In the state of Wisconsin, we only need to take a 72 hour course. You can take it online through the state, or what many others choose to do is to take it through an approved class. I chose to take it through Shorewest, but pay the extra money to purchase the class on a USB drive. It was about $300. I was given the textbook that the course uses and the Wisconsin law book for real estate. The textbook had quizzes at the end of each chapter and had two practice tests at the end. I'm a pretty good study, so listening to each class and following along in the books was just fine for me. In fact, I would multitask by listening to the classes in the car when I was driving somewhere, cooking, or doing laundry. It was very convenient for my lifestyle and learning style.
I took the test when I finished the course and was so nervous for the test. I'm a math person, and I actually calculated the number of questions I knew the answered correctly, calculated the probability of me guessing correctly on the others, added those together, and repeated until I felt I had a score comfortable enough to pass. In order to pass, you need to score at least a 75%. They do not tell you a grade. They just tell you if you passed or failed immediately after taking the test. The test itself was about $75.
Then I had to apply for a license with the state. That was about another $90 or so. Here's the great thing about having a license in real estate. You don't have to work for a broker in order to get paid. As long as you hold a license, it doesn't matter where in the United States you are, you can collect referral fees. For example, I have a bunch of friends in Texas since I lived there for half of my life. If my friends in Texas told me they wanted to find a real estate agent, and I called one in Texas and referred my friend to them, once my friend closed on a house I would get paid a referral commission from that agent. It would work the same if I was in Wisconsin referring a friend to another agent in Wisconsin. There is no standard rate for anything in real estate. Everything is always negotiable. However, if I were to put a number on the average referral commission, it's 25% of the commission. That being said, if a home sold in Wisconsin for $250,000 and the agent split their fee with their broker, the agent would get around $3,000 for the commission. If I referred the family to that agent, I would get $750 once the closing took place. Not bad for just giving up a name and phone number to someone else.
However, if you want to be licensed and practice, then you need to look at an agency. I chose Shorewest because of their training programs and the fact that they won't just let me sink or swim. They have a multitude of services that they provide their clients as well, making the buying/selling process easier on the clients. Here are some expenses that I had to also pay. There is E&O insurance. This basically is a cover your *** insurance policy so if you get sued by a client you have some representation. That costs $595 per year. I also had to pay to be a member of the GMAR. That stands for the Greater Milwaukee Association of Realtors. This in turn also allows me to be in the national association. That was much more expensive. My expenses were pro-rated, and if I recall correctly I paid about $700 for the membership. So it is expensive to start up, and truthfully, I haven't made a penny back yet. I'm only in my first month of officially hosting open houses and canvasing the neighborhoods in hopes of getting a listing. My co-workers assure me that I will do well in the industry though, because I remember things about people, and I'm personable. Fingers crossed!
If you're considering becoming a Realtor though, it's easy enough to do. You just have to take that first step and enroll in a class!
Saturday, August 12, 2017
For Sale, By Owner
As we like to call it in the real estate business, FSBOs are happening all over the place. I have known quite a few friends to either buy or sell a FSBO home. It works out well if there is a predetermined buyer, so no advertising is needed. My mom is the perfect example of that. She is currently in the process of selling her condo as a FSBO, and she has a few people already interested in buying it once she is officially ready to sell. I understand why she wants to sell on her own and not hire a Realtor (aka - me) to sell it for her.
She doesn't need it listed because she already has buyers lined up.
Why pay someone a commission when she knows she has the interest?
She knows her condo is at a fair market rate.
My mom did her research though. She used to be on the condo board, so she knows exactly who sold, in what year, and what amount the condo closed for. That is a benefit of being in a condo. She also knows there is interest in her unit, because she is very active in the community and has been vocal about the fact that she is interested in selling her condo.
For some people, it just works out that way.
