Brian R Kelly

Tag: Brian R Kelly

  • Episode 3 – Current Market Challenges

    Episode 3 – Current Market Challenges

    Welcome to “Unleash Your Legacy” with Brian R. Kelly, Real Estate Broker. Building a community of leaders …growing their impact….  through the filter of God, Family, Work, and Ministry. This month, Brian has a guest for this episode, eXp, and Premiere Group colleague realtor, Jane Armstrong, who has been in the business for 27 years and holds licenses in multiple states. In this episode, Brian and Jane discuss the challenges of today in market leads, listings, and culture and how setbacks can be dealt with in a positive manner. They also discuss how they, as Mega Icon Leaders, support their agents as they manage these challenges, which could be potential setbacks for them. www.brianrkelly.com. Produced by Blazing Kiss Media.

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  • Episode 2 – Setbacks & Challenges

    Episode 2 – Setbacks & Challenges

    Welcome to Unleash Your Legacy with Brian R. Kelly, Real Estate Broker.  Building a community of leaders …growing their impact….  through the filter of God, Family, Work, and Ministry.  Based in Chattanooga, TN, Brian is part of the Premiere Group of eXp Realty. In this episode, Brian talks about some of the setbacks that he had over the years that have helped shape him and led him on the path to where he is today. Setbacks and sometimes failures can be beneficial when you can learn from them. Having a coach like Brian can help you in your career because you can learn from his experiences. www.brianrkelly.com. Produced by Blazing Kiss Media.

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  • What Would You Tell Your Younger Self?

    What would you tell your younger self? This is a frequently asked question of Entre Leadership podcasts from Dave Ramsey. It is a super question. I sometimes think if I could go back in time and have coffee with young Brian. What would I tell him? Here are a few topics:

    1. Turn to God frequently and for little things. Early in my adulthood, I thought my Maker wanted me to handle as much as I could on my own and rely on Him for the big important stuff. Wow… was I wrong on that one. God is into the details.Young Ross Man

    2. Embrace asking others for help. Learn to receive it. Slow down and ask for help.

    3. Invest in counseling early. You think you are only sporting a carry on. There are a few trunks of crap you ain’t seeing yet.

    4. Take more time with your beautiful wife. Shut up, face her, look her in the eyes and listen.

    5. Keep a journal daily and don’t give excuses about why you couldn’t do it. You need to find your heart.

    6. Be intentional about spending time with a few guys. Maybe take up golf earlier or play in a band, or camp/hike.

    7. Spend more time with your children when they are little and do not think that your work is so important. It isn’t.

    That is a good start to the coffee conversation… Oh, and one more thing Brian… wait one year before you sell your house in Franklin, TN. The value will nearly double. Oh… and yet just one more thing… buy some Apple stock. The brand will be stronger than Coca-Cola by 2013.

    What would you tell your younger self?

  • What is a Broker's Price Opinion?

    What is a Broker’s Price Opinion? Simply stated it is the opinion of a licensed real estate agent of the most likely sales price (value) of real property. The National Association of Realtors states a Broker’s Price Opinion (BPO) should contain 7 things in writing. They are as follows:

    1. The identity of a subject property
    2. The date of the opinion
    3. A defined price or value
    4. Limiting conditions (Statement of Purpose and Intended Users)
    5. Any interest of the agent including Agency Relationship to Owner
    6. Basis for Opinion and sources of Information
    7. If not an Appraisal by licensed Appraiser then state the fact

    On a practical level, number 3 is the most important. So, what determines a good value?

    Ever watch Antiques Road Show? People are so surprised or sad when the “expert” tells them the value of their heirloom. One common theme I hear from the evaluator is “in recent auctions, similar items sold for $3,500”. They are referencing what someone else was willing to pay for a like item.

    The same concept applies to homes. Recently sold properties (last 3 months) of nearby comparable properties provide best indicator of value. Value is so deceptive relative to square footage, floor plans, construction, and land. A good agent will make many adjustments for differences.

    Another factor I consider are the comparable homes that did not sell. Failures can bring out features the market is rejecting.

    I was with a seller today who knew what the adjacent homes sold for. She was curious why I did not give the same value to her home. Her home did not have re-finished hardwood throughout, or tile in bathroom, etc. Her home was roughly the same overall size but on 2 floors instead of one. All of these factors must be considered in the equation.

