VanEd Newslog

Understanding Real Estate Insurance can help to raise the bar of professionalism

Insurance requirements have become such an integral part of the real estate and loan transaction, that they must be included in any comprehensive discussion of real estate finance. Every purchase transaction will require title insurance, and every mortgage will require homeowners insurance. In some situations, lenders may also require flood insurance and/or mortgage insurance. Even purchasers of condominiums and townhouses will have insurance options to consider.

Real Estate professionals need to have a thorough knowledge of all types of insurances to properly guide their clients though the real estate and loan process. This will include Title and Homeowners Insurance requirements as well as mortgage, flood and potentially even credit life insurance. But what is the purpose of each of these?

Title insurance protects against loss from defects in the title to real property while homeowner’s insurance provides protection against damage to real estate improvements, damage to contents, and liability coverage. The National Flood Insurance Program (NFIP) provides property owners the opportunity to purchase flood insurance protection made available by the Federal Government. Mortgage insurance is strictly for the benefit of the lender and Credit Life Insurance pays off the loan with the death of the borrower.

Having an understanding of the various insurance products available to consumers will help the real estate professional remain the conduit of information for their clients. You can learn more about Insurance as it relates to your transactions and clients by registering today for online MRE course --> Insurance in Real Estate.

Designation Spotlight: TRC - Transnational Referral Certification

VanEd offers members access to the online TRC, Transnational Referral Certified course through REALTOR^® University. This course, managed by the National Association of REALTORS^® is designed to teach students the Transnational Referral system and how to increase business with international referrals.

The goal of the program is to teach the international referral system developed by NAR and the International Consortium of Real Estate Associations for making and receiving international referrals.

Students will learn the referral systems and pledge to follow a code of conduct in their business dealings. Also discussed throughout the program is making sure that compensation will be a part of each transaction. Learn more about the TRC, Transnational Referral Certification course by visiting www.vaned.com/TRC.

Notes from the Field: Help Clients with Environmental Sensitivities

Have you worked for clients with environmental sensitivities such as asthma or chemical allergies? Would you like to be able to provide them with accurate and helpful information on topics like indoor air quality issues?

It is estimated that people spend 90-95% of their time indoors. This makes indoor air quality very important to health.

Clients with environmental sensitivities (and even those without) will be impressed by the value you bring and will benefit tremendously from the resources you provide to help improve indoor air quality. You can read more online by clicking here, or forward the article from EcoBroker International to your customers.

This reliable green information is brought to you courtesy of the EcoBroker Certified(R) professional designation, currently offered by VanEd. Find out more at www.vaned.com/EcoBroker.

Q&A with Jennifer Allan-Hagedorn ~ Do I really have to do an open house?

We asked author Jennifer Allan to answer questions based on her teaching and experience in the real estate industry. Jennifer is also a regular contributor to Realty Times and RE/MAX Times.

Question: "Everyone knows that open houses aren't likely to sell the house. Do I really have to do one?"

JA: I think so, sorry. For many reasons, not the least of which is that your seller expects you to and any attempt you make to talk him out of it will make you appear, um, lazy. Even if the seller agrees to your face that open houses are a waste of time, inside he's wondering if you're really as committed to getting his house sold as you say you are. Open houses are one of the most visible things we do as real estate agents and a very easy way to keep a seller happy. Conversely, refusing to do one is a very easy way to make a seller UNhappy!

Here are three other reasons to hold your listing open, at least once:

1. You can gather feedback from the public to share with your seller,
2. You'll become more familiar with your listing and might notice features (or challenges) you didn't see before,
3. You might sell the house. You never know - but it's not as if you holding an open house will HURT your chances of getting it sold!

So, yeah, I think you oughta do it. What's the worst thing that could happen?



Guest Author Jennifer Allan-Hagedorn has authored five books and multiple courses designed to teach agents her Sell with Soul philosophy that centers on four interrelated principles: Respect, Competence, Confidence and Enthusiasm.  The latest release of her book is available in the VanEd bookstore. You can also visit her online at www.sellwithsoul.com or attend one of her free teleseminars on a variety of topics of interest to the real estate community.

Valuation Expo scheduled for November 7-9, 2011 in Las Vegas, NV #appraisal

LEARN, NETWORK, PROSPER!

2011 brings the 12th Valuation Expo to Las Vegas, back by popular demand. Join us November 7-9, 2011 at the Luxor Hotel, 3900 Las Vegas Blvd, South.

The 2011 ValExpo Conference is approved in many states for 14 hours of CE credit. No boring continuing education here—only relevant, enlightening CE for those who desire professional growth.

The opening session will be comprised of policy updates from Fannie Mae, Freddie Mac, Federal Housing Administration and the Veteran's Administration. These are the policy makers who have an amazing depth of experience and clarity of vision. In fact, the entire lineup of speakers at this years event will broaden your understanding of current and future markets as well as regulatory matters.

Don’t miss out!  Collateral Valuation is finally getting the focus it deserves. You cannot afford to sit on the sidelines and not be a part of the single most important annual event for valuation professionals! And this year brings about a new look and feel to make your expo experience even more enjoyable.

(Vaned offers CE for CO and MI, but they have most states approved through Appraisal Buzz..  except Illinois.)

For more information or to register online visit http://www.valuationexpo.com/.

Flood Insurance Reform Act of 2011 sits in Senate

The passage in the House of Representatives of the National Flood Insurance Reform Act of 2011, H.R. 1309, would be the 10th such extension in the last three years for the NFIP program. But for the first time during that stretch the program would receive a much needed overhaul.The extension would also set new rates for certain flood areas in order to bring the cost of Flood Insurance back in line with current actuaries.