If you plan on either buying or selling as a FSBO, here are some things to consider. The owner most likely works a full-time job. Being able to take appointments to see the house is at their convenience. That means, if someone wants to see the home when the owner is at work, they're going to have to wait. If you are great at word of mouth and are super social, it's easy to get it out that your house is for sale. Not everyone is like that though. By working with a Shorewest agent, we have over 900 agents that learn that your house is on the market typically before the house even goes into the MLS. If an agent has a buyer looking for a home with specifications similar to your house, that agent will line up a showing right away.
I encourage you to look on shorewest.com to look at the pictures of homes. See how they are taken. Some of them will be incredibly gorgeous angles that highlight features in the home. Others will be darker images, or you might even see the reflection of the person taking the picture in the mirror or glass. I can almost guarantee that the homes with pictures that are bright, at good angles, and show an uncluttered room are taken by professional photographers. That is something that a full-service broker can offer. As a FSBO, quite often there are no need for pictures unless you are taking an ad out in the newspaper. Even the smaller brokers that offer to just list the home in the MLS often won't take pictures, so you are literally paying just to have minimal exposure.
You might be paying attention to what homes in your neighborhood are selling for. That's great! That's what you should do! Keep in mind homes almost never sell for the exact price as listed. Even in today's market, a seller's market, it is rare to get the asking price, let alone above asking price, unless you are willing to price your home at a more competitive rate. Not only that, but pay attention to the homes that you are following to help you base your price. You might have ten homes on the block selling, but are they all three bedroom, two bathroom ranches with newly updated kitchens and attached garages? All homes are different in some way, so it is important to adjust your price based on the pluses and minuses of how your home compares to others. That is where a Realtor can help make those decisions. We will never come up with an offensive number, but we will always take a fair assessment of what homes similar to your's are actually selling for, and will always let you make the ultimate decision on what you would like to sell your home for. Our job is to educate you on what is fair - at least, that's what a good Realtor should do.
You might have some projects around the house that need to be completed (or started) before selling your house too. You can go online and check out reviews of painters, plumbers, electricians, etc. to see who can help you. However, if you don't know to look to see what might need work, or what will hurt the home from selling, it's nice to bring in a friend or neighbor to just get their opinion about the home. Realtors have something called Broker's Opens. We invite other Realtors in the area to come over and look at the house. Not only are they looking for their buyers, but they are also looking to see if there are areas where the homeowner can do some improvements and if they agree with the home pricing. (I often wonder if that's what they do on Flip or Flop on HGTV since sometimes they only have agents coming through the home once it is finished.)
You found a buyer. That's excellent news! There are still forms that need to be filled out for the state of Wisconsin. Those are easy enough to find on the state website, and they are honestly easy enough to fill out. There are video tutorials and blogs on how to fill out the paperwork needed. Just make sure it is specifically for Wisconsin though, as each state has their own requirements. Keep in mind that taxes are usually prorated based on the previous years' taxes.
Next comes the title company. Here's hoping you know where your title is, and that it is a clear title. If you have your title, many companies will give you a discount, because they only have to do research on the title for the time that you owned the property. If you do not own it, then they often will have to do research on the home dated back to when the land was first purchased and the home was built. If you have a clean title with no judgments or liens, then you are looking pretty good. However, if you have a judgement or lien, you may have to hire an attorney to help clean up the title. That is an extra expense that you may not have been planning on.
You can always look into offering a home warranty too. Realtors often work with companies that provide it as a option for a minimal expense. The one we have is great, because you don't pay for the warranty until the house actually closes, a one-year warranty is transferred to the buyer at closing, and you actually get to take advantage of the benefits as well while the home is on the market. I truly do not know the cost difference if you are a FSBO getting a home warranty though. That is something to look in to.
If you are planning to buy or sell as a FSBO, I hope this helped you. You truly can do it on your own, and I hope that there is some information that can help you market your home better. However, if you read this and realized there might be more to buying/selling a FSBO than you originally thought, I'd be happy to talk with you at no cost to you to see if a Realtor (aka - me) would be a good option for you.
414-366-3779
She doesn't need it listed because she already has buyers lined up.
Why pay someone a commission when she knows she has the interest?
