VanEd Newslog

Happy New Year and Thank You from VanEd

“There are souls in this world which have the gift of finding joy everywhere and of leaving it behind them when they go." - Frederick Faber, British hymn writer and theologian

The staff and I want to wish you and yours happiness and success in the coming year. And as this year prepares its farewell, I want you to know that we truly appreciate your business. Thank you for your continued support.

Not unlike many of your businesses we also have faced challenges within the industry.  New laws, rules and regulations were enacted that continue to change the landscape of the real estate, appraisal and mortgage industries, not to mention online education.  I want you to know that as I look ahead I see great opportunity, and in 2012 we will continue to embrace our students and affiliates and encourage them to be successful.

Thank you for calling us, visiting our website, becoming a fan on Facebook and LinkedIn.  Thank you for reading our NewsLog or following us on Twitter.  We greatly appreciate you being our customer and look forward to being your resource far into the future.

Our entire team is dedicated to serving the best interests of our students, so if you have any questions or ideas for how we might better serve you, feel free to contact us.  As always, we're here to help.

Here's to your success and peace in the coming year. May you find, and leave, Joy wherever you go.

Sincerely,

C. Vann Hilty, CRS, CDEI
Director
Van Education Center
www.vaned.com

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TREC announces changes to Broker Licensing for Texas Licensees in 2012

Below is a copy of the TREC announcment letter announcing the changes. This can also be found online at http://bit.ly/vjyctS.

New Year Brings Big Changes for Broker Applicants

 

New rules effective in January 1, 2012 are good news for consumers

At its October meeting the Commission adopted rules that change the requirements to obtain a real estate broker license in the state of Texas beginning January 1, 2012. Amendments to the rules driven by the passage of Senate Bill 747 establish requirements for "active experience" to qualify for a broker license.

 

The Commission approved these changes to strengthen the qualifications for becoming a broker in the state of Texas. In the past, in addition to certain education and examination requirements, two years of "active" status as a sales agent were needed to qualify for a broker license, regardless of whether the sales agent had gained any actual experience during the two year period. As of January 1, an applicant for a broker license will need to have four years of "active experience" to apply for a license. A point system will be used to quantify active experience in real estate transactions. Broker applicants will be required to document that they have obtained at least 3,600 points of active experience with evidence of specific transactions and a verification statement from the applicant’s sponsoring broker at the time the experience was earned. A complete explanation of the point system can be found on the Commission’s website.

Administrator Oldmixon echoed Chair Wukasch’s sentiments by stating, "As a result of these rule changes, consumers in the state of Texas can be more confident when working with real estate brokers in the future. These new requirements will ensure that real estate brokers will have the broad based knowledge that comes from transactional experience."

An applicant must document experience in each of four years out of the five-year period immediately before the application is filed, or be able to satisfy these requirements by the end of one year after the application is filed. While an applicant has up to a year after filing an application to meet all education and experience requirements, an applicant cannot take the broker examination until all education and experience requirements have been met.

Under these rule changes, as of January 1, a previous broker license holder whose license has been expired more than two years may only apply for reinstatement of the license if the applicant meets all the new requirements to apply for a broker license as described above. If these requirements cannot be met, the applicant must apply for a salesperson license.

True to its core mission, the Real Estate Commission continues to protect and serve the citizens of Texas. The Commission's programs of education, licensing and regulation ensure that real estate service providers are competent and trustworthy. More information on the Commission and its programs can be found at http://www.trec.texas.gov.



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Land Conservation - Incentives, Acquisitions & Easements

Land conservation - the practice of holding land open and free of development – has become a significant real estate activity in the United States. Since 1988 voters across the country have approved spending around $54 billion on land conservation in state and local ballot measures, according to the Trust for Public Land. Additional private money is spent on conservation through non-profit land trusts and conservation by individuals and corporations. Land conservation has become an important component of smart growth efforts, as well as for environmental protection and recreational opportunities.

Understanding the purpose, various techniques available and other issues associated with land conservation is essential for real estate and appraisal professionals. Land owners may receive benefits for conserving their land, but must also be aware of costs and potential issues. Sale of land for conservation may have additional benefits. Land conservation programs can have significant impacts on real estate markets, valuation, and can affect the use of adjacent land as well as the land being conserved. Implications for long term maintenance cost, valuation and taxes may be complex and substantial.

Many land conservation actions attempt to preserve the land in a natural condition to achieve environmental benefits. Other approaches may intend to preserve agricultural use rather than a natural environment. In any case, the overriding objective is usually to work cooperatively with property owners to limit urban development in order to achieve other public goals.

Land conservation actions can be as simple as an individual landowner deciding not to develop land, but instead preserve the natural environment. Land conservation can occur with relatively simple easements on private property that prevent future development.  Easements can be sold, exchanged for other land, provide tax reductions, or granted for a variety of other considerations. Conservation can also occur through fee simple purchase of land. Purchase might be based on the full market value or for another negotiated value allowing some continued use or tenancy by the seller.

