If you are new to the real estate industry and being self-employed, you need to understand the difference between working as an employee and working as a real estate agent. A licensed real estate agent is hired as an independent contractor. What does this mean and what is the difference working as an employee or independent contractor?

Employee
An employee usually works at the employer’s place of business and the employer controls (or has the right to) the how and when an employee performs his job. The employee must follow the directions and polices implemented by the employer. An employee may be paid hourly, salary or commission and will receive a W2 at the end of the year. The employer may offer benefits, paid time off and retirement plans to employees. The employer must pay workers compensation and deduct payroll taxes according to law.

Real Estate Agent as Independent Contractor
A real estate agent working as an independent contractor is a self-employed individual working under an independent contractor agreement and is not an employee. An independent contractor controls how the work is accomplished. A real estate agent may use his own business name and may work out of his home office. The agent is independent of the real estate company that employs him, but he must follow the terms and conditions of the independent contractor agreement. 

A real estate agent is responsible for paying their own quarterly taxes. They will receive a 1099 at the end of the year instead of a traditional W2 that an employee would receive. Real estate agents have to pay full social security taxes and are not eligible for unemployment. Read the rest of this entry »

In a recent ProSchools webinar “Selecting a Broker” we discussed things someone new getting their real estate license should ask and consider when interviewing managing brokers. Over 30 of ProSchools’ real estate students attended this well-received topic.  Our guest speaker, John Spitzer, Principal Broker with John L Scott in Portland, OR answered these questions for our blog.

What is the best advice you would give a new agent for success?

A. Start the interviewing process early. Choose your broker early so when you pass the exam, you can start right away without downtime.

B. Set up your sphere of influence on an Excel spread sheet while at school and let friends and family know you are going into real estate. You will be able to get your announcements out day one. Some of your friends and family planning to sell may wait for you to get licensed to help you out. There is nothing worse than hearing that if they had only known they would have listed or purchased through you!

C. Be proactive. Don’t wait for the business to come to you. Go out and get it!! Make phone calls, start a listing farm, do whatever you have to expand to your sphere of influence. The more people you contact, the more appointments you will get and the more sales you will make.

What are the best questions a new agent should ask when interviewing real estate companies?

A.What kind of experience does the Manager have? You should be thinking to yourself, is this person someone I can work with who will be there for me and knows what he is doing. How much is he around? The manager is going to take you under his wing and show you the ropes.

B.What kind of training do you have and how is it delivered?

C.What is your compensation program?

D.What kind of tools and technology do you have?

E. Does the company have a website and what kind of exposure does it have?

F.What kind of office or desk space will I have?

G.What kind of staff do you have and what kind of support can I expect?

H.Can you help me develop a business plan and implement it?

I.What kind of floor time do you have and are there houses I can hold open?

What sets your company apart from others? For example, John L Scott excels in 3 areas.

A.Great managers, many with over 30 years in the business.

B.Cutting edge tools. An example would be our custom developed CMA Program with Trend Graphics and Listing Presentation. Another example would be using our website with your iPhone where you can stand in front of a house and the GPS in your iPhone tells the website the listing you are located next to and brings up the multiple listing information on your phone.

C.Technology, especially our website is the best in the industry. Lennox Scott pioneered the internet for real estate and has received numerous awards for it. Our website has more unique visitors and hits than any other Real Estate Company website in the Northwest.

Feel free to contact John Spitzer if you live in the Portland metro area and want an excellent and knowledgeable managing broker and company to interview with:

John A. Spitzer, CRB Principal Broker  State of Oregon John L. Scott Real Estate Web - http://www.johnlscott.com or johnsp@JohnLScott.com or call 503-291-1900.

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We hear a lot about short sales and foreclosures in our current real estate economy, but what exactly is a short sale and what is involved?

A short sale occurs when the outstanding loans and liens against a property are greater than the proceeds of the sale of a home. A homeowner may consider this option if they are facing foreclosure or they need to sell in a down market. A homeowner must meet certain qualifications and the lenders must agree to allow a short sale. Read the rest of this entry »

One of the first steps you need to take after passing your real estate exam and getting licensed is to join the National Association of Realtors. You may not use the Realtor® trademark or call yourself a Realtor® unless you are a member of the NAR. The NAR has registered this title and only allows its members to use it. Most real estate companies will require that you join the NAR and local associations.

