Michael 's Blog

Equal Opportunity for All

Michael Fair (Illinois Academy of Real Estate) — Thu, 24 Sep 2009 13:08:12 -0500

Have you noticed the "Equal Housing Opportunity" logo at the bottom of the Active Rain Blog Page
(Good job people) or do you just take it for granted.

I'm sure that most of us understand the basics of equal opportunity and fair housing and would never intentionally violate the law, however as I surf the net and visit various websites, I have noticed a common area of non-compliance with HUD advertising guidelines.

It is important for both broker owners and associated licensees to understand that advertising has been defined as any media that promotes an item for sale.

Do you put or link listings to Facebook? Advertising. My Space? Advertising. Twitter? Advertising. company or personal web page? Advertising. Blog? Advertising. Do you use the equal opportunity logo or language? If not, you probably should.

Broker Owners, do you have a written policy regarding advertising and advertising requirements that your associated licensees understand and comply with? If not, you probably should.

Just a little tip I hope you find helpful. Mike Fair, Illinois Academy of Real Estate, an equal opportunity educator.

Illinois Broker Management Continuing Education Classes Scheduled

Michael Fair (Illinois Academy of Real Estate) — Tue, 22 Sep 2009 16:55:56 -0500

New and updated for the 2010 Illinois Broker License Renewal!

These class sessions provide you with the knowledge and tools necessary to be an effective real estate broker in the state of Illinois.

Class includes:

Broker Licensing and Responsibility
Agency Agreements and Issues
Office Management and Escrow Responsibilities
Risk Reduction
Disciplinary Actions

Saturday, November 14, 2009
Aurora/Naperville
Illinois Academy of Real Estate
318 N. Lake Street, Aurora IL 60506

Class meets from 9:00 AM to 4:00 PM with test immediately following and the Instructor is Mike Fair. The course fee is $125.00 or $110.00 for qualified students and includes course material and the administrative fee required by the Illinois Real Estate education Foundation. Click here for registration. information.

Questions? Contact Mike@IllinoisAcademyofRealEstate.com

Mike Fair, Director
Illinois Academy of Real Estate

Please Don't Banish Me for My Heresay

Michael Fair (Illinois Academy of Real Estate) — Tue, 11 Aug 2009 16:43:23 -0500

It appears to me that a large percentage of the blog postings dealing with the challenges of the short sale, criticize the lender for being slow and sometimes almost unwilling to cooperate with the homeowner requesting a short sale. I have an uneasy feeling that there is something inherently wrong with this picture.

Before I go any further, there are several points I want to make clear:

I am not defending the banking industry and their response to short sales
I empathize and sympathize with the homeowner who is engulfed by a financial crisis not of his own making
I am not criticizing or judging anyone's business practices unless they are unethical and/or ileagal
I have no idea as to an equitable solution for those trapped in distressful financial situations

Maybe I'm wrong, but I sense a spirit of entitlement that I do not believe is justifiable.

Let me use myself as an example. John, a friend comes to me asks to borrow $10.00. He's a little short this month, but he promises me that he will repay me next month. On the basis of that promise I lend him the money.

Payday of the next month comes, but I don't hear from my friend. I have my own bills to pay, and the $10.00 would sure help! I call him at home, I leave messages, I e-mail, but no response. I just can't get in touch with him.

A few days later, I receive a call from a mutual friend, Bill. He tells me that John had some unexpected expenses and was laid off and was unable to repay the $10.00 he had promised to pay. Bill then tells me that if I am willing to accept $2.00 and forgive the debt, that John can pay that $2.00.

I tell Bill to tell John that that he promised to pay me $10.00 and that's what I expect. Bill tells me that it is really in my best interest to accept the $2.00. I can accept the $2.00 or take him to court. Hmmm? filing fees $25.00, time off work, I could face a$50.00 - $100.00 loss to take him to court. Maybe $2.00 is better than nothing, but I'll tell you one thing, I will never ever loan John money again and will tell all of my friends not to loan him money, because he does not keep his word and cannot be trusted.

Maybe I will take him to court. I might not get my money, but maybe I can write the $50.00 off on my taxes as a bad debt.

Granted, that is an extremely simplified example, but why in the world do John and Bill feel that I should have to accept less than the $10.00 I was promised. I would think that if asked, it would be up to me as to whether or not I accepted and under what terms I accepted without being accused of being unreasonable or uncooperative and bad mouthed for a determination not to agree.

