Update to Smoke Alarms Requirement on Dec 1, 2016

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smokealarmWe hope you had a wonderful Thanksgiving with family and friends. We just wanted to let you know that on Dec 1st new regulations require owners of single or multi-family homes built prior to 1975 to replace expired and non-working smoke detectors with new ones equipped with a ten year sealed battery. Fire departments will be checking for compliance when they conduct smoke alarm inspections.

We always tell all of our students to check with the local fire department to make sure they understand what is required for the property to pass the smoke alarm inspection. The fire marshal has created a consumer fact sheet for smoke alarm and carbon monoxide detectors which you can find by clicking here

Real Estate Proration for the closing

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On July 18th, 2014 Jane from ABC Realty meets her first time home buyer clients Jane and Fred Smith at the attorney\’s office for the closing of 25 Maple St. Jane remembers that she was able to negotiate a great sales price for her clients. The property was listed for $150,000. and it was on the market for over 150 days. After comparing the other sold properties in the area. Jane realized the property was over priced. She helped her client negotiate a sales price of $140,000. When filling out the offer the Buyers place a $10,000 earnest money deposit and their financing is 90% of the purchase price with 4 points. Your clients tell you that they locked in an interest rate of 9.5%. During the closing the attorney goes over the closing statement with your clients. The Sellers have not yet paid the real estate taxes of $1700 and the additional property assessment of $1540. The Sellers also have a mortgage that need to pay at the time of closing, $83,760 with an interest rate of 7%.

At the time of closing the items that will appear on the closing settlement statement are:

  1. Proration of real estate taxes: (The Seller has not paid the real estate taxes.)
    1. Taxes per day:

      2. $$$1700 \, unpaid \, taxes \div 360 \, days = $4.72$$

    1. How many days the Seller lived in the property

      2. $$6 \, months * 30 \, days = 180 \, days$$
      $$180 \, days + 18 \, days \, in \, July = 198 \, days$$

    1. The Seller’s Debit and the Buyer’s Credit

      2. $$$198 \, days * $4.72 \, per \, day = $934.56$$

    1. Prorate the addition property assessment:
      1. Additional property assessment per day

        2. $$$1540 \, unpaid \, property \, assessment \div 360 \, days = $4.28 \, per \, day$$

      2. How many days the Seller lived in the property

        3. $$6 \, months * 30 \, days = 180 \, days$$
        $$180 \, days + 18 \, days \, in \, July = 198 \, days$$

      3. The Seller\’s Debit and the Buyer\’s Credit

        4. $$198 \, days * $4.28 \,per \, day = $847$$

Goodbye to Pearson Vue

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The Board of Registration of Real Estate Brokers and Salespersons has said, “So long and thanks for all the fish!” to Pearson Vue yesterday.

That is correct as of April 1st, 2016 PSI Services LLC will be the new testing service for Real Estate Exams here in the state of Massachusetts. As this is breaking news the board is not giving us any details about the transition just yet.

The notice was posted on the Pearson Vue website yesterday.

Pearson Vue Notice

According to the Pearson Vue website:

As of March 15, 2016, Real Estate applicants will be able to schedule examinations with PSI Services LLC, for examinations, on or after April 1, 2016. Additional information can be found at the following web site on or around March 15th: psiexams.com

I am encouraging all of our broker and salesperson students that have already completed their prelicensing course, and not taken the real estate exam yet, to do so ASAP to avoid any delays in getting their license.

As word of the transition spreads I am sure that Pearson Vue will be swamped with students trying to take their test before April 1st so I would call Pearson Vue today and schedule the next available exam you can. Here is the number too make an exam reservation (800)274-0501.

You can be sure that we are going to be ferreting out all the details of this process as they unfold and informing you each step of the way.

Here is how you can help us. We are crafting a email to the Director of the Board of Registration of Real Estate Brokers and Salespersons about this transition and would love to include your questions and feedback. If you have specific questions about the transition please post them below. As we get the answers to the questions we will detail them here so everyone gets the benefit of the information.

