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Anna "Banana" Kruchten Broker - Owner

Thinking of Becoming a REALTOR? You're Starting a Business!

Thinking of Becoming a REALTOR? You're Starting a Business!

Earlier this week, I wrote a post about all the considerations for anyone new to the real estate business. The single point that received the most feedback and attention had to do with the expenses related to getting started in the business.

Many brand new real estate agents are completely unaware of the costs of hanging out that REALTOR Starting in Real Estate has Hard Costs attachedshingle. Regardless of how big/good/well-qualified a broker you sign on with, the fact is that starting in the real estate business means, effectively that you are starting your own business! So in order to do it successfully, you must plan for all the costs involved.

The following is a detailed - but not exhaustive - list of the expenses any new agent can expect to incur:

  • Real estate school
  • Testing
  • Licensing fees
  • Fingerprinting (even if you have been fingerprinted in the past)
  • MLS setup fees
  • Necessary computer hardware and software
  • Local and national industry organization fees
  • Web design/maintenance/SEO
  • Database management
  • Graphic design
  • Blog platform
  • Offline advertising
  • Business cards, postcards, flyers, car decals
  • For Sale & Open House Signs
  • Office rental fees
  • Phone/long-distance service
  • Support staff
  • Automobile upkeep, insurance, and fuel
  • Transaction fees
  • Networking and business development
  • Continuing education

In short, this is not a job to undertake lightly. You want to make sure you've budgeted appropriately, and that you are fully committed to the investment in your success. An unfortunate number of promising real estate careers die a quick death for lack of proper planning and cash flow.

Let me know if you have any other questions. I've been in the real estate industry for a long, long time and I'm happy to share all I know to make your entry into the industry as easy as possible. And, of course, if you're starting your career in Phoenix, make an appointment to come see me in person!

Anna Banana

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Do you live in the Phoenix, Arizona area? Are you thinking about making a change in real estate companies? Give me a call at 602-595-8900 or e-mail me.

Let's talk about your marketing strategies - and how you can better teach others to refer business to you.

PhoenixPropertyShoppe.com

Tax Credit Extension Is GREAT News for Phoenix Move-Up Buyers

Tax Credit Extension Is GREAT News for Phoenix Move-Up Buyers

As you may have heard, President Obama this morning signed an extension of the first-time homebuyers' $8,000 tax credit, with an added credit of $6,500 for move-up buyers. The extension and Obama signs homebuyer tax credit extensionnew credit apply to home purchases occurring between today (November 6, 2009) and April 30, 2010. Purchases signed by the April 30 deadline have until July 1, 2010 to close. And military personnel serving abroad have an extra year, with their tax credit set to expire June 30, 2011.

First-Time Buyers' Credit

  • Must purchase a home between November 6, 2009 and April 30, 2010.
  • Must not have owned a residence during the three years prior to the purchase.
  • Applies to primary residences, including single-family homes, condos, townhomes, and co-ops. Vacation homes do NOT qualify for the tax credit.
  • The maximum allowable credit is 10 percent of the purchase price, up to $8,000. The total amount is determined based upon two factors: the purchase price of the home and the buyers' income.
  • Income limits have been increased with the extension. They are now up to $125,000 for singles and $225,000 for married couples. Lesser credits are available for singles earning up to $145,000 and married couples earning up to $245,000.
  • Whereas there was previously no limit on the purchase price, this extension caps the allowable purchase price of the property at $800,000.

Move-Up Buyers' Credit

  • Must purchase a home between November 6, 2009 and April 30, 2010.
  • Must have used the home they are selling as their primary residence for at least 5 consecutive years.
  • Applies to primary residences, including single-family homes, condos, townhomes, and co-ops. Vacation homes do NOT qualify for the tax credit.
  • The maximum allowable credit is $6,500, the total amount of which is determined based upon two factors: the purchase price of the home and the buyers' income.
  • Income limits are up to $125,000 for singles and $225,000 for married couples. Lesser credits are available for singles earning up to $145,000 and married couples earning up to $245,000.
  • The allowable purchase price of the property is capped at $800,000.

What this means for Phoenix buyers$600K home for sale in Cave Creek

Many, many first-time buyers in Phoenix have taken advantage of the $8,000 tax credit since it was passed in February of this year. People who might not otherwise have jumped into the market decided to buy a first home because of this fantastic benefit.

Now, it's Phoenix move-up buyers' turn! We continue to see excellent buys for existing homeowners looking to purchase homes in the $300K to $800K range. The values and options, coupled with the new tax credit, make this the perfect climate for move-up buyers. If you're an existing homeowner in Phoenix who's looking to move up, now is the time to get in the game. Start your search here - and give me a call at 602-595-8900. Phoenix Property Shoppe will make your move-up experience simple, stress-free, and enjoyable.