Government agencies are typically involved in land conservation efforts. Other non-governmental organizations (NGOs), such as non-profit land trusts and other conservation organizations may be partly or solely involved. In more complex circumstances, all the governmental and NGO entities and available tools may be used in some combination to conserve larger properties or areas.

The basic conservation tools are:

Personal action – efforts on the part of individual land owners to conserve their land because it benefits quality of life for themselves and the public. Historically, farming and ranching has maintained open land as an inherent part of the land use. Today, some individuals are acquiring and operating farms and ranches specifically for conservation purposes. Ted Turner is perhaps the best known, and is the largest private landowner in the United States. His working ranches are economically viable businesses that simultaneously support conservation goals, including water resource management, reforestation and reintroduction of native species.

Land acquisition – fee simple purchase of the land by government, land trusts, other conservation organizations or voluntary donation by the property owner. An acquisition example is the Richardson’s Bay Sanctuary, located on the edge of San Francisco Bay in California. The Audubon Society purchased submerged and upland areas to provide habitat for wildlife and migratory water birds.

Conservation easements – these are legally binding agreements that limit uses and development of a property and protecting the ecological values of the property for public benefit. This is accomplished through either through voluntary sale by the property owner or grant. Conservation easements are the most commonly used conservation tool. Anyone interested in participating in a conservation easement should carefully review the conservation easement information found through state and local government resources, including a detailed review of the policies and procedures.

Financial incentives – other benefits provided by government to the property owner to conserve the land, such as special tax districts for open lands, tax rate reductions or deductions, or allowances to transfer the development potential to another location. Financial incentives typically work in combination with other tools such as conservation easements. Financial incentives such as reduction of inheritance taxes may be essential for land owners to maintain an existing use, such as farming or ranching and pass the land on to descendants.

Risks Associated With Land Conservation

All parties involved in land conservation assume some risks, such as:

• Property owners entering into conservation easements limit the future use of the land; in most cases they won’t be able to change their minds later. Tax benefits of conservation might be initially attractive, but future legislation could change those benefits. Depending on the structure of the easement, the land owner could be responsible for some maintenance with unanticipated costs.
• The easement holder, such as a land trust, pays the cost of acquiring the easement, and may assume obligations to enforce the easement and, again depending on the specific easement, long term maintenance. They run the risk of unanticipated long term costs, and maintaining a cooperative working relationship with the current and future land owners. Unanticipated impacts to the easement area might reduce the value of the easement.
• The public may risk similar unanticipated long term costs, as well as affects on tax base and revenues. In some cases acquisition of open space land may unexpectedly limit some future options if adequate long range planning is not first done.

Management of these and other risks indicates that all parties should exercise caution, and consult with appropriate professionals. The services of attorneys, accountants, appraisers, REALTORS® and land planners may be needed, as well as coordination with government agencies and conservation organizations. The unique attributes and complexity of land conversation issues highlights the need for experienced professionals.

Summary

• Planning for large scale conservation must consider implications to the local tax base and revenue; if public land acquisition is the preferred approach, the tax base may shrink with less private land, but remaining private land values may increase, providing an offset.
• Property owners donating conservation easements may qualify for property tax reductions and income tax deductions; they should be cautious about ensuring they meet all applicable guidelines for claiming tax benefits.
• Conflicts can result between active and passive recreational uses of open space; conservation actions should clearly identify the purposes of conservation and the uses consistent with those purposes in order to avoid conflict.
• Long term maintenance of open space is a significant cost consideration that should be included in any conservation action.

Make sure that any professional you are working with is well educated in both the process and the law before engaging them in any conservation easement action.

Real Estate Professionals and Land Planners may want to learn more about dealing with Land Conservation issues through the VanEd Continuing Education course Land Conservation.

The Go-Giver Real Estate Agent

One day in mid-2010, three different people suggested I read The Go-Giver by Bob Burg and John David Mann. It wasn’t the first time I’d heard that, but on this particular day, I heard it three times.

I took it as a sign, fired up the Kindle and forked over the $18.99 for immediate upload to my digital reader. Since I was traveling, I was able to dive right in to find out what all the fuss was about.

Wow.

If you haven’t read The Go-Giver, or the sequel, Go-Givers Sell More…well, do! But in case you haven’t yet had the pleasure, the basic premise of the Go-Giver philosophy is that, in order to be successful in a sales career (or any career, really, or truthfully, in life itself!), you’ll be far better off putting other people’s needs, wants and desires ahead of your own. Not just because it’s the polite thing to do (that good ol’ Golden Rule and all), but because it’s simply a smart way to live and love. And yes, succeed.