She knows her condo is at a fair market rate.
My mom did her research though. She used to be on the condo board, so she knows exactly who sold, in what year, and what amount the condo closed for. That is a benefit of being in a condo. She also knows there is interest in her unit, because she is very active in the community and has been vocal about the fact that she is interested in selling her condo.
For some people, it just works out that way.
If you plan on either buying or selling as a FSBO, here are some things to consider. The owner most likely works a full-time job. Being able to take appointments to see the house is at their convenience. That means, if someone wants to see the home when the owner is at work, they're going to have to wait. If you are great at word of mouth and are super social, it's easy to get it out that your house is for sale. Not everyone is like that though. By working with a Shorewest agent, we have over 900 agents that learn that your house is on the market typically before the house even goes into the MLS. If an agent has a buyer looking for a home with specifications similar to your house, that agent will line up a showing right away.
I encourage you to look on shorewest.com to look at the pictures of homes. See how they are taken. Some of them will be incredibly gorgeous angles that highlight features in the home. Others will be darker images, or you might even see the reflection of the person taking the picture in the mirror or glass. I can almost guarantee that the homes with pictures that are bright, at good angles, and show an uncluttered room are taken by professional photographers. That is something that a full-service broker can offer. As a FSBO, quite often there are no need for pictures unless you are taking an ad out in the newspaper. Even the smaller brokers that offer to just list the home in the MLS often won't take pictures, so you are literally paying just to have minimal exposure.
You might be paying attention to what homes in your neighborhood are selling for. That's great! That's what you should do! Keep in mind homes almost never sell for the exact price as listed. Even in today's market, a seller's market, it is rare to get the asking price, let alone above asking price, unless you are willing to price your home at a more competitive rate. Not only that, but pay attention to the homes that you are following to help you base your price. You might have ten homes on the block selling, but are they all three bedroom, two bathroom ranches with newly updated kitchens and attached garages? All homes are different in some way, so it is important to adjust your price based on the pluses and minuses of how your home compares to others. That is where a Realtor can help make those decisions. We will never come up with an offensive number, but we will always take a fair assessment of what homes similar to your's are actually selling for, and will always let you make the ultimate decision on what you would like to sell your home for. Our job is to educate you on what is fair - at least, that's what a good Realtor should do.
You might have some projects around the house that need to be completed (or started) before selling your house too. You can go online and check out reviews of painters, plumbers, electricians, etc. to see who can help you. However, if you don't know to look to see what might need work, or what will hurt the home from selling, it's nice to bring in a friend or neighbor to just get their opinion about the home. Realtors have something called Broker's Opens. We invite other Realtors in the area to come over and look at the house. Not only are they looking for their buyers, but they are also looking to see if there are areas where the homeowner can do some improvements and if they agree with the home pricing. (I often wonder if that's what they do on Flip or Flop on HGTV since sometimes they only have agents coming through the home once it is finished.)
You found a buyer. That's excellent news! There are still forms that need to be filled out for the state of Wisconsin. Those are easy enough to find on the state website, and they are honestly easy enough to fill out. There are video tutorials and blogs on how to fill out the paperwork needed. Just make sure it is specifically for Wisconsin though, as each state has their own requirements. Keep in mind that taxes are usually prorated based on the previous years' taxes.
Next comes the title company. Here's hoping you know where your title is, and that it is a clear title. If you have your title, many companies will give you a discount, because they only have to do research on the title for the time that you owned the property. If you do not own it, then they often will have to do research on the home dated back to when the land was first purchased and the home was built. If you have a clean title with no judgments or liens, then you are looking pretty good. However, if you have a judgement or lien, you may have to hire an attorney to help clean up the title. That is an extra expense that you may not have been planning on.
You can always look into offering a home warranty too. Realtors often work with companies that provide it as a option for a minimal expense. The one we have is great, because you don't pay for the warranty until the house actually closes, a one-year warranty is transferred to the buyer at closing, and you actually get to take advantage of the benefits as well while the home is on the market. I truly do not know the cost difference if you are a FSBO getting a home warranty though. That is something to look in to.