Maybe I'm wrong, but if the lender did not in some way take advantage of the borrower, the terms were clearly disclosed and the borrower agreed to the terms, why should there be the expectation that the lender must and will take less than he is owed?

I find this attitude somewhat disturbing, but maybe that's because I'm from the old school that believes if you make a promise, you should keep it. That's integrity. If in a bind, it is certainly acceptable to discuss the problem with the other party and if the other party modifies the agreement to respond in gratitude, but there should be no expectation of a modification, after all, a promise is a promise.

IRS Warns Taxpayers to Beware of First-Time Homebuyer Credit Fraud

Michael Fair (Illinois Academy of Real Estate) — Wed, 29 Jul 2009 14:11:41 -0500

IR-2009-69, July 29, 2009

WASHINGTON - The Internal Revenue Service today announced its first successful prosecution related to fraud involving the first-time homebuyer credit and warned taxpayers to beware of this type of scheme.

On Thursday July 23, 2009, a Jacksonville, Fla.-tax preparer, James Otto Price III, pled guilty to falsely claiming the first-time homebuyer credit on a client's federal tax return. Price faces the possibility of up to three years in jail, a fine of as much as $250,000, or both.

To date, the IRS has executed seven search warrants and currently has 24 open criminal investigations in pursuit of potential instances of fraud involving the credit. The agency has a number of sophisticated computer screening tools to quickly identify returns that may contain fraudulent claims for the first-time homebuyer credit.

"We will vigorously pursue anyone who falsely tries to claim this or any other tax credit or deduction," said Eileen Mayer, Chief, IRS Criminal Investigation. "The penalties for tax fraud are steep. Taxpayers should be wary of anyone who promises to get them a big refund."

Whether a taxpayer prepares his or her own return or uses the services of a paid preparer, it is the taxpayer who is ultimately responsible for the accuracy of the return. Fraudulent returns may result not only in the required payment of back taxes but also in penalties and interest.

First-Time Homebuyer Credit

The First-Time Homebuyer Credit, originally passed in 2008 and modified in 2009, provides up to $8,000 for first-time homebuyers. The purchaser, however, must qualify as a first-time homebuyer, which for purposes of this credit means someone who has not owned a primary residence in the past three years. If the taxpayer is married, this requirement also applies to the taxpayer's spouse. The home purchase must close before Dec. 1, 2009, to qualify, and the credit may not be claimed on the purchaser's tax return until after the taxpayer closes and has purchased the home.

Different rules apply for homes bought in 2008.

Full details and instructions are available on the official IRS Web site: http://www.irs.gov

A Parable of the Unforgiving Lender

Michael Fair (Illinois Academy of Real Estate) — Thu, 30 Apr 2009 18:17:59 -0500

The United States Government wanted to settle accounts with the banking industry. When the accounting began, Lenders owed billions and could not pay. Uncle Sam ordered them to reduce executive compensation, quit throwing wild parties and paying extravagant bonuses or they would have to sell of their assets and perhaps file bankruptcy.

The banking industry fell on its knees and implored Uncle Sam, "Have patience with me, and I will pay everything." And Uncle Sam had pity on the banks, forgave them, paid the debt himself.

But when the banking industry went out it found tax paying consumers that owed hundreds of thousands, seized the consumer, began to choke him saying, "Pay what you owe." The tax paying consumer fell down and pleaded with the banking industry saying, "Have patience with me and I will pay you." The banking industry refused, foreclosing on his homes and raising credit card and consumer interest rates.

Maybe the day will come when someone becomes greatly distressed and will report to Uncle Sam all that has happened and on that day Uncle Sam will summon the banking industry and say, "You wicked lenders! I forgave you because you pleaded with me. And should you not have mercy on the tax paying consumer as I had mercy on you?" And Uncle Sam will deliver them to their fate.

He that has ears to hear, let him hear.

Mike Fair, Director
Illinois Academy of Real Estate

Real Estate Classes Since 1979

Are You Planning to Fail?

Michael Fair (Illinois Academy of Real Estate) — Fri, 02 Jan 2009 15:45:46 -0600

Silly question, isn't it? Or is it?

It has been said that "a person doesn't plan to fail, they just fail to plan." A statement well worth considering as we enter the new year and look to the future.

