April 2017 Southern by Featured Agent

April 2017

Fresh start â&#x20AC;&#x201D;

Spring home staging tips

Setting the tone for success What to expect if you decide to become a

land lord

James Krueger also featured: Mitch Holliman

contents

professionals 4

Setting the tone for success â&#x20AC;&#x201D; How to set reasonable expectations with buyers and sellers

Top 10 Traits of successful real estate agents

Fresh start â&#x20AC;&#x201D; Spring home staging tips

Featured Agent Magazine Phone 888.437.5707 Fax 888.849.3663 contact@featuredagentmagazine.com www.featuredagentmagazine.com 2

t featured cover agent

James Krueger q featured agent

Mitch Holliman

buyers&sellers 8

What to expect if you decide to become a landlord

Boost curb appeal for under $100

Applying for a mortgage? Avoid these mistakes

Materials and content included in Featured Agent Magazine and on featuredagentmagazine.com are subject to copyright and may not be copied or reproduced in any part without prior written consent. Featured Agent Magazine is published by Times 3 Publishing Group, LLC. Publisher shall not be liable for any inaccuracy, error, or omission and makes no representations or warranties of any kind, express or implied, as to the information, content, or materials included.

Setting the tone for success—

How to set reasonable expectations with buyers and sellers REALTORS® wear a lot of hats. As full-time marketers, advocates, consultants, and business owners, every day real estate agents are doing the job of multiple professionals. With demanding schedules, ongoing deadlines, and often late nights, and weekend work — there is a lot to juggle.

Those who do it well have learned that one of the keys to staying organized, keeping clients happy, and managing time for a personal life, is setting reasonable expectations with clients. By clearly laying out what your buyers, sellers and investors should expect from you as their trusted real estate representative, 4

you’ll set a tone for success from the start of your partnership.

Here are smart tips from top-producing REALTORS® for setting reasonable expectations with your buyers and sellers.

Provide a Timeline — By letting your sellers know each week what marketing efforts you’ll be initiating, they will feel confident in your organization, and won’t be as likely to feel the need to contact you if they don’t hear from you for a few days. Likewise, when working with buyers, it’s equally important to provide a timeline Copyright Featured Agent Magazine

much better to have clients who are elated by a pleasant surprise, than it is to console a disappointed client.

Provide Worst Case Scenarios — Strange as it sounds, by informing clients of the worst that can happen from the start, you’re safeguarding the relationship by avoiding a bombshell later on down the road. If your seller is insisting on pricing their home at a level that the market won’t support, explain the dangers in doing so. Or when working with buyers, prepare them for the possibility of a home inspection coming back with significant issues, particularly if they are interested in an older home. Establish Clear Communication Methods It sounds simple, but determining which method of contact your clients prefer for communication is often overlooked. From the start, be sure to inquire whether they want to be reached via text, email, or phone calls and how often they would like to be updated. Knowing how your buyers or sellers will respond best to you, and you to them, will go a long way in ensuring that an open dialogue is maintained, and that no items go unaddressed.

of how the buying process will unfold. Providing buyers with deadlines, and expectations for how long each stage of the process will take, effectively empowers them through education, boosting their satisfaction with your overall service.

Share Your Schedule — Real estate can be a 24/7 profession, but it’s still smart to let your clients know your preferred schedule. If you take calls late into the night, let them know. If, however, you return calls and texts received after 8pm the following morning, be sure to let them know that as well. If you try to take certain days off each week, or have weekly evening engagements, make sure your clients are aware that you’ll be unavailable during those hours.

Refuse to Overpromise — It’s unwise to tell a buyer that you can get the seller to pay for repairs or to promise to sell a client’s home within a set period of time. Even if you’re fairly confident that you can accomplish either of these, it’s best not to make any guarantees. It’s Copyright Featured Agent Magazine

Introduce Them to Everyone Involved — If you will be having an assistant, a showing agent, or anyone else contact clients on your behalf, be sure to let them know who each person is and the role they will play. This will prevent your clients from feeling like they are being shuffled around, or confused about why they are receiving calls or emails from your colleagues or team members.

Provide A Clear Picture of the Market from the Start — When it comes to setting reasonable expectations with your buyers or sellers, sugarcoating the market will not do you any favors. It’s important that sellers are informed about comps, and are made aware of trends, or shifts in the market immediately. Likewise, buyers should be educated on precisely what their budget will allow for, using statistics, analysis and data.

