleted levels of inventory and revenue shortfalls at this time. Many will take whatever “listings” they can get at this point and roll the dice at the behest of their clients. But the lesson here to me is simple: invest time and energy in areas that get all parties paid, rather than just staying “busy”, incurring sunk costs and expenses in the process.  


In the meantime, line up a side hustle stream of income and insulate yourself from chasing deals that will never close, draining you of your time, energy, resources and sanity.


Alas, answers to my questions would never arrive. True to form, I was notified the seller had no interest in answering the stated questions, only to list the property for a multiple amount of what he paid for it. His logic citing the “market being hot”.


In the end, what he wanted was to “test” the market, and wanted me to do it for him, divorced from any tangible chances of sale. A mighty sweet offer…


I followed up the next day to hear it from him directly. No answer.


I left him a message. No response.


I hope he’s well....  


 -Buddy Kane





  
 ]]> </description>
    <pubDate>Fri, 29 Apr 2022 11:20:00 -0400</pubDate>
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