Many real estate licensees do not seem to grasp the concept that even though they may be associated with a brokerage firm and work "for" the firm, they are in business for themselves and that individual success requires treating their real estate business like a business.

A critical component of any successful business is having and working a business plan, and the real estate business is no different.

Here are some tips to help you plan your business for the coming year. You have probably heard many of them before as have I, but a little reminder never hurts. :)

1. Establish Goals. Your goals need to be well defined, measurable and in writing. Take your time as you think about your goals and consider all life areas: spiritual, physical, material, financial, social, work and family. Consider balance in all areas.

2. Develop A Plan. Identify problems that stand in your way and explore opportunities to offset the problem. A problem is not a problem, but a challenge to overcome.

3. Act on the Plan. A simple statement, yet probably the most important step. If you can't, won't or have difficulty acting on your plan, it just might be time to re-evaluate the plan.

4. Maintain The System. Your system is simply your plan "in action". Keep good record, follow up and provide outstanding customer service.

For further assistance, comprehensive guidance, tools and resources for business planning may be found at the web site of the Small Business Administration.

Mike Fair
Director

Illinois Academy of Real Estate

New Illinois Law for 2009

Michael Fair (Illinois Academy of Real Estate) — Fri, 02 Jan 2009 14:37:12 -0600

Welome to 2009

Illinois Escrow Law Changes - Real Estate Specific
New law provides for the transfer of escrow funds prior to termination or consummation of a real Estate transaction.

New Illinois Law, 2009 A review of more than 100 new Illinois laws that take effect January 1, 2009.

HUD Issues New Mortgage Rules HUD issues new mortgage rules to help consumers shop for lower cost loans. New good faith estimate will will help borrowers save nearly $700.00.

Illinois Academy Classroom Sessions
45 hour Basic Transactions
Salesperson 2009 CE
Broker Pre-license
Broker Management CE class schedule. Class Schedules.

It's Back!!! Illinois License Act Revision

Michael Fair (Illinois Academy of Real Estate) — Wed, 20 Feb 2008 18:30:29 -0600

Illinois House Bill 5338 is nearly identical to Senate Bill 571 which was unanimously passed by the Senate in 2007, but was held up in the House.

The bill is an update to the Real Estate License Act of 2000 and among other issues:

increases the required education for salesperson licensing from 45 hours to 90 hours with 30 hours of continuing education prior to the first renewal and 12 hours each subsequent renewal,

establishes initial broker licensing requirements of 45 hours of pre-license course work which must be in the area of brokerage management, supervision and administration with 18 hours of continuing education, 6 of which must be in broker management, and

provides that broker applicants must be licensed as real estate sales persons for 2 out of the last three years prior to broker licensing.

If passed, the proposed changes become effective May 1, 2009. Complete details available here.

Real Estate News and Notes

Michael Fair (Illinois Academy of Real Estate) — Wed, 26 Dec 2007 11:09:27 -0600

Illinois Academy of Real Estate
January 2008

Greetings!

Welcome the first newsletter of the new year.

State Wide Smoking Ban Becomes Effective January 1
Consider the ways this might affect your business. No Smoking Allowed

Radon Disclosure Law Becomes Effective January 1 Disclose, disclose, disclose. The Illinois Radon Awareness Act becomes effective January 1, 2008.

Other New Illinois Laws, Effective Jan. 1
Have reviewed Frank Watson Senate Republican Leader's New Laws for 2008 an "A" to "Z" review of more than 100 new laws that are slated to take effect January 1.

All Licensed Brokers Must Complete Broker Management Continuing Education By April 30. As of today, only 30.75 percent of licensed Illinois brokers have completed the broker management course required for license renewal. The course must be completed in a classroom. Reserve your seat today.

Pre-License Class Schedule
Salesperson's and Broker Pre-License Classes. Home Study Always Available

No Smoking Allowed, January 1, 2008

Michael Fair (Illinois Academy of Real Estate) — Sat, 22 Dec 2007 15:52:30 -0600

There has been much debate over the Illinois state-wide ban on smoking. Early concerns on part of the business community seem to be the question of the economic impact of the ban on such businesses as bars, resturants and other public gathering places. The issue is greater than that and many of us who have not thought through the legislation will find ourselves scrambleing to make immediate changes as of January 1.