Setting reasonable expectations with buyers and sellers is a best practice for keeping your clients informed, aware, and happy with your service from start to finish. As a bonus, you’ll likely find that this process is a win-win for both of you, as you’ll be more likely to stay on target with your own personal and professional obligations and responsibilities. 5

featuredagent Mitch Holliman magazine

throughout Orange Beach, Gulf Shores, and Foley. Beyond his love of the beauty of the region, he shares his excitement for real estate with each client by ensuring that the process of buying or selling is a pleasant experience.

“Everything begins with your faith. When your faith is strong, effort comes easily, and actually becomes effortless.” “I provide my clients with service that includes keeping them thoroughly informed. I try to provide all the tools needed to get tough questions answered throughout the process,” he says. Suffice it to say, with a business that is an incredible 90% referral or repeat client based, Mitch is doing precisely what clients want, and need. “I want to provide service that you’d be proud to refer a friend to,” he says. As a byproduct of focusing on service, Mitch says, “I don’t have to spend a lot of time marketing for new business, because working by referral is all about trust.”

As soon as Mitch Holliman, REALTOR

with Bellator Real Estate in Orange Beach, AL begins to talk about his career, it is obvious he loves what he does. More precisely, he loves where he gets to do it. “I grew up in Greenwood, Mississippi. My father owned gas stations and bought and sold real estate. We had a little house on the Gulf Coast, and we always vacationed here,” he recalls. By 2003, after graduating from Mississippi State University, Mitch had moved to the idyllic community he’d loved since he was a child. To this day, he can’t imagine living anywhere else. “This is still my favorite place in the world,” he says.

For the past 14 years, he’s been sharing that passion for the Gulf Coast with buyers and sellers who are interested in condos, single family homes, or land lots 6

Clients have every reason to trust Mitch. He’s noticeably genuine when talking about the morals that guide the way he conducts business. For him, those three guiding values are: faith, effort, and gratitude. “Everything begins with your faith,” he says. “When your faith is strong, effort comes easily, and actually becomes effortless.” However, he admits that it doesn’t hurt that he has a lot of support. “Our company has a great work ethic, and we all drive one another to be stronger every day,” he explains. As far as gratitude is concerned? For Mitch, it is indispensable. “Gratitude has to be in your heart and mind, to see all of the blessings before us, and to show us why we work so hard day after day. I’m a firm believer in gratitude before attitude,” he says with a smile.

These strong convictions, coupled with the fact that Mitch loves nothing more than meeting new people, have given him a life and a career beyond his wildest Copyright Featured Agent Magazine

dreams. “I’m fortunate to meet new and interesting people all the time through real estate. I become friends with my clients, and that’s my favorite part about what I get to do in this great profession.”

Of course, being a true friend sometimes means that Mitch has to tell people things they don’t want to hear. But he wouldn’t have it any other way. “I have to be honest if they have unrealistic expectations. I have to look out for those who choose to do business with me, and it’s important to me that they know I have their best interest at heart, and that means always being honest, humble and kind,” he explains.

With such dedication to doing what is right for his clients, it’s no surprise that from the very start of his career in real estate, Mitch was successful. Named the Rookie of the Year for Alabama in his very first full year, Mitch continues to win awards for various milestones. But to hear him tell it, the true rewards are in the work itself, and in living in paradise.

“I will be in real estate until I can’t work any longer. I love living on the Gulf Coast, and I hope to be building and selling here for years to come. I can’t ever see myself not doing this.”

Mitch Holliman Bellator Real Estate & Development | Orange Beach, AL 251.979.8155 | MHolliman@BellatorAL.com | MitchHolliman.com Copyright Featured Agent Magazine

What to expect

if you decide to become a landlord

You’ve found your new home. It’s perfect, and you can’t wait to move in. Yet, even though your new home has all the bells and whistles you’ve been dreaming of, the thought of letting go of your current home feels a lot like having to throw out your favorite sneakers. You know it is time to say goodbye, but it is so comfortable, and familiar… and you are going to miss it.

