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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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.

The short sale process actually begins when an offer is made that is less than the value owed on the home. If the homeowner qualifies and lender agrees to accept a short sale offer, the first mortgage holder will release the homeowner from any deficiency. Short sales become complex when there are second or third lenders. These additional lenders must also agree to the terms of the short sale and take less than what is owed to them. These additional lenders may choose not to release the owner from the deficiencies. If this happens, the seller needs to make arrangements to repay the deficiency amount or they may decide not to go through with the short sale and end the deal.

If the additional lenders decide to accept the short sale offer and release the home owner from deficiencies, the lender will write off the deficiency amount and send a 1099C to the homeowner for tax purposes. The released deficiency amount will then be included as additional income for that year and the homeowner will have to pay taxes on the amount the deficiency amount was released.

The homeowner should consult an experienced tax advisor. They may be able to avoid paying taxes on the 1099C under the following circumstances:

•File bankruptcy, in which case they will be able to exclude their retirement funds from the computations if they have any.
OR
•Prove insolvency, in which case they must include any retirement funds in the computations if they have any.

NOTE from ProSchools: Only a tax advisor should advise homeowners regarding taxes!

Short sale negotiations are very complex, time consuming and requires expert knowledge and negotiating skills. A short sale specialist is skilled in knowing short sale procedures and negotiating with lenders. Short sale specialists usually know which lenders are best to work with and which are most difficult.

Lenders usually take several months to decide if they will accept an offer and may come back with a counter offer to the buyer raising the price or terms of the offer. Many inexperienced buyers become impatient and walk away from the deal before a decision is made.

Because the short sale process is very complicated, it is advisable to take specialized training and consult with your managing broker if you have a client who will be in a short sale transaction. You may consider splitting your commission fees with a short sale specialist and let him or her manage the short sale negotiations. Whatever you decide, always make sure to ask the advice of your managing broker.

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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.

REALTORS®, who are members of the National Association of REALTORS®, must take courses in Ethics and follow a Code of Ethics. Visit this link to view the criteria of the Code of Ethics.

There are many benefits and discounts available for NAR members. Some of these include the following and are found on the NAR website http://www.realtor.org/:
•NAR’s Realtor® Credit Union and financial services
•Educational tools for earning specialized designations or certifications
•Home warranties and insurance programs for you
•Marketing systems to help build your business
•Technology tools
•Office solutions
•Travel

Check with your hiring broker or manger to find out what local associations you are required to join. Once licensed, keep all your receipts including association dues and consult your tax advisor on what is deductible.

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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.

Make a list of questions to ask during the interview. Think of what is important to you. Will you receive quality ongoing training throughout your first year? Larger companies might offer weekly trainings, branch meetings and one-on-one coaching. Some companies may assign an experienced agent as a mentor. Most large companies will assess desk fees and franchise fees to help cover the cost of these trainings.

Inquire how desk fees and franchise fees will be paid and what happens if you do not sell enough to pay them. Smaller companies may not assess high desk fees, but they may not provide the extensive training that a new agent needs.  It is important to assess the training provided as well as the costs to work there.

In the first year, take as much training as you can! Make sure you know state requirements for continuing education and stay on top of it. Find courses of interest that will expand your knowledge and help you grow professionally. These courses will help you increase your confidence and in return help you build your business. It is not wise to wait until the last minute to take your required continuing education as you might be putting off for later what you need to know today. The more you learn, the more confident you will become.

Start telling everyone you know that you are getting licensed and build a sphere list. Start reading real estate blogs and research what experienced agents are doing. Stay on top of your areas short sale and foreclosure rates. Attend a short sale or foreclosure training as soon as you can.

Selling real estate is an exciting career, one in which you will continuously learn and grow and you will soon discover, if you haven’t already, that you can never learn too much in this business.

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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.
•For the first renewal of a broker license (used to be salesperson license) one must complete a 30-hour advanced practices course, a 30-hour real estate law course, and 30 hours of continuing education.  
•The pre-licensing educational requirements for a managing broker changes after July 1, 2010, going to 90 hours of education (used to be 120-hours).  Courses required are brokerage management, business management, and advanced real estate law, along with proof of 3 years of active licensure (used to be 2 years experience). 
•Anyone who has passed a real estate licensing exam before July 1, 2010 must have their active or inactive license issued prior to July 1, because the passing scores become invalid as of midnight June 30, 2010. If you allow your exam score to expire, you will have to complete new education requirements, reapply for the exam, and pass the new exam.
•As of July 1, 2010, the licensing exam will be based on the new law.

