First Time Homebuyer Tax Credit

As an addition to my last post, I forgot to add that the up to $8,000 tax credit for first time homebuyers adds great incentive for new buyers to enter the market during 2009. The credit against taxes owed does not have to be repaid (unlike the 2008 credit) and is available to first timers with individual adjusted gross incomes not exceeding $75,000. A detailed explaination of the credit is available on the NAHB site.

Are You Going to Benefit from the Rebound?

The National Association of Realtors reports that housing affordability was at an all-time high in December. Also reflected in that report was the good news, for us, that the Midwest had the highest affordability index of the four geographic regions. Mortgage rates are as low as I can remember in my 30 years in the business. It was slow back in the early '80's when rates were in the mid to high teens, but when it broke...wow, we had a good number of great years. So is now the time to get into the business? Nobody knows, but when it breaks...

Goal Setting

Our education director, Joan Murphy, has posted a great outline for helping new agents set goals. The importance of having goals, and even the process of setting them, cannot be stressed enough. Earl Nightingale said, "You become what you think about," the idea formulated from Napoleon Hill's important book, Think and Grow Rich. Nightingale authored a book (see nightingale.com) called The Strangest Secret addressing this concept. Basic to it all is setting and focusing on goals in your chosen profession and in your life. Joan's article can be found at prudentcareers.com.

The Relationship Between Success and Knowledge

Success in this business is partly a matter of timing, partly the company you elect to associate with, partly how much time you devote to prospecting, partly how many people you know (sphere of influence), and partly just plain luck, but mostly it’s a process of becoming a true real estate professional. Sure becoming a professional involves real estate education and training, but a lot of it is simply increasing your knowledge of the local market. I am working on a list of things every agent "should" know and will post it soon on prudentcareers.com.

Audio Review for State of Illinois RE Exam

The material will prepare you to succesfully pass your Illinois State License examination.
The primary presenter is Vince DePaul, known to many as “Mr. Real Estate.” Vince is a Real Estate Broker and a licensed real estate instructor. For ten years he hosted a weekly, live, call-in radio broadcast called “Your House.” He has taught real estate at College of DuPage for several decades and is the Dean of The Your House Real Estate Academy.

This material comes in the form of audio CD's and includes review questions.
It can be ordered from YourHouseAcademy.com for $25.95.

He Doesn't Listen to the News

"How's the market?" That question is becoming almost banal: real estate agents ask each other, friends ask, people considering this as a career ask. The media is filled with dismal economic reports, but what happens when an agent doesn't buy into the gloom? One Realtor® friend and colleague, John, could prove the old adage about the very successful salesman who, "didn't know how bad it was," to be absolutely true. He is constantly upbeat and working. Three weeks ago he recorded six transactions and I noticed another two come in this week. I saw him yesterday with some new signs he's had designed to post at open houses: big, dramatic signs. Twice in the last few weeks he's had to cancel meetings with me in order to meet buyers. Yes, it's a bad market if you allow it to be and John is not doing that.

Prospecting for Buyers

If you'd like to attend a Home Buyers' Seminar to see what agents and companies do in the ongoing attempts to locate prospective clients, feel free to come on Wednesday, February 25th. Our Arlington Heights and Palatine offices are holding a seminar covering the home buying process, legal aspects, home instpections, and financing. Also covered will be the foreclosure maket and what to watch for when buying "REO" property. The seminar will run from 7 to 9:30 PM at our Arlington Heights training center: 300 E. NW Highway, A.H. Please call Margie at 847-392-3900 for a reservation.

Illinois License Test Review Material

At the Prudential Starck Realtors' career web site, prudentcareers.com, I've posted some review material that might help those of you preparing to take the State of Illinois licensing exam. We're still working on the "word association" list and we'll post that soon. If anyone wants the partial list, just let us know and we'll email it.

Agent Income

There are several models for broker/agent compensation plans, but the most common is some sort of commission split schedule. In some plans, the agent may have a monthly fee payable (desk fee) to the office in return for a set commission split on all agent generated business. Most of the franchise companies (Prudential, Century 21, Coldwell Banker, ERA, etc.) use graduated commission schedules where the agent’s split is based on the agent’s level of production, although some may also offer desk fee arrangements.

The majority of brokers are members of a Multiple Listing Service through which they offer to share earned commission with other broker members who cooperate in the sale. Most transactions have two sides with a listing broker and selling broker, as well as agents working under each. So, in a very simplified example, if a transaction resulted in a $6,000 total fee, the listing broker and his agent would split $3,000 and the selling broker and his agent would split $3,000. For an slightly more detailed description see prudentcareers.com.

A Note on Continuing Education from Vince DePaul

Real estate license laws are enacted to protect the general public from unprofessional and dishonest agents and to evaluate the competency of persons seeking real estate licenses. After they become licensed, the Act also places high standards on those licensees and require all agents and brokers to maintain those high standards through continuing education.
Before a real estate salesperson renews their license in April of each odd numbered year, 12 hours of continuing education are required. Six of those 12 hours must be the state mandated Core courses (Core A and Core B) which emphases license laws, escrow, agency and fair housing laws. The remaining 6 hours are elective courses such as Ethics, Environmental Issues, Risk Management, etc.
Before renewing their license in April of every even numbered year, Real estate broker licensees must complete the required 12 hours, and an additional mandatory 6 hour Broker Management course, for a total of 18 hours of CE.
In order to satisfy the CE requirements, agents may take classroom instruction or enroll in state approved "self-study" or computer-based courses.
After successfully completing the CE courses, the agent will receive a uniform transcript of completion. This transcript is strictly for the agent's records. No proof of CE is required to be mailed to the state when renewing their licenses. The approved CE schools will notify the IDFPR of the compliance via the internet. When the license renewal form is received (or if the renewal is done online) the agent simply checks off the box that says "I have complied".
Continuing educations requirements are an important part of the license Act and good for the consumer and the industry.
For more information on state required CE, or to enroll in our course, call 800-375-7032, or visit YourHouseAcademy.com.

Don't Mean to Harp, But...

Illinois requires that every prospective agent take and pass a prelicense course (currently 45 hours) and then pass a State exam, the uninformed would believe they were prepared to sell a home. Not true of course, the process is not unlike taking driver’s education and then the driver’s test. The new agent is no more prepared to service a real estate client than the new driver is to handle rush hour in Chicago. Illinois Senate Bill 0571 which proposes increasing the required hours and some other improvements in continuing education, etc. was apparently shelved again (session sine die) on January 13th, but change is coming. It remains true, however, that the real training needed to become a real estate professional will come from the broker with whom you associate: choose carefully. At Prudential Starck Realtors we have a mandatory 60 hours additional classroom training for all new agents.

Licensing Workshop

The new schedule has been posted on prudentialstarck.com. These workshops have been a great way to help students pass the State of Illinois exam. Our Palatine workshop on Saturday mornings is on-going and students are welcome to join us any Saturday. The class starts at 8:30 and we're usually out by 11 or so. It takes us approximately seven weeks to cover the basic material and another week or so for review and math. Please call if you're interested. Mike Cromie can be reached at 847-772-2121. For questions about the other workshops visit yourhouseacademy.com .