Referred Insurance Companies for a Surety Bond in Massachusetts

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Many of our Broker Prelicense students have asked us for referrals to Insurance Agents that can help them with the surety bond that they need.  As you know all Massachusetts Real Estate Brokers must have a $5000 surety bond before taking the test and while they hold an active Broker license.

Many of our students were running into problems not being able to find an nsurance company or agent that could help them.  So, a few months ago we sent out an email asking for referrals to insurance agents or companies that our students would recommend.  We would like to thank everyone for getting back to us.

Below you will find the list of insurance agents that have been referred to us from our students.  Please let us know if you have any problems with any of the agents listed below.

Referred Insurance Agents and Companies:
Chris Russo
Russo Insurance
Medway, MA
Phone: 508-533-3000
Fax: 508-533-5333
Gaudette Insurance
68 Worcester Street
North Grafton, MA 01536
Phone: 508-839-6022
Fax: 508-839-4416
Richard R. Green Insurance Agency, Inc.
32 Somers Road
Hampden, MA 01036
Phone: 413-566-0028
Fax: 413-566-0090
Nicholas Gennetti
Cochrane and Porter Insurance Agency
981 Worcester Street
Wellesley, MA 02482
Mancuso and Nowak
252 Boston Turnpike
Shrewsbury, MA 01545
Phone: 508-756-4310
Fax: 508-752-6712
Brown and Brown Insurance
3 Hollis St
PO Box 1497
Pepperell, MA 01463
Phone 978-433-7228
Fax: 866-848-6097
Heidi Pafumi
BKaye Insurance
44 Harkness Ave
East Longmeadow MA
Phone: 4136874339
Email: Hpafumi@bkaye.com
Barbara Christopherson
Account Executive, Commercial Lines Ins.
Thomas Woods Insurance Agency, Inc.
20 Park Ave., PO Box 2940
Worcester, MA  01613-2940
Tel. 508-755-5944 ext 110
Fax 508-755-6412
John Dustin or Carly Longo
JED Insurance & Financial
30 Mechanic St #5
Foxborough, MA 02035
Phone: 508-543-1067
J.R. Tallman & Co., Inc
P.O. Box 469
12 Court Street
Taunton, MA 02780
Phone: 508-824-4051
Fax: 508-822-7654
Nicholas Stoddard
Liberty Mutual Insurance
11 Village Hill Rd., Suite 103
Northampton, MA 01060
Direct: 1-413-582-7059
Toll Free: 1-866-583-5306
Fax: 1-413-582-7947

Massachusetts Real Estate Salesperson Prelicense Requirements

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Massachusetts Real Estate Salesperson Prelicense Requirements

This video explains all the requirements for taking the 40 hour Salesperson’s Prelicense class and taking the Prelicense Examination. People interested in getting a real estate agents license in Massachusetts should go to http://baystateacademy.net and sign up for our industry updates for more detailed information.

Gambling with your real estate license

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I just finished talking to one of our students. She needed a copy of her Continuing Education Certificate, because her entire office is being audited by the Board of Licensure. That’s right its not a typo. On Monday the office was notified that every agent in her office has to send in their Continuing Education Certificate.

 

So, while I was talking with her I could hear the stress in her voice and she only needed a new certificate showing she finished the classes. I could only image the stress and anxiety an agent is feeling that has not completed the 12 hours of continuing education and stated that it was complete when they sent in their renewal.

 

As agents we already have enough stress and anxiety in our day to day lives. We really do not need to be adding anymore. While on the phone I thought to myself, “How can I help relieve the stress some of the agents are going through about this audit?” I quickly created a $50 off coupon (Coupon Code: EE75) that she could share with everyone in the office that needs to take the 12 hours of continuing education. So, if you have not completed your continuing education for your license renewal don’t delay. You or your office could receive an audit letter from the Board of Licensure. Go ahead and register online today.

 

Each of our online continuing education classes are a 2 hour video presentation with no tests or quizzes. Our program also keeps track of your time, so you can pick up where you left off when you log back in.