To view the CRS Summary of the bill, Click Here

While the bill is now working its way through the Senate, it currently sits in the Committee on Banking, Housing, and Urban Affairs. The Congressional Budget Office (CBO) report found that with the changes in premiums and deductibles, there is no net change to the Federal budget with the passage of this bill. The bill passed the House on July 12th and was read in the Senate on July 27th after procedural motions.

If the Senate does not act on the bill the current extension would again lapse after September 30th, 2011.

Click Here to review the CBO summary of this bill

The National Association of REALTORS continues its Call to Action urging congress to pass the NFIP legislation prior to the end of September, stating that during the June 2010 lapse in Flood Insurance coverage (the last such lapse) there were 47,000 transactions that were either delayed or cancelled.

For more information on this NAR Call to Action, Click Here and follow VanEd on any of our social networks for up to the minute information on this important legislation. For more information on the NFIP you can also visit http://www.FloodSmart.gov.

Earn your Texas Real Estate License or complete SAE Education online

Van Education Center is proud to offer the course Real Estate Licensing program in Texas. Our Texas real estate pre-licensing packages are combinations of core courses that provide a complete background to prepare you for the Texas salesperson license exam.

Each package has been chosen to meet the most frequent needs of our students in terms of content and credit hours. If you feel that a different package would be useful to you, please give us a call and we can custom design a course package that will save you money over the cost of individual courses.

All packages include the reference textbook Texas Real Estate
by Charles J. Jacobus

 

 

VanEd is the leader in Distance Education, including Pre-License education in Colorado, Texas, Oklahoma and Nebraska. VanEd also offers Continuing Education online. For more information on our Texas Pre-License education, visit us online at http://www.vaned-texas.com/.

Package price includes all books & "Getting Started and Staying on Track" course FREE

Q&A with Jennifer Allan ~ Best system for sending out greeting cards

We asked author Jennifer Allan-Hagedorn to answer questions based on her teaching and experience in the real estate industry. Jennifer is also regular contributor to Realty Times and RE/MAX Times.  

Question: "What’s the best system for automatically sending out birthday and anniversary cards to my sphere of influence?"

JA: I love this question! We real estate agents love our systems, don’t we? Anything to make our stay-in-touch efforts more efficient!

  

Well, here’s the thing. “Efficient” doesn’t always equal “effective.” You can efficiently market to thousands of people at once, but that doesn’t mean that you’ve effectively marketed to anyone. This is nowhere more true than when you’re staying in touch with your sphere of influence.

  

Never, ever use your systems to DO the actual staying-in-touch with the people you know. It’s just fine if you rely on your systems to REMIND you to stay in touch, but always DO it yourself. Go to Wal-Mart, pick out a nice birthday or anniversary card, write a personal note and sign it. Hand-write the address, slap on a cute return address label and a nice stamp and put it in the mail with your very own hands. MUCH more effective!

Have a question you would like Jennifer to answer? Email it to info@vaned.com

 



Guest Author Jennifer Allan-Hagedorn has authored five books and multiple courses designed to teach agents her Sell with Soul philosophy that centers on four interrelated principles: Respect, Competence, Confidence and Enthusiasm.  The latest release of her book is available in the VanEd bookstore. You can also visit her online at www.sellwithsoul.com or attend one of her free teleseminars on a variety of topics of interest to the real estate community.

Have a safe and happy Labor Day weekend!

The Van Education Center offices will be closed through Labor Day, Steptember 5th, to allow our staff and instructors the opportunity to spend time with family and friends. We hope you are also enjoying the holiday weekend. We wish all those who work to make their lives better the best as we celebrate the American worker. Our offices will re-open on Tuesday September 6th.

If you are a student with questions, please post them on-line within the Q & A system for the fastest response. If you have a question about any course or service, please email us at info@vaned.com. Our team will get back to you as quickly as possible. You can also contact us on any of the social media platforms listed below and we'll be happy to respond.

Want to learn about the origins of Labor Day? Click here for the history on the Department of Labor web site!

Finance Friday: 3 Retirement Plans for the Self-Employed

Many of us are looking for ways to increase retirement savings as quickly as possible. If you happen to be self-employed, the solution can be as easy as changing the plan you are contributing to. The three retirement plans listed below are available to individuals that are self-employed and generally have higher contribution  limits than a Traditional or Roth IRA.

 

1. SIMPLE IRA - Savings Incentive Match Plan for Employees

 

A Simple IRA is well suited to small businesses and relatively easy to administrate.

• Eligibility: Employers may offer a SIMPLE IRA if they employ less than 100 people and offer no other retirement plans. Employees may participate if they earned at least $5,000 the preceding year.
• Employer contribution limit: 3 percent of employees' pay, matching, or 2 percent non-elective.
• Employee contribution limit: $11,500 for 2010.

 

2. SEP IRA - Simplified Employee Pension

 

A SEP IRA allows an employer, including self-employed individuals, to make contributions toward his or her own and their employees' retirement plans without high fees or complex administration.

• Eligibility: Any employer or self-employed person.
• Employer contribution limit: 25 percent of employees' net income up to $49,000.
• Employee contribution limit: Same as Traditional and Roth IRA limits.

 

3. Individual 401(k)

 

The Individual (k) has 401(k)-like options for sole proprietors or small business owners. The plan offers the highest contribution amounts and lower administration fees.

• Eligibility: Self-employed business owners with no employees other than a spouse.
• Employer contribution limit: 25 percent of compensation, or $49,000, whichever is less.
• Employee contribution limit: $16,500 of salary deferral

All of these plans can be used to purchase hard assets like real estate with a self-directed plan. 

 

Guest Authors Bill Humphrey and Catherine Wynne are Principals with Entrust New Direction IRA. Reach them online at www.newdirectionira.com.

Contact them for more information on how to determine the best plan for you and purchasing real estate with your retirement money.