Find valuable information about the National Association of Realtors at http://www.realtor.org/ as well as information on the real estate industry. ProSchools recommends investing some time to look at this site and get familiar with what is going on and what is available to you. You may also call NAR at 1-800-874-6500 and talk to a customer service specialist. Read the rest of this entry »

As you work on your studies to get your real estate license, you should be thinking ahead about the steps you will need to take to start your business once licensed.

As a newly licensed real estate agent, you will need to work under the supervision of a managing broker for a period of time designated by your state. Start interviewing managing brokers from different companies early to determine where you will start working once you obtain your license. Read the rest of this entry »

For those interested in getting a Washington real estate license, you should know that Washington passed a new real estate license law, RCW 18.85.  The old law was created in 1925 — 85 years ago!  Current practices and the way the law was written made it difficult to enforce and hard for licensees to obey. The new law signed by the Governor on March 14, 2008, becomes effective July 1, 2010.  Some changes impact current licensees, but most impact new people coming into the business.  The Washington DOL has helpful FAQs.

Here are some important things to know about the new law:
•New applicants after July 1, 2010 will take a broker test (used to be a salesperson test) and need to complete a 60-hour fundamentals course and a 30-hour practices course to qualify for the broker exam. Read the rest of this entry »

We all know the answer is “yes”. But some days it’s hard for me to remember what life was like at ProSchools before mortgage education and NMLS consumed much of my waking hours.

For a few minutes, I’m taking an NMLS-break. This posting is about something really cool that happened today and how ProSchools helped make it happen.

From ProSchools’ Missions Statement…Our Core Beliefs and Promises: when all is said and done, the quality of relationships we foster will be the true measure of our success.

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ProSchools is here for you Louisiana Mortgage Loan Originators!  Did you know that you are one of the fast track states?  What does this mean?  Your state, Louisiana, is one of the first in the nation  to take part in the SAFE Act transition plan.

ProSchools will be here,  ready to assist you with your educational requirements.  We can help you meet your educational needs with a high quality program.

As of July 31, 2009 the requirements for loan originators to be licensed in Louisiana are:

Complete 24 hours of NMLS-approved education. The education must include a minimum of 3 hours of federal law and regulations, 3 hours of ethics, and 2 hours related to lending standards for nontraditional mortgage product marketplace. Read the rest of this entry »

People call us all the time about getting an Oregon real estate license. How hard is it? How much will it cost? Do I have to go to real estate school? Will an online course train me to pass the real estate exam? Will there be a job for me when I finish? Let me try to answer a few of these questions.

Getting a real estate license in Oregon is fairly easy. There are 3 main requirements.

1. Real estate education — You must complete a state-approved 150-hour real estate course. Online training is very popular in Oregon, especially since the hours are fairly high compared to other states.
2. Complete a background check — Submit to the State of Oregon Real Estate Agency a completed background check and fingerprints.
3. Pass the Oregon real estate license exam — It’s a two-part exam and you have to pass each part by 75%. There are only 200 questions. Read the rest of this entry »
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   Tags: Oregon real estate license, Real Estate Agency, real estate broker, real estate exam, real estate school

At ProSchools our real estate courses are ARELLO approved.  What’s this mean?  It’s good to know!  Let’s break down what ARELLO is and the benefits to you.

So, what is ARELLO?

The Association of Real Estate License Law Officials (ARELLO-IDECC) is an organization comprised of real estate regulatory officials from all across the North America, Africa and Asia. In an effort to better equip its members to protect the public through quality education of its regulated professionals, the group developed a set of standards for distance education course delivery and has everything to do with assurance that important educational principles are being met when the instructor and pupil are separated by time and/or space.

ProSchools courses have met the high bar of criteria and received the stamp of approval.

Even jurisdictions that don’t require certification certainly hold ARELLO course standards in high esteem as a quality course for their jurisdiction’s pre- and post-licensees.

Furthermore, as of January 1, 2009 instructors are required to be ARELLO certified.  The CDEI designation provides an excellent credential and knowledge base for the distance education courses.

So, that’s what ARELLO is and the benefits to you, the real estate agent.