If you are planning to buy or sell as a FSBO, I hope this helped you. You truly can do it on your own, and I hope that there is some information that can help you market your home better. However, if you read this and realized there might be more to buying/selling a FSBO than you originally thought, I'd be happy to talk with you at no cost to you to see if a Realtor (aka - me) would be a good option for you.
414-366-3779
Sunday, August 6, 2017
If it can happen, it will happen - just laugh it off
Real estate can have its ups and downs. Here are a few things that have happened to me that could honestly happen to anyone in any career.
Picture Day: It was the second day of my sales training through Shorewest, and we had a professional photographer come in to take our photos for our website and business cards. Of course, the guys could roll out of bed and just put on their best shirt and tie, and they're pretty much ready to go. Guys, we're jealous. The ladies of the class took the extra time that morning to straighten or curl their hair, make their make-up look flawless, and found their best photogenic outfit to wear. It was like senior pictures all over again, but with real estate agents. That day, it rained. A drizzle would have been one thing, but this was the type of rain that would make you look like you had just gotten out of the shower running from your car to the building. Needless to say, the flawless hair and make-up had to be touched up once we got into the building and ready for pictures. Still, we all smiled and laughed about how if it was going to rain that hard, it would be on picture day.
Open House: If you're like me, quite often you have to eat on the run. On a Saturday morning, I was headed to an open house at a beautiful property. It was definitely the most expensive property I have shown to date, and I wanted to make sure that my outfit fit the property. I wore a summer dress with white, olive, and navy horizontal stripes on it. On my way to the house, I decided to stop to pick up a maple-iced donut for breakfast since I knew I wouldn't have a chance to eat for a few hours. No sooner than I take my first bite, the maple icing melts and drops on to a white stripe on my dress - not once, but twice. Luckily, I was able to clean it off my dress without a stain, but it definitely taught me to bring a spare set of clothes along to leave in my car just in case the accident happens where I spill something that I can't get out of my clothing right away. To top it off, later that evening I spilled BBQ sauce on another white stripe, but this time I had a Tide stick to help clean up that mess!
Still Smiling: We all have those bad days where it feels there is a black cloud over our heads. I once woke up to find a very negative remark about the fact that I was advertising for an open house. It was just one person who didn't like that I advertised where I did, and no one else seemed to mind. Still, it was something that I was hurt by. Since I was preoccupied about the comment, I forgot to lock my front door on my way to work. Luckily, I remembered just as I was pulling out of the driveway, so I went back and locked my door. When I got to the office (about a half hour drive), I realized that I had left my lunch at home. Well, no problem. I guess I can just run across the street for lunch on my break. I opened my car door and grabbed my work bag. About 25 post cards addressed to clients fell out and on to the ground in the parking lot. I picked those up, put them back in my bag, and started to walk into the office. As I'm putting my keys in my purse, I managed to set off my car alarm - all this happening while the president of our company is in the parking lot. By the time I am in the office, I have only been awake for about an hour and a half. Fast forward to lunch, and I discover it is a working lunch because we have a speaker coming in. Vending machine lunch it is then. I go to open up my soda, and the pop top ring literally broke off right after I was able to get the tiniest crack in the can. That didn't stop me though. I grabbed a cup and tipped the can upside-down to get the soda out.
My co-workers couldn't believe that everything I went through that day I was still smiling, laughing, and joking about it. The words one of my teachers spoke to me in high school still speak to me today in situations like that. If it won't matter in one day, one week, or even a month from now, there is no reason to let it upset you.
Picture Day: It was the second day of my sales training through Shorewest, and we had a professional photographer come in to take our photos for our website and business cards. Of course, the guys could roll out of bed and just put on their best shirt and tie, and they're pretty much ready to go. Guys, we're jealous. The ladies of the class took the extra time that morning to straighten or curl their hair, make their make-up look flawless, and found their best photogenic outfit to wear. It was like senior pictures all over again, but with real estate agents. That day, it rained. A drizzle would have been one thing, but this was the type of rain that would make you look like you had just gotten out of the shower running from your car to the building. Needless to say, the flawless hair and make-up had to be touched up once we got into the building and ready for pictures. Still, we all smiled and laughed about how if it was going to rain that hard, it would be on picture day.