The smoking ban applies to virtually all businesses and public places and can affect the way we all do business. At first glance, the broker/owner would need to post no smoking signs, insure that there was no smoking in the workplace, removie ashtrays within15 feet of the building entrance and insuring that no smoking takes place in this 15 foot area.

Points to Ponder

Would a business owner be responsible for an individual smoking in an automobile that was in a parking space within 15 feet of the business entry if the space were not designated a non-smoking parking space with appropriate signage?
How does the business owner tactfully request that a potential customer not smoke with 15 feet of the business entry and would it be necessary to have someone monitor the area to insure that the ban was complied with?
Who is responsible for cleaning up all of the ciggerette buts that are 15.01 feet from the business entry.
Would a real estate licensee need to refrain from smoking in his automobile and ask clients to do so if he offered to use it while showing property?

I am sure that there are many other questions that will be asked and that the broker owner or owner of any business needs to consider company policy and additions to a policy manual to specifically address the ban.

Mike Fair, Director
Illinois Academy of Real Estate

There's no reason to do well that which does not need to be done

Michael Fair (Illinois Academy of Real Estate) — Wed, 03 Oct 2007 15:46:48 -0500

Longtime Realtor Roy Fair loses cancer battle.

Fair was a past president of the Illinois Association of REALTORS and the 1982 Illinois REALTOR of the year. He served for 22 years as a director of the National Association of REALTORS. "We lost a great friend and REALTOR advocate," said IAR President Kay Wirth. "He gave so much to the REALTOR organization, locally, state and nationwide.

Roy was a real estate pioneer and a role model for many. He was dedicated and focused, a favorite saying being, "There's no reason to do well that which does not need to be done."

He was the founder of the Illinois Acadamey of Real Estate, my model and my father. He will be greatly missed by many.

Mike Fair
Director
Illinois Academy of Real Estate

Help with bookmarking blogs

Michael Fair (Illinois Academy of Real Estate) — Thu, 03 May 2007 09:57:56 -0500

I have found several blogs I would like to keep for reference. I see that there is a function for bookmarked blogs, but do not see how it is done. Probably very simple.

Would appreciate the help.

Thanks

Real Estate Education, the Path to Professionalism?????

Michael Fair (Illinois Academy of Real Estate) — Wed, 02 May 2007 16:48:55 -0500

In 2005, the Illinois Real Estate License Act was amended to include a required 6 hour Broker Management CE course for all licensed brokers. All brokers licensed after April 30, 2006 are required to complete the course within 180 days of initial licensing. All other brokers are required to complete the course prior to the April 30, 2008 license renewal. A total of 18 hours of continuing education, including this course are now required every two years for Illinois brokers. If a broker license does not wish to complete the required education, he may elect to step down to a salesperson's license at the time of renewal.

The amendment was proposed, in part, to address the number and types of complaints received by the Illinois Department of Financial and Professional Regulation indicating a lack of knowledge or misunderstanding of a managing broker's responsibility under the Illinois Real Estate License Act.

In order to promote the offering of uniform and consistent course content, the IDFPR contracted with an outside vendor to develop the course. The six hour class must be presented in a physical classroom setting by trained instructors whom have been trained in course presentation and have passed the course exam.

The six hour course includes:

Broker Licensing and Responsibilities
Agency Issues and Agreements
Office Management and Escrow
Risk Reduction
Disciplinary Actions

According to the Illinois Real Estate Educational Foundation, the course is intended to provide the knowledge and the tools necessary to be an effective real estate broker in Illinois.

The Illinois Academy of Real Estate has contracted with several approved instructors and plans on scheduling the course as soon as it becomes available. We are also interested in talking to other approved instructors.

As a real estate educator, I often ask myself, "what is the goal of real estate education?", a challenging question, especially when I work with state mandated content. I have viewed a few other blogs that address that same question. A couple of good ones are Pre-License Education and the value to the agent and Quality of Pre-License Education. While those blogs address pre-license, rather than continuing education, the issue is the same when working with state mandated content.

The answer is not simple, and I am sure that not all will agree with my analysis. I agree that the real estate industry needs to "raise the bar" as far as professionalism is concerned, but is "forced" education the answer. Education is important, but how much, what type, and to what extent.

Those who are serious about the profession already value the importance of education and would seek out education simply for the sake of improving themselves and the profession, ie GRI, CRS, CRB, e-PRO, CCIM, ABR, etc whom probably view most state mandated education as a simplistic joke, and yet the State does have a mandate to protect the public.