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Thinking of buying or selling a home in the Phoenix area - or know someone who is? This is the PERFECT time to think about moving up to the next home of your dreams!

Find out how we can help make the buying or selling process simple, stress-free, and enjoyable. Feel free to contact me by phone 602-595-8900 or email me.

Search here for homes in the Phoenix area.

You can also visit our website for more information on Phoenix and the surrounding areas.

Phoenix Property Shoppe

You've Decided on a Career in Phoenix Real Estate: Top 10 Things to Do When Deciding on a Firm

You've Decided on a Career in Phoenix Real Estate: Top 10 Things to Do When Deciding on a Firm

Congratulations on your decision to become a Phoenix REALTOR®! You've passed your state licensing exam. Your next step is to find a company that's a good fit for you. Smart prospective agents will interview with a number of real estate firms before deciding where they will begin their careers. Here are the top 10 things to do when deciding on a real estate firm:

  1. Hit the Web (ActiveRain is a GREAT place to start) or visit your local Chamber of Commerce to find out which real estate companies in your community are best represented. Which ones seem to make the best impression on you? Make a list of the agencies you want to visit.

  2. Make appointments with the Advice for rookie real estate agentsdesignated broker of each agency on your list. Larger companies may have recruiting managers you will speak with before you meet the designated broker. Think of this meeting as a two-way interview: the broker must impress you as much as you impress him/her.

  3. Dress appropriately for the appointment. In Phoenix, we're mostly business casual - but it's always better to err on the side of caution and overdress, rather than dress too casually for an interview.

  4. Ask about the company's training program. You're new to the game, so this is an essential component in your search for the right firm. Is training free, or will you be expected to pay all or a portion of the costs?

  5. Ask how many agents work for the company now and how long they've been part of the team. A high turnover rate could indicate a lack of emphasis on training or other problems.

  6. Leads are essential for any new agent's success. Your database is your own personal goldmine. Ask the broker how he/she will help you grow your database. Also find out how leads are distributed within the agency.

  7. Ask for an itemized list of start-up expenses. You will be required to join a local association and national association as well as pay for your licensing costs. Does the company supply signs or lockboxes or will you be required to purchase your own. Will you work from home or will there be desk or office monthly fees at the office? Does the broker charge transaction fees? Most likely you'll need to purchase laptop computer as well as other software programs to manage your data base and create presentations. Fees can vary greatly for all of these items. There will be other fees for website, blogs, marketing, postage etc. Remember, even though you will have a company behind you, you are essentially starting your own business - so you must expect the attendant expenses!

  8. Find out how commissions are paid. Are they paid immediately upon closing? What is the typical commission split between the office and agent? Does the commission increase as your sales increase? If you are interviewing with a franchised agency, be sure to ask what percentage of each commission goes to the franchise company.

  9. Ask whether the firm carries Errors & Omissions insurance for their agents. If so, find out exactly what is covered. You might want to discuss the policy with the insurance carrier to make sure you are adequately covered. Ask the broker if there is a separte fee per closed transaction or if the broker covers this expense. E & o coverage can add up quickly for some companies and the costs may be passed on to the agents.

  10. This will be the place where you spend a good portion of your time, so try to get a general feel for the atmosphere in the office. Is it simply polite, or do the agents seem to really enjoy their work and this office environment? Get a 'feel' for the company culture - I suggest going back for a second interview as well as talking with an agent or two that is currently working with the firm. This is an important choice - be sure to sleep on it and not make a quick choice.

Make sure you get all your questions answered to your satisfaction. If a broker or hiring manager ducks questions or seems distracted, those are red flags that working at such a company may pose problems later. Put your intuition into full gear - and if everything feels right, go for it!

Let me know if you have any other questions. I've been in the real estate industry for a long, long time and I'm happy to share all I know to make your job search easier. And, of course, if you're starting your career in Phoenix, make an appointment to come see me in person!

Anna Banana

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Do you live in the Phoenix, Arizona area? Are you thinking about making a change in real estate companies? Give me a call at 602-595-8900 or e-mail me.

Let's talk about your marketing strategies - and how you can better teach others to refer business to you.

PhoenixPropertyShoppe.com

Concerts at Desert Botanical Garden honor Native American Recognition Days

Concerts at Desert Botanical Garden honor Native American Recognition Days

The annual Native American Recognition Days are held each year during October and November in the Native American REcognition Days at Desert Botanical Gardengreater Phoenix area to celebrate and honor the Native American cultures in our area. Community volunteers come together to provide numerous events showcasing our beautiful Native American culture.

This year's theme, "Preserving Mother Earth," reminds us each to treat Mother Earth as our own mother, respecting Her daily.