Open House: If you're like me, quite often you have to eat on the run. On a Saturday morning, I was headed to an open house at a beautiful property. It was definitely the most expensive property I have shown to date, and I wanted to make sure that my outfit fit the property. I wore a summer dress with white, olive, and navy horizontal stripes on it. On my way to the house, I decided to stop to pick up a maple-iced donut for breakfast since I knew I wouldn't have a chance to eat for a few hours. No sooner than I take my first bite, the maple icing melts and drops on to a white stripe on my dress - not once, but twice. Luckily, I was able to clean it off my dress without a stain, but it definitely taught me to bring a spare set of clothes along to leave in my car just in case the accident happens where I spill something that I can't get out of my clothing right away. To top it off, later that evening I spilled BBQ sauce on another white stripe, but this time I had a Tide stick to help clean up that mess!
Still Smiling: We all have those bad days where it feels there is a black cloud over our heads. I once woke up to find a very negative remark about the fact that I was advertising for an open house. It was just one person who didn't like that I advertised where I did, and no one else seemed to mind. Still, it was something that I was hurt by. Since I was preoccupied about the comment, I forgot to lock my front door on my way to work. Luckily, I remembered just as I was pulling out of the driveway, so I went back and locked my door. When I got to the office (about a half hour drive), I realized that I had left my lunch at home. Well, no problem. I guess I can just run across the street for lunch on my break. I opened my car door and grabbed my work bag. About 25 post cards addressed to clients fell out and on to the ground in the parking lot. I picked those up, put them back in my bag, and started to walk into the office. As I'm putting my keys in my purse, I managed to set off my car alarm - all this happening while the president of our company is in the parking lot. By the time I am in the office, I have only been awake for about an hour and a half. Fast forward to lunch, and I discover it is a working lunch because we have a speaker coming in. Vending machine lunch it is then. I go to open up my soda, and the pop top ring literally broke off right after I was able to get the tiniest crack in the can. That didn't stop me though. I grabbed a cup and tipped the can upside-down to get the soda out.
My co-workers couldn't believe that everything I went through that day I was still smiling, laughing, and joking about it. The words one of my teachers spoke to me in high school still speak to me today in situations like that. If it won't matter in one day, one week, or even a month from now, there is no reason to let it upset you.
Your house was perfect for living, now you have to get it ready for selling
Our favorite room of the house is the three-seasons room. Our children have turned it into a play area, and my spouse and I like to enjoy sitting out there to watch the sunset. It is probably our most used room in the house. I love the bathroom as well. There is so much open storage, so we are able to store all of the extra shampoo and conditioner we have, because I'm huge into buying on sale and using coupons. We also have a large back yard that our dog loves to play in. His toys are all over the yard, because the kids love to go outside and play with him when they get home from school. It's been a wonderful home to live in, but we have decided to move since we just have different needs as far as a home is concerned. What do we have to do to get ready to sell our house?
Your house was perfect for living, now you have to get it ready for selling. What does that mean? Sometimes, it does not cost much at all to get it ready to sell. Ask yourself what attracted you to the home when you first looked at it. You walked into the three-seasons room, saw the beautiful hardwood floors, the empty space where you could imagine your family there, and the gorgeous view. What would it take to get that room back to what it looked like when you first saw it? If it is now a play area, consider getting storage containers to confine what the children are using to a small and tidy space. If you placed a rug down, remove the rug to show off those nice hardwood floors. Wipe down the windows to make sure that the view is as beautiful as possible.