The authors, Mr. Mann and Mr. Burg, focus primarily on salespeople perhaps because traditional sales training and wisdom teaches its practitioners just the opposite—what one might call a Go-TAKER philosophy. That it’s all about the salesperson—her wants, needs and desires—and how she can best convince her target/prospect/victim that he wants what she, the salesperson, wants him to want!

But Misters Mann and Burg turn that paradigm on its head. They insist (brilliantly and persuasively) that when you make your approach all about the other person, when you truly and sincerely put their needs, wants and desires above your own, you’re pretty darned likely to come out ahead. Not ahead of the other person, mind you, but ahead of where you’d be if you’d made it all about you.

Here’s the thing. When you are self-employed, you are dependent on the good will, trust and support of other people who inhabit the planet with you. You can’t be a successful entrepreneur all by yourself; you need customers, who are in all likelihood going to be human beings. ;-].

Therefore, it only makes sense that you’d want to behave in ways that will make those other human beings like and trust you—which is best accomplished, not with aggressive sales pitches, but by treating them the way they want to be treated.

In other words, “It’s not about you, it’s about them.”

So, how can we apply Go-Giver principles to a real estate business?

We’re can create a message and delivery of that message that will be welcomed by others… instead of assaulting others with sales pitches they’d rather not be assaulted by.

We can take the time to prove ourselves deserving of a new buyer’s commitment… instead of pressuring them to agree to an exclusive arrangement before they’re ready.

We can provide a clear, coherent and persuasive explanation of our commission structure to sellers… instead of defensively rebuffing their reasonable requests to justify our fees.

We can approach For Sale By Owners with a sincere desire to help… instead of insulting their intelligence with an arsenal of intimidating material intended to make them feel stupid.

We can inspire our friends to refer to us because we’re the best real estate agents they know… instead of repeatedly pestering them for business and referrals.

We can inspire open house visitors to want us to have their contact information… instead of tricking them into providing it.

We can help our buyers decide if now is the right time, for them, to buy a home… instead of looking for ways to push them off the fence…

Treating others the way you’d like to be treated IS a viable business strategy, and the Go-Giver books demonstrate that philosophy beautifully. Seriously, it’s good stuff. Career-changing stuff. Which makes it life-changing stuff...

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.

From all of us at VanEd we wish you a Happy Holiday weekend

From all of us at VanEd, we wish you and yours the happiest of Holiday Seasons.

Van Education Center offices will be closed December 24th, 25th and 26th. We will be open again on December 27th. 

For students working online, post questions in the Q & A's. You may also search the Q & A's to see if your question has already been answered there!

Happy Holidays!

For up to the minute industry information or to receive special promotionand discount offers connect with us online at any of our other social networks listed below!

Finance Friday: The Congress that stole Christmas (what? too Grinchy?)

Once again the country is being held hostage by congress. Most Americans will get a lump of coal in their Christmas stocking. Postponing decisions or votes keeps us in a constant state of confusion (remember the VA funding fee fiasco from November). The National Flood Insurance Program (NFIP), which was due to expire on December 16th, was temporarly extended through May 2012 last week. Failure to extend this program would have made it impossible to fund loans in a flood zone. This was due to be extended for five years, but it will be revisited next spring.

The payroll tax debate is a total farce. Instead of debating the cost and benefits of this tax cut, and ways to fund it, the bills are loaded down with other garbage that have no relationship to the issue. Most members of congress don't think they should ever raise taxes on their big doners but they have no problem increasing fees for the average American. Tax increases BAD, fee increases GOOD. Any benefit to the average American has to be accompanied by an even bigger benefit to corporate doners.

Even if the payroll tax extension is passed, the decrease will come at a big cost, both socially and economically. They want to increase fees for mortgages sold to Fannie Mae and Freddie Mac (an average of $20.00 per month for a $250,000 loan) to help pay for this cut.

They want to give their doners another year of business tax credits for the purchase of new machinery while they want to cut unemployment benefits from 99 weeks to 79 weeks.

They want to block any effort to restrict emmisions from industrial boilers while they reduce the availability of free television. Included in this bill is the right to sell off television band width, which will reduce the amount of available channels (turn free TV to pay TV).

They want the Keystone Excel Pipeline to be permitted which will generate millions of dollars for their doners while they freeze Federal employee wages and require them to pay more for their health care and pensions.

They want to require applicants for assistance to be drug tested. In my opinion, we should require mandatory drug testing for all members of congress (they must be high on something to continue promoting this level of stupidity).

Guest Author Randy Kelly is a Mortgage Banker and Finance Author with Peoples Mortgage. You can reach him online anytime by clicking here.

Appraisers discuss Green building and Value

During the Fall meetings of the Appraisal Foundation Advisory Council (TAFAC) a session was filmed that discussed Green Building and what issues are raised when it comes time to determine the value of Green.