But what if you didn’t have to let go of your current home? What if you decided to keep it and rent it out? Would it make sense for your situation? Are you cut out to be a landlord? If you’re wondering if becoming a landlord is a smart decision for you, it’s best to first weigh these three considerations carefully. You’ll want to run some basic numbers to determine

Will You Make Money by Renting Your Home? 8

whether you can secure enough rent to cover your mortgage on your home each month. However, there’s a lot more to being a landlord than just collecting rent. Keep in mind you’ll need to continue paying for repairs, taxes, insurance, HOA fees (if applicable), along with absorbing costs of vacancy. If you find that becoming a landlord is going to cost you money each month, it is probably in your best interest to sell your home with the help of an experienced REALTOR.® On the other hand, if the numbers indicate that even with all expenses of maintaining the property factored in, you’re still turning a profit; becoming a landlord may be a very smart decision.

Are You Ready to Deal with Tenants? There are many wonderful tenants, who you’d undoubtedly love to have living in your rental property. There are Copyright Featured Agent Magazine

As a landlord, unless you choose to turn the responsibility of renting your home over to a property management company, the onus will be on you to successfully work with your tenants. available to tenants, should emergencies arise. You’ll need to have time to show the home during vacancies and repair the home between tenants. You must be willing to spend time finding contractors or vendors (unless you’re planning to make repairs, clean, and update on your own). You’ll need to set aside the time to learn to read credit reports, and/or background checks on potential tenants. You’ll also need to become familiar with laws and regulations in your state regarding your responsibilities as a landlord, and the rights that your tenants have while renting from you. So, is becoming a landlord right for you? If you answered “Yes” to the three questions above, keeping your home and renting it out may be a natural fit for you. However, there are still many additional and important items to consider before ultimately deciding whether to sell or rent your home.

also some tenants who can make your life a nightmare. Exceptionally messy tenants for example, may cause you great stress. Noisy tenants who irritate neighbors may also make your life difficult. Tenants who are chronically late in paying rent may cost you sleep. As a landlord, unless you choose to turn the responsibility of renting your home over to a property management company, the onus will be on you to successfully work with your tenants. If you don’t feel ready to handle any of these situations, becoming a landlord is probably not in your best interest. Do You Have Adequate Time to Be a Landlord? Should you make the decision to become a landlord, you must accept that you’re agreeing to make a significant time commitment. If you personally manage your property, you’ll need to plan to be Copyright Featured Agent Magazine

Subsequent considerations may involve analyzing market trends to see if the area where your home is located is appreciating in value, or depreciating. Likewise, you’ll want to crunch additional numbers to determine if you will make a profit if you sell now, and if so, how much of a profit you’ll make. You will want to know if you’ll be taxed on the profit from selling your home, and weigh that against keeping it and renting it. Suffice it to say, many of these financial considerations will be best decided through consulting with a trusted advisor such as your CPA or financial advisor.

If, on the other hand, you answered “No” to any of the three questions above, it’s unlikely that you will find becoming a landlord an enjoyable — or profitable — endeavor. In that case, it’s time to turn over the responsibility of selling your current home to an experienced REALTOR® who can ensure that you get top dollar for your sale. 9

Top 10 Traits of

successful real estate agents

It takes a special person to become a successful real estate agent. Succeeding in the business requires a unique set of qualities and skills that not everyone has. But when they all come together, the result is someone who is perfectly suited to the ups and downs of a life in real estate. These are the Top 10 traits real estate agents need.

Friendliness — As an agent, you have to be able to talk to all kinds of people about a wide range of topics. Being open and friendly is a must for real estate professionals.

Empathy — Agents deal with people at some of the highest — and lowest — points in their lives. Being able to empathize and understand what clients are going through is essential.

Listening Skills — Successful real estate agents are great listeners. It’s an important part of finding out what your clients true wants and needs are.

Sense of Humor — Weathering the ups and downs inherent to real estate is going to be easier — and more fun — for agents who are able to laugh at themselves and maintain a sense of humor when faced with adversity. Tenacity — Great real estate agents possess a mental toughness that may not always be on display, but is definitely there. They are tenacious, committed and goal-oriented.

Desire to Learn — With markets and technology changing at an ever-increasing pace, it’s essential for agents to want to learn more and continue their education throughout their careers.

Assertiveness — You want what’s best for your clients, and sometimes, you’ll have to fight for it. Being assertive while remaining professional is a balancing act the best agents have down pat.