Perhaps there is a method, or could be a method to the madness of state regulatory agencies. Require enough education for licensing to protect the public with the ability to revoke the license if harm is done. That is the idea of a license, a way to enforce legal conduct within a profession.

I find the definition of "educate" to be very interesting - to train by formal instruction and supervised practice practice, especially in a skill, trade or profession. Perhaps the real estate profession should be an apprenticeship, or wait a minute, isn't that already the idea. The broker is responsible for the training and supervision of those he takes under his wing. Maybe more education and supervision should take place after licensing.

Perhaps more diligent broker supervision and enforcement of the law needs to be as important or more important as state mandated content in raising the level of professionalism in the real estate business.

The Future of the Real Estate Profession in Illinois, Update #1

Michael Fair (Illinois Academy of Real Estate) — Sat, 17 Mar 2007 17:53:06 -0500

An entry titled The Future of the Real Estate Profession was posted on February 9, 2007. This is an update to that posting. For another excellent view on this issue from a fellow active rain member see It's aout time!

Senate Bill 571 (SB571) has passed UNANIMOUSLY in the Illinois Senate and has been sent to the Illinois House of Representatives. The bill is an update to the Real Estate License Act of 2000 and among other issues:

increases the required education for salesperson licensing from 45 hours to 90 hours with 30 hours of continuing education prior to the first renewal and 12 hours each subsequent renewal
requires existing licenses to complete an additional 30 hours of continuing educationprior to the 2009 renewal
establishes initial broker licensing requirements of 45 hours of pre-license course work which must be in the area of brokerage management, supervision and administration with 18 hours of continuing education, 6 of which must be in broker management
provides that broker applicants must be licensed as real estate salespersons for 2 out of the last three years prior to broker licensing.

If passed, the proposed changes become effective May 1, 2009. Complete details available here.

The Illinois Academy of Real Estate will be following the progress of the legislation and will be posting updates.

Deceptive and Dangerous Websites

Michael Fair (Illinois Academy of Real Estate) — Sat, 24 Feb 2007 12:48:47 -0600

Yesterday, I posted an entry titled the "The Sad State of Search, or Why I Can't Find What I am Looking For?"

After some thought, I decided that it would better serve the members of ActiveRain and the readers of my blog by changing the title to reflect the most important issues, a present danger and a tool to address the problem.

My first thought was to re-title and submit which would have forced many of my readers to read the same post under a different title. Rather than duplicate the post, I want to share the fact that I have found McAffee's SiteAdvisor to be a helpful tool for detecting dangerous web sites and a free, useful program.

I also want to share some my thoughts on blogging. My goal is to provide useful information for my students, clients, friends and this community in general. Yesterday's entry was valid, but should have been presented in such a way that the community would benefit.

Hopefully I have learned, and maybe others can, to really think about title and content as it applies to the audience before punching the sent button.

May be I should have titled this a lesson learned? :)

The Sad State of Search, or Why Can't I Find What I'm Looking For

Michael Fair (Illinois Academy of Real Estate) — Fri, 23 Feb 2007 16:33:50 -0600

As the director of an Illinois real estate pre-license school, I occasionally search key words just to see what type of real estate classes are available.

More and more frequently, I find myself being led to web sites that are no more than thinly veiled classified ads designed to take advantage of ad sense type advertising. It appears that this type of advertising has led to an explosion of web sites that are heavy in key words but lack very little real content.

This is an aggravating and disappointing situation for both the consumer and the business person. Not only do these sites outrank legitimate business sites, they pose a danger for the unwary visitor. Fortunately, I use a free program called siteadvisor, that I strongly recommend to anyone who "surfs the net". This program tests web sites and warns about those that might be considered to be adware, spyware, or other unwanted programs.

While searching for Illinois real estate continuing education today, I landed on two sites that siteadvisor warned me about. Both sites were found on "Blogger"and contained hundreds of various keywords with no valid content. The key words linked to directories that linked to real estate related sites. Because of the siteadvisor warnings, I went no further. The Blogger posting the key words left no profile but a name.

It is a shame that these types of sites are being developed. I have no complaint with a business site that offers useful content that contains advertising that might be of interest to the searcher, my complaint is about the proliferation of sites offering little or worthless content designed to generate income when an unsuspecting surfer clicks on a link. Are there any solutions to this problem other than blowing of steam in a blog like this, or is this a situation we must learn to accept?