    Is a Broker’s Price Opinion (BPO) the same as an appraisal? No, it is not. An appraisal is made by a licensed professional Appraiser. Although they also look at recently sold properties, they are also looking at replacement construction value and perhaps income as well if investment property. Appraisals have specific formats generally for the benefit of lenders. Appraisals are great tools. BPO’s are great tools as well, because they will pick up on many subtle details that pertain to the current “buying public”. As an example… appraisers generally do not affect value based on aesthetics like colors, etc. Realtors are sensitive to those things because we listen to buyers constantly giving feedback. Realtors know that a seller’s specially decorated walls may only reach a small amount of buyers’s tastes.

    The best way to determine the most accurate value of a property is to hold a well advertised absolute auction. That will bring out the competition to level the marketing playing field. Most people are not comfortable with that approach, because the buyers may not think so highly of your place as you do. So the next best thing is to ask a Realtor for a BPO or broker’s price opinion. What is a Broker’s Price Opinion? The best professional determination of what your house is worth.

  • Buyer's Agent or Listing Agent? Which One Do You Want To Be?

    Buyer’s Agent or Listing Agent? Which One Do You Want To Be?

    Real estate is a service business. The consumer wants service during evenings and weekends. That is the most convenient time for buyers. Sellers have a need to relocate. They need a consistent campaign. So how do Realtors focus and choose which of the two main areas to work on?

    A listing agent is a more traditional path to Realtor success in the long run. Realtors like this path for the following reasons:

    1. More structured schedule. You set the plan with the seller when you call for feedback. You schedule Open Houses and marketing events.
    2. Marketing yourself is a self perpetuating machine for additional listings down the road.
    3. You will be good at marketing to your fellow professional as well. You will need their buyers.

    A selling agent serves the buyer. Here are characteristics of a good buying agent’s business.

    1. The buyer is more demanding of your schedule. The Doctor that is coming into town and may or may not get the job wants to see 10 houses over the weekend. You gladly do this because your contact will continue to send you referrals and one will get the job.

    2. There is generally less overhead associated with advertising expenses with this model. (As a general rule)… Note : I have seen some buyer agents (with sophisticated marketing campaigns) who have spent big bucks to find steady streams of buyers.

    3. You see lots of inventory and know your negotiating skills. You also have formulated good questions to ask everyone.

    Of course there is a balanced approach and do both. My experience has been that people tend to choose one route more than another.

    As an overall observation, I would say that Buyer’s Agents tend to be savvy negotiators, frugal, and generous with their time.
    Listing agents tend to be more promotional, marketing driven animals.

    Buyer’s Agent or Listing Agent? Which One Do You Want To Be?

  • Real Estate Investor's Chattanooga House Disappears Suddenly

    Real estate investor’s Chattanooga house disappears suddenly. The house was lost forever but the land remained. Let me tell the story from the beginning.

    An investor came into my office (circa 2004) rather exited and said “the house I bought is gone!” This statement is not the usual way a broker starts his day. I invited him in to discuss the case of the missing dwelling. He started his story from the top…

    I went into this house which was in rough shape close to downtown Chattanooga. There was bad damage to parts of the structure,but it was not too much for my construction crew. I planned to repair the place within weeks and rent it out. The electricity was on, I made assumptions that it had been lived in recently.

    “A reasonable plan, although thorough inspections are best”, I said. “Continue”

    The investor said, “A carpenter I was planning on hiring lived down the road. He called me and said “I thought you were hiring me to work on the house down the street?” …”I am ” he told the carpenter. “Then why is a bulldozer and loader taking the place down?” “%#$%(12***”,,,I don’t know! .. was the owner’s reply.

    Confronting the workers, the owner found out the City of Chattanooga had condemned the property. The tear down had been scheduled for months. Even prior to his purchasing the property.

    Not only did the City tear down the building, they sent him a bill for the cleanup and disposal.

    After digging into the details, we found out several facts. The seller lived in another state. He had a received the notice of condemnation and hatched a plan of deception. He took down any of the condemnation notices, spruced up the property a bit and put it up for sale with a Realtor. His master act of cover up was bribing someone to get electricity to a property that had been condemned.