 

Please feel free to share this offer with agents in your office. We always appreciate and value the referrals we receive from our students.

 

Visit us at http://baystateacademy.net

 

Coupon Code: EE75
*Cannot be combined with other offers Expires 05/30/2013

Melt Away Your Clients Fears

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Real Estate agents are so dedicated to their clients.  No matter what the weather predication is.   We’re out there going from one appointment to the next.  I remember at one of my showing a few years ago, when we had 15 feet of snow everywhere.  My clients and I had to almost swim through the snow to reach the front door.  The property was bank owned and no one had come by to shovel the walk way.  Lucky enough it was the last home on our tour.  It all worked out because they fell in love with the inside.  It’s always a great feeling when you see your clients become really excited about a property.  They wanted to talk a little bit more about the property and write up an offer.  The inside of the house was as cold as an ice-box, so I decided to take them to a local coffee shop to warm up and relax before writing up the offer.  I always remember how relaxed my clients became while sitting in the corner couch of the cafe.  Not only did the cup of hot chocolate and latte help regain the feeling in our hands and feet.  The warmth also helped melt away all their concerns and fears about putting the offer. With the cold weather on our heals I thought I would share a few spots that you might like to take your clients.

 

Boston:

South Shore:

Worcester:

Pioneer Valley:

 

 

Massachusetts Real Estate Prelicense Exam Tutorial

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Massachusetts Real Estate Prelicense Exam Tutorial

The Real Estate Exam in Massachusetts can be confusing but only because of the volume of real estate terms that need to be learned by the students. When I am teaching, about halfway through the first day, students will ask if they really need to know everything that we are covering for the test. I wish that I could tell them that they only need to know a few terms but that is not the case. The test covers over 1200 terms. Which can seem intimidating at first but once we get familiar with the basics things more along quite nicely.

 

I am sure that most Real Estate Trainers would agree that the only way you are going to pass the exam is to know the vocabulary. But how should the students go about learning the terms is the question?

 

I teach a technique that I call pointing the test. The exam is made up of 135 questions.  There are 85 questions on the general portion of the test and 50 questions of the state portion of the exam. The students have 4 hours to complete the exam and they only need a 70% on each portion of the test to pass.

 

It is important to note that all of the questions are not worth the same point value but the student will not be aware of which questions are worth more points on the test.  This sounds like we are going in circles until you realize that the test stresses particular subject areas.

 

If you go to the Pearson Vue Website and download the content outline of the test you will discover that some of the subject areas have substantially more questions than others. In talking with student both before and after their exam I have noticed a pattern.

 

Students that concentrated their studying on the subject areas that had more questions got higher scores on the test. I know this might sound obvious but you would be surprised how many students start studying for the test with out any focus.

 

So it should come as no big shock to hear that focused studying is the first part of the process that I call pointing the test.  The second part of the process has to do with how the students actually take the exam. Here are the rules of the second part:

 

  • On your first pass through the exam read all of the questions in detail. Then answer all of the vocab questions that you feel confident about first and skip all the hard vocab and math questions.
  • On your second pass through the exam answer just the hard vocab questions. If you do not know the answer try to guess the best that you can by eliminated 1 or 2 of the choices. Please remember to answer all of the questions as blank answers are always marked incorrect.
  • On your third pass through the exam answer all of the math questions.

 

The reason that I suggest this Pointing the Test method is that it focuses the student on getting as many points as possible as fast as possible. This is important because often times a students first guess/thought about a question is the correct answer. The other benefit is that the student is reading all of the questions on the test before answering the hardest questions. Many of the description to questions on the test will give answers to other questions. This gives the best chance to get the points from those harder questions. And finally we come to the math questions. Of all the questions on the test the math questions cause more fear and dread than all the others combined. You will be happy to hear that only 10% of the questions on the test will be math questions. So if you leave these question until the end you will not be so flustered by the math that you get easy vocab questions wrong.

 

That is it for my suggestions try them out and let me know what you think in the comments bellow.