•All licensees renewing on active status after July 1, 2010 must take a 3-hour transition course—it will count towards your continuing education credits.

ProSchools is getting courses ready to meet the new law and updating our website to reflect the new requirements.  Anyone taking a current course to get a Washington real estate license - salesperson or broker, should plan to complete their courses prior to May 31, 2010 and pass the license exam prior to the July 1 change.  We’ll keep you posted as we get new courses approved.

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.

Anyone licensed or that was exempt from licensing prior to July 31, 2009 has until July 31, 2010 to satisfy the prelicense education requirement.

• NOTE: 20 hours of the prelicense education may be taken through any NMLS-approved provider, such as ProSchools. Loan originators will also need to take 4 hours of NMLS-approved education through either the Mortgage Bankers Association or the National Association of Mortgage Brokers.
• Submit fingerprints, pass a national background check and demonstrate financial responsibility. Anyone licensed on or before July 30, 2009 will have until December 31, 2010 to satisfy these requirements.
• Pass the NMLS Mortgage Loan Originator test on Federal and State laws/rules. Anyone licensed or that was exempt from licensing prior to July 31, 2009 has until July 31, 2010 to satisfy the prelicense education requirement.
• Register with the National Mortgage Licensing Registry (NMLS).

Please visit our Web site www.proschools.com to view more information about the NMLS Loan Originator Test.

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.

Once you have these requirements completed, you will submit to the real estate agency a license application and appropriate fee. At this time you will need to know what company you plan to work for if you want an active license.

This past month ProSchools decided to offer an online only course.  For $499 all the training and support is still there—instructor access, customer service and tech support. ProSchools continues to offer live classes to supplement the online real estate course for those that want it.

As for what other expenses to expect, there are start-up fees that you should expect. The range is usually $1000 to $1800. We have posted real estate articles on how to best prepare for a new real estate career,  plus we have several free webinars scheduled.

Over the past month we have had a lot of calls from principal brokers wanting to hire new brokers. We suggest doing your homework now and try to get your real estate license by October. We have a couple of free Broker Fairs scheduled for September 15 and 17.  Sept 15 is at our West Portland office. September 17 is at the Acapulco Restaurant in East Portland.  You can meet hiring brokers from the Portland Metro area, representing major real estate companies.

Call us for the details: 503-297-1344. We’re always glad to answer any question!

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.

Charlie Rouse, a Certified Home Inspector with Associated Master Inspectors, recently gave ProSchools some excellent tips to pass on to our real estate students.

WOOD DESTROYING INSECT AND FUNGI INSPECTIONS

Wood Destroying Organism (WDO) inspections are not statutorily required to be included in a home inspection in Oregon. Oregon statutes do require the inspection contract to state whether a WDO inspection is included or available. A few things that every Real Estate professional should be aware of:

1. Certified Home Inspectors are required to have a signed contract before they complete a home inspection.
2. Home Inspectors who have been grandfathered in and are not certified are not required to abide by any of the current Home Inspection laws.
3. Oregon statute allows the Realtor to sign a home inspection contract as a representative of their client, but do so may exempt the Realtor from coverage under the Home Inspector’s professional liability insurance.
4. WDO inspections are unregulated by any agency in the State of Oregon.
5. Some Home Inspectors obtain a Pest Control Operator’s license from the Dept. of Agriculture as part of their marketing. This license can be misleading to a consumer since it has very little to do with WDO inspections and more to do with state and federal regulations regarding pesticide application, chemical safety and pesticide labeling.

Choosing a Home Inspector and a WDO inspector should be on the basis of ability and proven track record and not because the inspector holds any specific certification.

Wood Destroying Fungi is sometimes referred to as “Dry Rot”, which is somewhat of a misnomer because the fungi do require moisture. The term “Dry Rot” comes to us from the appearance of the wood after it has been damaged by the fungi. Rot damaged wood often has a rectangular checking that is similar in appearance to wood that has been burned. The rot damage can also appear to be very dry. Wood destroying fungi ingest the moisture from the wood at the cellular level, which is what gives the wood the dry appearance.

Wood Destroying Fungi spores are present on brand new dimensional lumber in a dormant state. As long as the moisture content of the wood stays relatively low, the fungi spores remain dormant. If the moisture content of the wood is raised, and if ambient air temperatures are moderate, and if there is a source of oxygen, then the fungi can become active.