    How did the property transfer with a title search and insurance? Turns out that condemnation, at the time this happened, is not recorded at the courthouse. There are no recorded liens or encumbrances placed on the property for a condemnation action. The seller acted fraudently. The seller had not lived in the property; therefore, was exempt from filling out the long form of the Tennessee Property Disclosure.

    The investor could have sued the seller and the agency representing him. He chose not to pursue that action because of the expense and time to win.

    Moral of the story? Always dig to find out as much as you can about a property. A “great” visible deal may turn out to be like this real estate investor’s Chattanooga house suddenly disappearing.

  • Smart Chattanooga Home Buyers Purchase Boundary Surveys

    Smart Chattanooga home buyers purchase boundary surveys. Surveys are great tools. They are great representations of “real property”. What is a real property or boundary survey? It is a legal document…here is a definition from LegalMatch.com. I am not a surveyor. So I am not qualified to speak to the merits of different types. I do know that some lenders require a “mortgage” survey or I have heard it called a “windshield” survey. That type of survey does not require corner markers. It’s primary function is to protect the lender and insure that an improvement actually does exist on the land that is being conveyed.

    The buyers that I have the most professional respect for always purchase a boundary survey that requires markers. The most savvy have the title insurance exception for surveys removed. A couple of stories to help explain:

    Early in my sales career, I sold an older home on Signal Mountain to a developer/builder. The home was for his personal use and not development. It was a turn of the century model and perhaps just over an acre of land. The home had traded about 5 or 6 times. He made a condition of the purchase and inspection a full boundary survey with markers. This was somewhat new to me and I asked him why. He said there are so many easements, variances, closed roadbeds, etc. that he ALAWYS purchased a boundary survey prior to closing. This was not a lender requirement. When the survey was done it showed the driveway of the neighboring property actually ran over the lot line 20 to 30 feet. The driveway was not asphalt or concrete but pea gravel. It turned out the previous owner allowed access across the property so they could save a tree. The agreement was never made in writing. When we went to closing, the survey was presented with language to the affect of “This survey is for the Benefit of Acme Title Underwriter, Acme2 Title Company, Acme 3 Lender and Dave Developer.” This way the title insurance policy will cover you in case of a boundary dispute. **(Important Note: Always ask the closer or closing attorney what are the “Exceptions” on your Title Insurance policy).

    Another example of wise survey use was in a new subdivision. A concrete driveway was shown on a boundary survey drawing to encroach 3 feet onto the adjacent lot. The loan could not be made on the property until this was corrected. The correction was made through a boundary line agreement by both owners and the “line” was moved instead of the concrete driveway. The outcome would have been different if the adjacent owner wanted more big money for the 3 feet. The not so “minor” issue in this case was no sale would happen until problem resolved.

    TVA or Tennessee Valley Authority has many power lines running through the Chattanooga Valley. The high voltage lines have restrictive easements deep into property lines. You may not be able to get a permit to build a deck or the addition to your home because of these power easements. Surveys should also show buried easements such as gas and sewer lines. It would be a sad day if your man cave garage would have to come down because you find out it sits on a utility easement that needs repair.

    Country farm land, city slicker lot. (fences, pools, buildings, utilities, closed road beds, easements) Smart Chattanooga home buyers purchase boundary surveys.

  • Young Home Buyers Are Wise

    Young home buyers are wise. I am encouraged about our future because I have worked with young people buying homes. All three couples that I worked with are hard working and using good common sense. They are looking at the following things:

    1. Their budget and not going “house poor”
    2. Deals – 2 bought foreclosures, 1 bought an estate sale
    3. Fix-up – All three were willing to jump in and repair
    4. Location – Each purchased in areas close for commute and good potential future equity growth
    5. Asked for help from friends, family and pros

    The first young newlywed couple set up a long term rental situation with their parents. The parents purchased a HUD foreclosure and the adult children helped make repairs and set up a lease purchase plan between them.

    The second couple purchased an estate sale. The house was cosmetically challenged because a lifetime smoker stained the sheetrock walls with cigarette smoke. They jumped in and worked on the house before they moved in. Yet, another wise move. I will never forget the first home that Dee and I purchased in Franklin, TN. We put the bed under the dining room chandelier because I was “working” on the hardwood floors in the bedrooms. “Piece of cake”, “It’ll be done in a week” For the next few months I woke up in the morning and hit my head on the glass pieces of the dining room fixture. Dee would glare from under the covers each time.