Attention to Detail — When it comes to real estate, the devil really is in the details. When you’re working with contracts and figures, having a good eye for detail is essential.

Honesty — No agent lasts in this business without developing a reputation for honesty and integrity. Real estate agents must be committed to doing the right thing at the right time — every time.

Self-Starter — Perhaps the most important trait successful real estate agents share is the ability to motivate themselves. Without it, agents won’t last long in this business. You have to have the drive and desire to succeed.

James Krueger

James Krueger When your business is rooted in helping people, great things can happen. That’s what James Krueger, broker and owner of Krueger Real Estate in Houston, has always believed and it has turned out to be true. “My philosophy is the more helpful we are, the more people are going to come back to us,” James says.

After studying economics at Texas A&M, James followed the business consultant track for several years. But there was always a lingering feeling of dissatisfaction, particularly when the compensation didn’t reflect the hard work and dedication he was putting into his job. “It was frustrating to work so hard and not see that reflected financially,” he says. “I had a friend whose dad did real estate out in Katy. “My interest was piqued at the thought of a career where the level of hard work that I put in was reflected in the success I achieved. I got my license and started part-time. By December 2008, I decided to go for it full-time; sink or swim.”

That decision has proven to be the right one. In less than a decade, James has experienced tremendous success as an individual agent and now as the owner 12

of his own brokerage, managing more than 40 agents who serve areas from Conroe to Galveston and everywhere in between. Krueger Real Estate made a name for itself in their strong presence with buyers and a growing presence with sellers through a newly developed team of listing specialists.

One thing that will never change, whether assisting buyers or sellers, is the team’s commitment to always remaining client-focused. “We have fantastic reviews on Zillow — one of the most of any brokerage in the area,” he says. “What clients love about us is how quickly we respond. We develop relationships based on honesty and integrity. We’re always honest with clients no matter what; even if we have to tell someone a house might not be right for them,” he continues. “Clients really appreciate that kind of feedback because they know we’re keeping their best interests at heart.”

Everyone who works at the brokerage — from assistants to agents — shares one common trait. “We all have a service mentality. Our main goal at heart is to be helpful,” James says. “When you keep that at your

core, and you really believe in it, you’re going to give someone the absolute best service possible.”

As someone who is closely involved with helping agents develop their careers, James has sound wisdom to offer those who might be thinking of trying a career in real estate. “It’s not necessary for a brand new agent to reinvent the wheel. Join a team where you can get leads and the support you really need,” he says. “We’ve had several agents who came from different careers or other brokerages and, with our team, became Houston Association of REALTORS® Top Producers. When you’re brand new, it’s so important to find a place where you’re going to get hands-on experience and the chance to learn firsthand.”

James himself is no stranger to the Top Producer honor. “I was very proud the first time I was named a Top Producer. I went from nothing to something, all on my own. That meant a lot,” he says. Additionally, Copyright Featured Agent Magazine

“We all have a service mentality. Our main goal at heart is to be helpful. When you keep that at your core and you really believe in it, you’re going to give someone the absolute best service possible.” James has been included in Houston Association of REALTORS® Top 20 Under 40, and has been named one of the 100 Most Influential REALTORS® in Texas. “It’s always a good feeling to know your hard work and dedication is paying off and being recognized,” he adds.

The team’s commitment to being of service isn’t reserved just for their clients. It also extends into the surrounding communities. “We love giving back to our community and we think the best way to do that is to use the resources we already have,” James says. “Over the last several years we’ve partnered with Habitat for Humanity as well as New

Hope Housing through the Texas REALTORS® Leadership Program’s Dog House Extravaganza. From maintaining community gardens to building a dog house to donate, we believe giving back is an essential piece when building a successful business in a community.” It doesn’t take long to realize that real estate is truly what James is meant to do. “The part I absolutely love — which applies both to when I was an agent and now being the broker — is that I really get to help people. I make a difference in people’s lives and that’s what I’m passionate about. I wouldn’t trade this career for anything.”

James Krueger Krueger Real Estate | Houston, TX 713.364.4003 | james@krealestate.com | www.krealestate.com 14

Fresh start —

Spring home staging tips

Even if the weather suggests otherwise, spring is right around the corner (and has already arrived in many places). With this change of season comes a change in the way you stage and present your listings. Spring is all about showing off a space that looks fresh, clean and inviting. Check out these pro-approved home staging tips for spring.