Wood Destroying Fungi exists in a three dimensional state in dimensional lumber, which makes topical surface applications of anti-fungal chemicals ineffective. The first step in correcting fungi damage is to locate the source of moisture and eliminate it. Removing all damaged material is a recommended practice to prevent the spread of damage to avoid future confusion over whether a condition is still active or not.

Most commercial lenders who are making loans with greater than an 80% loan to value ratio, require a WDO report that is clear of any existing rot conditions. Government insured loans usually require the WDO report on a certain form called an NPMA-33. The WDO inspector should provide this form.
West of  the Cascade Mountains there two types of termites, two types of ants and one type of beetle that are classified as wood destroying structural pests. Oregon is what is called a “broad spectrum” state which means pest control operators are allowed to use chemicals that will control a broad spectrum of pests.

Damp wood termites can usually be seen flying under the streetlights after dark in late summer. They infest wood that is damp and rotting and we usually don’t chemically treat for these insects. Removing rot and correcting the moisture intrusion will cause these termites to leave.

Subterranean termites (subs) live underground and cannot tolerate the dry oxygen that humans breathe.  When subs enter our atmosphere they enshroud themselves in a mud breathing tube to survive. Consequently, when we inspect for subs we are looking for evidence of their presence since they are not surface foragers. Termite digestive systems contain a host enzyme that breaks wood and cellulose down into a simple sugar for sustenance. Subs are attracted to wood, any type of cellulose and heat. Eliminating soil /wood contact and sources of heat, such as water heaters and freezers, can go a long way toward preventing infestations since the worker and soldier termites are blind and relying on sensory input during foraging. Chemical treatment into the ground is necessary to repel subs.

Carpenter ants do not actually eat wood. They are omnivorous and eat a wide variety of plant and insect life. The damage that carpenter ants do to wood structures is related to nest building. Carpenter ants usually have a central nest and multiple satellite nests. They are very mobile and can cover 100 yards per day. They are attracted by rot, garbage, moisture and debris that provide nesting protection. Chemical treatment to kill carpenter ants is usually advisable.

Moisture ants are commonly mistaken for subs because they are castle builders and their castles look similar to subterranean termite mud breather tubes. As the name implies, moisture ants are attracted to wood with elevated moisture levels. Removing the source of the moisture in combination with a topical pesticide will usually be enough to end this type of infestation.

Anobiid beetle damage is commonly misidentified as powder post beetle damage. True powder post beetles (Lyctiid) only infest hardwoods. False powder post beetles (Anobiid) only infest softwoods. Since we build with Douglas Fir in this area (a softwood) we have no Lyctiid Beetles. Anobiids are attracted to wood with elevated moisture content, where they lay their eggs. When their eggs hatch, the larvae burrow into the wood where they are extremely destructive. I have personally inspected two homes on the Oregon coast that had anobiid damage that was so extensive that tearing the houses down and starting over was going to be more cost effective than repair. These homes were unrepairable.

Wood destroying insect and fungi damage has the potential to be extremely costly to repair. Structural failure in floors and ceilings can be lethal.

As a home inspector, I usually do not recommend that sellers perform repairs. A safer course of action for the buyers is to have the sellers compensate them in another way. Then the buyers can have the repair work performed after they have taken possession of the property and can exercise more control over the work.

If seller repairs are unavoidable, all parties should consider the following:

1. The process should be transparent and the buyers should have free access to the contractor and all documents between the seller and the contractor.
2. Under Oregon statute the buyer may have no recourse against a contractor who contracts with a seller, unless a prior contractual provision has been made.
3. The buyer’s expectations should be spelled out in the repair addendum. To ask the seller to “fix” something can mean many different things.
4. The buyer’s interests can be protected by third party progress inspections before the job is completed and buttoned up.
5. When the seller tries to perform the work themselves or uses the lowest priced contractor, this is usually a recipe for disaster. (The cheapest “fix” does not look so good when everyone is sitting in a court room or the work has to be redone.)

When writing a repair addendum or counter offer a Realtor should avoid referencing the building code. I read many documents where the buyer asks the seller to repair something “to code”. The problem with this approach is that the code may grandfather things in that the buyer would wish to avoid. The code may also be silent on certain issues of workmanship. If you are looking for a way to express a high quality of work, I recommend you use “the prevailing professional practice”.  A counter offer may read “The seller will have the deck repaired to the prevailing professional standard.”  There will be no higher standard than that of the applicable tradesmen.
Thank you for taking the time to read my article. I would be happy to talk with you if you have questions or comments.

Charlie Rouse
Oregon Certified Home Inspector #2
503-708-3211
charlie_rouse@hotmail.com
Associated Master Inspectors
CCB#146715