    The third couple purchased a one level ranch that was smaller than most all the rest in the neighborhood. They had the luxury of having a parent who is a professional handyman. They actually moved some doors and walls to make good floor plan changes. I am looking forward to seeing what they have accomplished.

    I am encouraged that our young people are making good decisions. I am happy to serve them and give them some pointers from my perspective as Realtor. After all, they may be calling me soon and asking for help in selling their house. I want them in the best possible position to gain from their investment. I am glad that young home buyers are wise.

  • I Didn't Mean To Be A Real Estate Agent

    I Didn't Mean To Be A Real Estate Agent
    I want to be an astronaut
    I didn’t mean to be a real estate agent. It just seemed to happen to me. Here’s my version of the story.

    In first grade at Thrasher Elementary in the 70s, I had three occupation choices, 1. Policeman, 2. Fireman, or 3. Astronaut. My decision at the time was Astronaut. I remember watching Neil Armstrong step on the moon in 1969. We are at my grand parents house. Wow, just think, travel to outer space and drink unlimited Tang drinks! Our principal, Mr. Wheeler, did his level best to encourage us to consider the Navy. I must admit it was never a temptation. There was not much water around our home. Tennessee has plenty of trees. Acorns make great ammunition in yard battles – if Military I was going Army. (funny how future events unfold)

    Going through school, I changed my aspiration from Astronaut to fighter pilot. Not only was that really cool, it seemed a bit more practical. Dad encouraged me to get a military scholarship. I did win a scholarship, but alas my near sightedness was a handicap for flying, so I chose the Army. (Acorn experience comes in handy).

    I took the Army scholarship to Vanderbilt University in Nashville, TN. By this time I was thinking businessman or preacher. I decided to take the technical business route believing that God needed Christians in the computer field.

    I wrestled a computer science degree from Vandy’s Engineering School. When I finished in 1986, I was faced with a choice. I could choose the Army Reserves for 8 years or infantry for 4. God lead me to Ernst & Young in the manufacturing systems consulting business.

    In 1990 Desert Storm and a new born son (my wife was 8 months pregnant when my commander called me to active duty) snapped me to attention. I was a new Father and realized that a traveling job was not good for my family. I decided to move back to Chattanooga and jump into the family real estate business.

    This was the beginning of my journey to becoming a Realtor. I wanted to be an astronaut. I didn’t mean to a real estate agent.

  • Why God Asked Me To Blog Real Estate 45 Days Straight

    Why God Asked Me To Blog Real Estate 45 Days Straight
    Brian Kelly Blogging
    Why God asked me to blog about real estate 45 days straight. To Change me. He is changing my heart and wringing out future “orders”(for the military minded) or business plan (for the entrepreneurs). This is day 35 and the vision is coming into focus. The focus is my heart surgery. It’s all about me. (Keep reading… it may not be what you think) My Maker is asking me to respond. The broken pieces needing attention are the following:

    1. Relationship: The primary being the one with my Maker. I trust Him alone. Like King David, I have proven I cannot trust my own heart. He will always encourage me, heal me, discipline me, love me. Who doesn’t need that Papa in their life? My response is a constant race running to Him.
    2. Responsibility: It’s all about me! No blame on anyone else. It is my deal.
    3. Becoming trustworthy: Three things here are A.) walking the talk, B.) demonstrating care through connectedness, and C.)dependability.
    4. Using gifts: My gifts are quickly initiating action and research. Those gifts need to be used inside a framework of…
    5. Diligence: Words are critical. Jesus is the Word! Reading Isaiah 30 this morning “Words streaming from his mouth, searing indicting words! A torrent of words, a flash flood of words sweeping everyone into the vortex of his words.” Words are powerful. Putting them into universe filtered through hearts is his pleasure. So every day, I search for them and blog.

    There was once an selfish leader who focused on business for business sake. Being number one was a focus regardless of the cost, personal and human. “Business is business”, was his worn phrase applying to recruiting, hiring and firing. He listened to some who promoted positional power and fear to cover personal weaknesses. Sadly and regrettably that flawed man was me.

    Graciously my Maker did not give up. Neither did a few encouragers in my life. So my response? Watch and see, why God asked me to blog real estate 45 days straight.