If it is something we have to accept, then what is the value of search. We have a useful tool here,let's not abuse it to the point that it has no value.

How to Obtain an Illinois Real Estate License

Michael Fair (Illinois Academy of Real Estate) — Sat, 17 Feb 2007 15:59:28 -0600

Want to obtain an Illinois Real Estate License? Here's How.

In Illinois, exams, licensing, and continuing education for real estate agents are governed by the Illinois Department of Financial and Professional Regulation. In order to obtain an Illinois real estate license, an applicant must first pass a state exam and meet the procedures for real estate licensing outlined in the Real Estate License Act of 2000

Each applicant shall:

Be at least 21 years of age, be of good moral character and have graduated from high school or obtained the equivalent of a high school degree.

The minimum age of 21 shall be waived for any person seeking a license as a real estate salesperson who has attained the age of 18 and can provide evidence of successful completion of at least 4 semesters of post-secondary school study as a full time student or equivalent with major emphasis on real estate courses, at a school approved by the Illinois Department of Financial and Professional Regulation.

All applicants for a real estate salesperson license must meet the following educational requirements:

Successfully complete a 45-class-hour Real Estate Transactions course at a real estate school approved by the Illinois Department of Financial and Professional Regulation or;

Be admitted to practice law by the Illinois Supreme Court or;

Be a resident of another state that has a reciprocal agreement with Illinois and meets the requirements of reciprocity.

All applicants for a real estate broker license must meet the following educational requirements:

Successfully complete at least 120 classroom hours, 45 of which shall be those hours required to obtain a salesperson license. 75 hours as approved by the Illinois Department of Professional and Financial Regulation as follows:

Mandatory Courses (45 hours)
Brokerage Administration (15 hours)
Contracts and Conveyances (15 hours)
Advanced Principles 2000 (15 hours)

Elective Courses (30 hours - any two listed below)
Real Estate Appraisal (15 hours)
Property Management (15 hours)
Financing (15 hours)
Sales and Brokerage (15 hours)
Farm Property Management (15 hours)
Real Property Insurance (15 hours)
Other approved electives (15 hours) or;

Be admitted to practice law by the Illinois Supreme Court or;

Be a resident of another state that has a reciprocal agreement with Illinois and meets the requirements of reciprocity.

Every person making application for an original license as a salesperson or broker must personally take and pass a written examination authorized by the Illinois Department of Professional and Financial Regulation.

Extremely Useful Web Sites

Michael Fair (Illinois Academy of Real Estate) — Fri, 16 Feb 2007 13:37:37 -0600

The Internet is a rich resource for real estate and general business information.

There is so much information that it is easy to become bogged down with information overload.

In this post, I will focus on some of the web sites that the has found to be extremely useful. We hope you enjoy them! Please feel free to share some of your favorite sites with us.

Government Resources in One Click
If you could only bookmark one web site, this would be the one. FirstGov.com for Consumers is the gateway for consumer information available from federal government sites.

If you are looking for information on any subject, you will likely find it through this portal which pulls together information from various government agencies all in one place. One stop stopping for consumer information and advice. Consumer Information from the Federal Government

Environmental Concerns, A Real Estate Hot Spot
Need information about clean air, clean water, human health, hazardous wastes, mold, radon, pesticides or any other environmental concerns?

Home buyer's and sellers look to their real estate agent for advice. While a licensee is not required to be an environmental specialist, they should be aware of concerns that are common in their marketplace.

An excellent source of information for both the client and agent is the official web site of the Environmental Protection Agency. Environmental concerns.

Sex Offender Identification
Many home buyers select a neighborhood before they select a home and are interested in where sex offenders live and work.

Due to potential liability, the licensee should not provide this information, however there are several web sites to which the interested client could be referred. Sites include: Family Watch Dog (www.familywatchdog.com), Sex Offenders.com, (www.sexoffender.com/), and the Illinois State Police (www.isp.state.il.us/sor/frames.htm)

Illinois Flood Maps Updates
Illinois flood plain maps have been update. Is your home or a home you are marketing in a floodplain? Is Federal floodplain insurance required? Updated Flood Insurance Rate Maps or FIRMS now available. Flood Plain Maps

Small Business Assistance Available
Planning on starting your own brokerage business? Whether opening a real estate business or any other business, the United States Small Business Administration is the place to begin. Includes resources for starting your business, financing your business and managing your business. Small Business Help

Posted by the Illinois Academy of Real Estate., providing classroom, correspondence courses, and on line real estate pre-license and continuing education classes since 1979.