"Treat the Earth well: it was not given to you by your Parents, it is loaned to you by your Children. We did not inherit the Earth from our Ancestors; we borrowed it from our Grandchildren."
~Native American belief, Author Unknown

"Whatever befalls the earth befalls the sons and daughters of the earth.
We did not weave the web of life; we are merely a strand in it.
Whatever we do to the web, we do to ourselves."
~Chief Seattle

In honor of Native American Recognition Days, Canyon Records and the Desert Botanical Garden are partnering to bring two marvelous concerts to the Valley.

Clan/Destine
Saturday, November 7, 12-2 p.m.
Members: $14 / General Public: $20 / Children (3-12): $8
Children under three are free.

Will Clipman & Robert Tree Cody
Sunday, November 8, 6-8 p.m.
Members: $14 / General Public: $20 / Children (3-12): $8
Children under three are free.

Join the Garden and the Native American Recognition Days organization to celebrate the traditions and achievements of Native American communities in Arizona. This year, the Garden is hosting two concerts featuring diverse local Native American music.

Follow this link to find more information about the Native American Recognition Days organization.

To Purchase Tickets:

Call 480-481-8188 from 8 a.m. to 8 p.m. Monday-Thursday, and 8 a.m. to 5 p.m. Friday through Sunday or visit the DBG Box Office (8 a.m.-8 p.m., daily)

All Garden activities are subject to change.

Click here to learn more about Clan/Destine.

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Thinking of buying or selling a home in the Phoenix area - or know someone who is? This is the PERFECT time to think about moving up to the next home of your dreams!

Find out how we can help make the buying or selling process simple, stress-free, and enjoyable. Feel free to contact me by phone 602-595-8900 or email me.

Search here for homes in the Phoenix area.

You can also visit our website for more information on Phoenix and the surrounding areas.

Phoenix Property Shoppe

What a Difference 100 Years Makes!

What a Difference 100 Years Makes! A friend of mine sent me this very interesting information - Enjoy and I hope it makes you think of what the next 100 years might bring!

If you're like me, this will boggle your mind. The year is 1909 - a mere 100 years ago. What a difference a century makes! Here are some statistics for the Year 1909 :

Average life expectancy: 47 years

Percentage of homes with a bathtub: just 14 percent

Percentage of homes with a telephone: only 8 percent

Total number of cars in America: 8,000

Miles of paved roads: 144What a difference a hundred years makes!

Maximum speed limit in most cities: 10 mph

Tallest structure in the world: the Eiffel Tower at 990 feet
(For reference, the Empire State Building is 1,250 feet tall.)

Average Annual Earnings

+ Average wage: 22 CENTS per hour

+ Average salary worker's annual earnings: between $200 and $400 per YEAR

+ Amount a competent accountant could expect to earn: $2,000/year

+ Average dentist's salary: $2,500/year

+ Average veterinarian's salary: Between $1,500 and $4,000/year

+ Average mechanical engineer's salary: about $5,000/year

Percentage of births that took place at HOME: more than 95 percent.

Percentage of doctors who had NO COLLEGE EDUCATION: 90 percent!
(Instead, they attended so-called medical schools, many of which were condemned by the press AND the government as "substandard."

Cost of sugar: 4 cents/pound

Cost of eggs: 14 cents/dozen

Cost of coffee: 15 cents/pound

How often most women washed their hair: once a month
(And they used Borax or egg yolks for shampoo.)

Five leading causes of death:

1. Pneumonia and influenza
2. Tuberculosis
3. Diarrhea
4. Heart disease
5. Stroke

Number of stars on the American flag: 45

Population of Las Vegas: only 30!!

Percentage of literate adults: 80 percent

Percentage of Americans who graduated from high school: 6 percent

Percentage of households with at least one full-time servant: 18 percent

Number of murders reported in the ENTIRE country: 230

Things available over-the-counter at the local corner drugstore: marijuana, heroin, and morphine
(Back then, pharmacists said, "Heroin clears the complexion, gives buoyancy to the mind, regulates the stomach and bowels, and is, in fact, a perfect guardian of health.")

Things that hadn't yet been invented: Crossword puzzles, canned beer, Mother's/Father's Day, and ice tea

Some of this stuff is interesting; other things are mind-blowing. Now, just for fun, try to imagine what life might be like in another 100 years! Flying cars? Liquid nutrition? Teleporting?

Send your thoughts, ideas, pictures. I'd love to hear what you're thinking!

Anna Banana

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Thinking of buying or selling a home in the Phoenix area - or know someone who is? This is the PERFECT time to think about moving up to the next home of your dreams!

Find out how we can help make the buying or selling process simple, stress-free, and enjoyable. Feel free to contact me by phone 602-595-8900 or email me.

Search here for homes in the Phoenix area.

You can also visit our website for more information on Phoenix and the surrounding areas.

Phoenix Property Shoppe