The bathroom with all the open storage might be a little more tricky. Pack up what you know you won't be using between now and your planned move. Keep your moving boxes confined to one location of the home if possible. If you have cabinet storage, consider moving items in plan view in the open storage to a cabinet or a drawer. Even your toothbrush and toothpaste should be moved into a drawer or cabinet. The idea here is to minimize items in the bathroom that are in plain sight.
Same thing with the large back yard. Place all of the dog toys in a storage container outside to show off the space of the yard. Make sure the bushes and the trees are well maintained. Trimming them once every couple of weeks will not only make it aesthetically pleasing to buyers, but it is also easier to keep the shape of them since not as much time has passed.
The objective is to "declutter." This is a term real estate agents use often when talking with sellers. Basically, anything you don't think you will need before the move, pack up and put away. We are not asking you to live on paper plates and plastic ware (unless you choose to), but instead of having the full set of dishes in your cabinets, only keep what you know you will use on a regular basis. Any knickknacks around the house will have to be packed up anyway for the move. They add personality, but it is your personality - which might not be the same as the buyer's. Family photos are also a hard one to pack, but the objective is to get your house sold. Some people cannot overlook your family living there, especially if they have a face to go with the house. Even having items such as your coffee maker, toaster, and bread maker on the kitchen counter can make the kitchen counter space look smaller, so it is important to keep those items out of sight if you plan to use them while your home is on the market.
Just a few tips on how to prepare your home for getting ready to sell! If you have further questions about what you can do to help prepare your home to list on the market, please feel free to call me at 414-366-3779 or email me at afrankovis@shorewest.com
Your house was perfect for living, now you have to get it ready for selling. What does that mean? Sometimes, it does not cost much at all to get it ready to sell. Ask yourself what attracted you to the home when you first looked at it. You walked into the three-seasons room, saw the beautiful hardwood floors, the empty space where you could imagine your family there, and the gorgeous view. What would it take to get that room back to what it looked like when you first saw it? If it is now a play area, consider getting storage containers to confine what the children are using to a small and tidy space. If you placed a rug down, remove the rug to show off those nice hardwood floors. Wipe down the windows to make sure that the view is as beautiful as possible.
The bathroom with all the open storage might be a little more tricky. Pack up what you know you won't be using between now and your planned move. Keep your moving boxes confined to one location of the home if possible. If you have cabinet storage, consider moving items in plan view in the open storage to a cabinet or a drawer. Even your toothbrush and toothpaste should be moved into a drawer or cabinet. The idea here is to minimize items in the bathroom that are in plain sight.
Same thing with the large back yard. Place all of the dog toys in a storage container outside to show off the space of the yard. Make sure the bushes and the trees are well maintained. Trimming them once every couple of weeks will not only make it aesthetically pleasing to buyers, but it is also easier to keep the shape of them since not as much time has passed.
The objective is to "declutter." This is a term real estate agents use often when talking with sellers. Basically, anything you don't think you will need before the move, pack up and put away. We are not asking you to live on paper plates and plastic ware (unless you choose to), but instead of having the full set of dishes in your cabinets, only keep what you know you will use on a regular basis. Any knickknacks around the house will have to be packed up anyway for the move. They add personality, but it is your personality - which might not be the same as the buyer's. Family photos are also a hard one to pack, but the objective is to get your house sold. Some people cannot overlook your family living there, especially if they have a face to go with the house. Even having items such as your coffee maker, toaster, and bread maker on the kitchen counter can make the kitchen counter space look smaller, so it is important to keep those items out of sight if you plan to use them while your home is on the market.
Just a few tips on how to prepare your home for getting ready to sell! If you have further questions about what you can do to help prepare your home to list on the market, please feel free to call me at 414-366-3779 or email me at afrankovis@shorewest.com
Introduction
Thank you for checking out my blog! I am a Realtor at Shorewest (Wisconsin's #1 Brokerage), and this is a blog not only about real estate, but also about events in and around Southeast Wisconsin. The best part is that it's free information. All I ask is that you share my blog if you like it. If there is something you are interested in knowing more about, I encourage you to comment. Your feedback is important for me to know what you would like to hear about.
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