Selling Your Home, Tips for Selecting a Real Estate Professional

Michael Fair (Illinois Academy of Real Estate) — Wed, 14 Feb 2007 12:41:22 -0600

In coordination with the FTC's recent real estate competition law enforcement sweep, the Commission has issued a new Facts for Consumers publication entitled "Selling Your Home? Tips for Selecting a Real Estate Professional."

The publication can be found on the FTC's Web site and is designed to help anyone who is thinking of selling their home using the services of a real estate broker or agent. It describes the differences between types of brokers and agents, including the differences between traditional, full-service real estate brokers and non-traditional brokers that may offer many of the same services, but on an a la carte basis, and provides tips and questions to ask when hiring a real estate broker.

The publication discusses different types of written real estate contracts, as well as the advantages and disadvantages of selling a home without a broker (for sale by owner), and identifies sources were consumers can get more information about mortgages and the home-sales process.

The Illinois Academy of Real Estate recommends that both consumers and real estate professionals review this publication. FTC Publication. Check it out and tell us what you think.

So You Want To Be A Real Estate Agent?

Michael Fair (Illinois Academy of Real Estate) — Sat, 10 Feb 2007 14:21:27 -0600

One of the most important financial events in peoples' lives is the purchase or sale of a home or investment property. As a result, they usually seek the help of a real estate professional or agent when buying or selling real estate. A real estate agent may be a licensed real estate broker or licensed real estate salesperson.

A salesperson is any person who for compensation or valuable consideration is employed either directly or indirectly by a licensed real estate broker to perform certain acts: to sell, offer to sell, buy, offer to buy, negotiate the purchase, sale exchange of real estate; or to negotiate leases thereof or improvements thereon. A real estate salesperson must work under the direction and sponsorship of a real estate broker at all times.

A broker is one who acts as an intermediary between parties to a transaction. A real estate broker is a properly licensed party (individual, corporation or partnership) who, for a valuable consideration or promise of consideration, serves as a special agent to others to facilitate the sale or lease of real property. A real estate broker has the choice of working on their own or working under the sponsorship of another broker.

The majority of real estate brokers and sales agents specialize in residential real estate and must have a thorough knowledge of the real estate market in their community, know which neighborhoods will best fit clients' needs and budgets, be familiar with local zoning and tax laws and know where to obtain financing.

Agents and brokers also act as an intermediary in price negotiations between buyers and sellers. Real estate agents are usually independent salespersons who provide their services to a licensed real estate broker on a contract basis. In return, the broker pays the agent a portion of the commission earned from the agent's sale of the property.

Brokers are independent business people who sell real estate owned by others; they also may rent and manage properties for a fee. Brokers may supervise agents who may have many of the same job duties. Brokers also manage their own offices, advertise properties, and handle other business matters.

There is more to an agent or broker's job than making sales. They must have properties to sell. Consequently, they spend a significant amount of time obtaining listings, owner agreements to place properties for sale with the firm. When listing a property for sale, agents and brokers compare the listed property with similar properties that have recently sold to determine its competitive market price. Once the property is sold, the agent who sold the property and the agent who obtained the listing both receive a portion of the commission. Most real estate brokers and sales agents sell residential property.

A smaller number, usually employed in large or specialized firms, sell commercial, industrial, agricultural, or other types of real estate. Every specialty requires knowledge of that particular type of property and clientele. Selling or leasing business property requires an understanding of leasing practices, business trends, and location needs. Agents who sell or lease industrial properties must know about the region's transportation, utilities, and labor supply. Whatever the type of property, the agent or broker must know how to meet the client's particular requirements.

Before showing residential properties to potential buyers, agents meet with buyers to get a feeling for the type of home the buyers would like. In this pre-qualifying phase, the agent determines how much buyers can afford to spend. An agent or broker uses a computer to generate lists of properties for sale, their location and description,

and available sources of financing. In some cases, agents and brokers use computers to give buyers a virtual tour of properties in which they are interested. Buyers can view interior and exterior images or floor plans without leaving the real estate office.