They don’t call it ‘spring cleaning’ for nothing Spring home staging starts with a deep cleaning. Winter is tough on a home’s interior. There’s been water and dirt tracked in on boots. Dust building up from heated dry air. And clutter accumulating from holidays and other activities. Before you start adding the aesthetic touches, get back to basics and be sure the home is cleaned and freshened from floor to ceiling. Encourage your sellers to overhaul and purge, rather than just stuffing clutter out of sight in closets. Remember, buyers will check closets for storage space Copyright Featured Agent Magazine

and if they’re overstuffed, it appears there’s not enough room for storage.

Turns out, it’s easy being green — Spring is all about new beginnings. This year’s Pantone Color of the Year — Greenery — is the perfect starting point for adding spring color to the home. The fresh hue is inspired by the color of new leaves, and is surprisingly easy to blend with other colors (Pantone calls it ‘nature’s neutral’). Give the home a fresh, trend-ready look and feel by incorporating the color into throw pillows, bed and bath linens and kitchen towels or placemats. Additional colors that will be hot for the season are blush pink, tan, sage and a spectrum of blues — from delicate robin’s egg to rich lapis. When in doubt, bring the outside in — Nothing says spring like something in bloom. Fresh flowers placed throughout the home are always an elegant

Spring is such a special time of year. Capture that feeling in your listings by staging them to reflect the promise of the season. You’ll attract buyers who will want to make your listings their new beginning. and upscale choice. But if that’s not in the budget, there are plenty of other ways to bring the outside in. Flowering potted plants are a more affordable and longer-lasting choice. Potted herb gardens are beautiful, fragrant and perfect for a kitchen windowsill. Indoor succulents remain a popular choice and require almost no maintenance. They’re an easy way to add greenery to any room.

From April showers to fresh flowers — While winter is all about scents that evoke cozy warmth — like vanilla and cinnamon — spring’s home scents should be fresh, clean and light. Think of those things that make you take a big deep breath, like laundry drying in the sun, freshly cut grass, or spring’s brightest blooms. Look for candles or oil diffusers in these scents and place them strategically throughout the house for 16

subtle hints of fragrance. Extra points if the candle colors echo the spring color theme.

Don’t forget those finishing touches — Showing homes this time of year is tricky. You might go through two or three weather changes in the same day. But you’ll be ready for them if you keep a fresh welcome mat by the front door, an umbrella holder in the entryway and hang a few Command hooks to hold raincoats or sweaters. Be sure the front walkway stays clean and unobstructed. On cloudy days, turn on lights throughout the house to chase away the gloom.

Boost curb appeal

for under $100

You know that one house on the block that always catches your eye as you drive by? It just has that certain something that always makes you look twice and think “what a cool house!” That something is called curb appeal. If you’re getting ready to sell your home, boosting its curb appeal is an important step to help ensure it sells quickly. But even if you’re not selling, why not bump up the curb appeal anyway? You’ll love seeing those special touches every time you return home. Plus, now your house will be the one that has that certain something that gets the neighbors buzzing. Here are several ways you can boost curb appeal quickly and easily. Best of all? Most ring in under $100! Create a Dramatic Door — There’s no easier way to make a statement than with a colorful front door. It stands out in the best possible way and causes people to look twice. The question is, what color? The possibilities are endless and only limited by your imagination (and maybe your HOA). Bold red, hunter green, and glossy black are classic choices. Turquoise, Copyright Featured Agent Magazine

yellow and mint green lend a vintage vibe, while lime green, gray and bright white feel contemporary. If you just can’t decide, download the app Front Door Paint, which allows you to see how different colors will look before you choose. The door makeover doesn’t have to stop with paint, be sure the hardware is looking good, too. You can clean, polish and even paint (using spray paint for metal) what’s already there or add new hardware to complete the new look.

The Numbers Count — If you’re selling your home, clearly visible house numbers are important so prospective buyers know they’re looking at the right house. But more than that, stylish house numbers can enhance the overall look of your home’s exterior. Choose a font and material that complements the architectural style of your house for a clean, cohesive look. Prioritize Plants — Bursts of color from fresh flowers add a warm and welcoming look to the front of your home. You can install window boxes, a vertical 17

hanging wall planter, or simply cluster flowering potted plants into small groupings. If entry space is limited, you can achieve the same feeling by using hanging planters. If the climate doesn’t allow for summer flowers, or if you prefer a minimalist look, potted succulents are a trendy (and easy care) alternative.