Appraisers in many cases have trouble placing a value on individual green products and features, but where will the market lead? What is going on now? Watch the video linked below from The Appraisal Foundation to hear what the panelists think.

Click Here to play video

Check out our 100% money back guarantee on Real Estate Pre-License course in Colorado

Van Education Center, the leader in online real estate education, is offering a money back pass guarantee to Colorado Pre-License students. Students can rest assured that the VanEd Colorado real estate licensing program will prepare them not only to pass the state exam but also to be successful in their new career.

VanEd is the oldest online education provider in Colorado, and is the first provider in Colorado to offer a full 100% money back guarantee. Program requirements can be found online and prospective students may still enroll for a Free 5-day trial of the program with no obligation. Want to learn more about our money back guarantee program? Check out the details online by clicking here.

To learn more about VanEd's new 100% Money Back Pass Guarantee, or to learn more about online Colorado Real Estate education, visit www.vaned.com. Take a look and find out why the most successful people in real estate choose VanEd.

For up to the minute industry information or to receive special promotionand discount offers connect with us online at any of our other social networks listed below!

The Confident Rookie Series - SECRET #10 - What to Say When You Don't Know the Answer

A little while ago, a new agent came into my office all flustered. He'd been out with his buyers over the weekend and felt that he'd made a fool of himself by not being able to intelligently answer his buyers' questions. It almost sounded as if he was ready to throw in the towel - at least until he knew more about what he was doing!

Calm down, I told him. First, trust that it will happen to you thru-out your career. Don't panic. Don't make stuff up, but don't panic.

I asked him what the questions were that he couldn't answer. And guess what? Most of the questions were really good ones - that is - chances are that even a more experienced agent wouldn't have known the answers either! But the problem with being new is that you don't know what you SHOULD know and so you figure you should know it all.

This is where not panicking comes in.

Take a deep breath and really think about the question. Is this something you should or could know?

For example, let's say you're showing lofts downtown and the buyer asks: "What are the pet restrictions in this building?" Well, unless you live in the building yourself or unless you make a habit of memorizing condo rules & regulations, you couldn't possibly know the answer. Or how about if a buyer asks you where the property lines are on a rural property? If you aren't the listing agent, this is probably not something you can accurately answer.

This doesn't mean it's not your job to get the answer - it is. But if you don't know the answer off the top of your head, it's okay!

So, how do you respond?

First, DO NOT use that tired old line "I don't know the answer, but I can certainly find out for you!" in that prissy, almost defensive voice. You know what I'm talking about don't you? That cheerful, oh-so-helpful voice that clearly tells your client that you don't have a clue, but wish you did?

Instead, try this. Relax, and VERY casually say "Hmmmm, I don't know. Lemme find out." Write down the question, and move on.

Or, how about this? "Wow - I've never gotten that question before. I'm looking forward to finding out the answer!" Write it down, and move on.

Or, in the above scenarios when you're working with a buyer and he has questions about the property you're looking at, take control and call the listing agent immediately.  That will make a great impression on the buyer.

Of course, sometimes you'll be asked a question you should know the answer to and you don't. This is happening to me more often lately as I venture deeper into the world of foreclosures & short sales. My stock answer has become "Y'know, I should know the answer to that, but I don't. I'll find out for you." This somewhat self-deprecating approach seems to be working - at least - no one's fired me yet for saying it!

Subscribe to "Confidence Builders for Rookie Real Estate Agents" (a free newsletter)

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.

Finance Friday ~ Holiday Edition: ♫ CREDIT SCORES ARE COMING TO TOWN ♫



The song below should be sung to the tune of "Santa Claus is Coming to Town" - have a little fun! Click this link to play the tune and sing along! ♫ Download Stclaus ♫ 
                    

Oh, you better watch out,

You better not lie,

You better not charge,

I'm telling you why.

 

Credit Scores are coming to town.

 

They know if you've been shopping,

They know when you've been late.

They know if you have paid on time,

Pay your bills for goodness sake.

Oh, you better watch out,

You better not lie,

You better not charge,

I'm telling you why.

 

Credit scores are coming to town.

 

They know if you've been bankrupt,

Foreclosures cannot hide.

If you've had collections,

Your loan will be denied.

Oh, you better watch out,

You better not lie,

You better not charge,

I'm telling you why.

 

Credit scores are coming to town.

 

They know when your delinquent,

They know how much you owe.

You won't get a mortgage,

If your credit score's too low.

 

Oh, you better watch out,

You better not lie,

You better not charge,

I'm telling you why.

 

Credit scores are coming to town.

 

Guest Author Randy Kelly is a Mortgage Banker and Finance Author with Peoples Mortgage. You can reach him online anytime by clicking here.