Agents may meet several times with prospective buyers to discuss and visit available properties. Agents identify and emphasize the most pertinent selling points. To a young family looking for a house, they may emphasize the convenient floor plan, the area's low crime rate, and the proximity to schools and shopping centers. To a potential investor, they may point out the tax advantages of owning a rental property and the ease of finding a renter. If bargaining over price becomes necessary, agents must carefully follow their client's instructions and may have to present counter-offers in order to get the best possible price.

Once both parties have signed the contract, the real estate broker or agent must see to it that all special terms of the contract are met before the closing date. For example, the agent must make sure the mandated and agreed-to inspections, including the home, termite, and radon inspections, take place. Also, if the seller agrees to any repairs, the broker or agent must see they are made. Increasingly, brokers and agents handle environmental problems by making sure the properties they sell meet environmental regulations. For example, they may be responsible for dealing with lead paint on the walls. While loan officers, attorneys, or other persons handle many details, the agent must ensure that they are completed.

Most real estate firms are relatively small; indeed, some are a one-person business. Some large real estate firms have several hundred agents operating out of many branch offices. Many brokers have franchise agreements with national or regional real estate organizations. Under this type of arrangement, the broker pays a fee in exchange for the privilege of using the more widely known name of the parent organization. Although franchised brokers often receive help training sales staff and running their offices, they bear the ultimate responsibility for the success or failure of their firm.

Real estate brokers and sales agents are older, on average, than most other workers. Historically, many homemakers and retired persons were attracted to real estate sales by the flexible and part-time work schedules characteristic of this field. They could enter, leave, and later re-enter the occupation, depending on the strength of the real estate market, family responsibilities, or other personal circumstances. Recently, however, the attractiveness of part-time work has declined as increasingly complex legal and technological requirements raise start-up costs associated with becoming an agent.

Those interested in jobs as real estate agents often begin in their own communities. Their knowledge of local neighborhoods is a clear advantage. Under the direction of an experienced agent, beginners learn the practical aspects of the job, including the use of computers to locate or list available properties and identify sources of financing.

Many firms offer formal training programs for both beginners and experienced agents. Larger firms usually offer more extensive programs than smaller firms.

Employment of real estate brokers and sales agents is expected to grow more slowly than the average for all occupations through the year 2010. However, a large number of job openings will arise each year from the need to replace workers who transfer to other occupations or leave the labor force. Not everyone is successful in this highly competitive field; many beginners become discouraged by their inability to get listings and to close a sufficient number of sales. Well-trained, ambitious people who enjoy selling should have the best chance for success.

Employment of real estate brokers and sales agents is very sensitive to swings in the economy. During periods of declining economic activity and tight credit, the volume of sales and the resulting demand for sales workers falls. During these periods, the earnings of agents and brokers decline, and many work fewer hours or leave the occupation altogether.

The real estate business is not for everyone. In order to succeed, you need to be a self-starter, to be motivated and persistent. You must be able to plan and more importantly, work your plan. Above all, you must be able to handle rejection. If those characteristics describe you, selling real estate just might be the career for you.

The real estate field is a career area filled with exciting opportunities. It provides the opportunity to help others, the opportunity for freedom and independence, the opportunity to take advantage of your personal strengths, and an opportunity for security.

Edited by Mike Fair, director of the Illinois Academy of Real Estate.

Source: Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2006-07 Edition, Real Estate Brokers and Sales Agents, on the Internet at http://www.bls.gov/oco/ocos120.htm

The Future of the Real Estate Profession in Illinois

Michael Fair (Illinois Academy of Real Estate) — Fri, 09 Feb 2007 14:37:46 -0600

Will it have any effect on the quality or number of real estate licenses in Illinois?

Senate Bill 0571 (SB0571) has been sent to the rules committee of the Illinois state senate. The bill is an update to the Real Estate License Act of 2000 and among other issues:

increases the required education for salesperson licensing from 45 hours to 90 hours with 30 hours of continuing education prior to the first renewal and 12 hors each subsequent renewal,

provides that broker applicants must be licensed as real estate salespersons for 2 out of the last three years prior to broker licensing.

If passed, the proposed changes become effective May 1, 2009. Complete details available here.

The Illinois Academy of Real Estate will be following the progress of the legislation and will be posting updates.