Don’t Forget the Details — Pay attention to the small details that can make a big difference in your home’s curb appeal. Fix or replace torn window screens, keep sidewalk cracks and edges free of weeds and grass, power wash the driveway until it looks pristine, and roll up or put away garden hoses.

Shed Some Light — Exterior lighting is more than an aesthetic issue, it’s one of safety as well. Make sure you have ample illumination by the front door and along the front walkway. If outdoor lighting fixtures are looking worn and weather-beaten, clean them first, then polish or paint them. Line the front walkway with solar twinkle lights or light stakes. It might not seem 18

Quick Fixes No time for a project? Here are five ways to instantly improve curb appeal. • • • • •

Scrub the front door and polish hardware Put out a new welcome mat Clear the front porch light of bugs and leaves Add a grouping of flowering potted plants Pick up trash and yard debris

like much during the day, but at night everyone will notice the beautiful glow.

You’ve Got Mail(box) — A saggy, shabby, weatherbeaten mailbox can downgrade the overall look of your home. If yours is still in good shape, clean it and give it a coat of fresh paint. If it’s seen better days, upgrade to something new. Copyright Featured Agent Magazine

Applying for a mortgage? Avoid these mistakes Applying for a mortgage is exciting, because it’s the first step toward becoming a homeowner. But the process can also feel invasive, intimidating, and a little overwhelming. After all, it’s not every day that someone you don’t really know takes a deep dive into your financial life while holding your future in their hands. If you’re wondering what you can do to make the process go more smoothly, here are five things not to do when applying for a mortgage:

Change Jobs — Stability is one of the most important things loan officers are looking for. Immediately before or during the mortgage approval process is not the right time to switch careers, start your own business, leave a job or make the move from a salaried position to a commission-based income. Even if you’re not crazy about your current job, grin and bear it until you have completed the home buying process. Once you’re happily settled in your new home, you can start looking for a great new gig.

Open or Close Credit Cards — During the mortgage approval process, every financial decision you make is going to be under scrutiny. Opening a new credit card can appear to be a reckless move, particularly if you run it up to its limit quickly. With that in mind, it might seem like closing any unused credit accounts you have would be a good idea. Wrong again. That will change your debt-to-income ratio and possibly hurt your chances of approval. Remember, your loan officer is looking for stability and responsibility, which is why you need to stay the course when it comes to credit.

Co-Sign a Loan — Co-signing a loan might seem harmless, because you’re just helping someone out. You’re not really responsible for paying it back, right? Not true. Co-signing a loan can wreak havoc on your carefully cultivated credit. The fact is, you are 100% responsible for paying that loan back if the other party can’t (or just doesn’t want to). In fact, a recent survey shows that nearly 40% of co-signers Copyright Featured Agent Magazine

actually end up responsible for paying back the cosigned loan. Even after your mortgage is approved, you should always think twice about co-signing; in most cases it’s just not worth the risk.

During the mortgage approval process, every financial decision you make is going to be under scrutiny. Make a Late Payment — The excitement of the home-buying process can be hectic and unpredictable, which may cause you to let other things slide. But making a late payment on a credit card (or any other) bill, can spell disaster during the mortgage approval process. Just one late payment can cause a dip in your credit score that may be alarming enough to deny you the loan. Additionally, many lenders require a 12month record of on-time payments on all accounts as one of the baseline measurements to be considered for a mortgage. To avoid overlooking paying bills during this busy time, set up everything you can on auto-pay so you know all your bills are being taken care of.

Move Money Around — Unusual activity in any of your accounts is going to be a red flag for a mortgage loan officer. Avoid large cash deposits and moving big sums of money between accounts. If you receive any cash gifts intended to help with your down payment, the gift giver may be required to provide documentation that the money was given for that reason and does not need to be paid back.

Now that you know what not to do when applying for a mortgage, you can focus on the excitement of preparing to buy a house. Remember, virtually everyone who has ever purchased a home has gone through the mortgage approval process and lived to tell about it, and you will, too. Good luck!

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