Questions about listings make up a significant portion of the National test here in New Hampshire. As the license candidate it is crucial for you to be able to understand the differences and nuances that go along with each type of listing agreement. Let’s take a moment and review the types of listings.

Starting from the top

Exclusive Right to Sell - The seller is making you their only broker. You are the only one who has the right to sell that property. You are going to get paid no mater who brings the buyer to the property. The seller has even said that if they find the buyer themselves, you will still get paid. In essence, the seller has given up their right of disposition to you, the broker. It has a definite start and end date; terms of the commission are stated in a dollar amount or percentage; full property description and the seller’s terms of sale.

Exclusive Agency- Now you are the only broker who is authorized to sell this property. However, if the seller sells it themselves, you might not get a commission. The seller has kept the right to transfer the property without being obligated to pay the agent a commission. If the broker or any other broker brings the buyer, you are going to participate in the commission. Just like Exclusive Right, it has a definite start and end date; terms of the commission are stated in a dollar amount or percentage; full property description and the seller’s terms of sale.

Open Listing - Other language to say Open Listing include: Simple Listing, General Listing, NonExclusive Listing. Keep in mind they like to mix up the terms on the test. In this case, if you the broker bring a ready, wiling and able buyer to the property you will get a commission. The seller can “hire” multiple brokers under this arrangement and only pay the broker who brings the buyer to the deal. And if the seller sells it themself, they don’t have to pay a commission to any broker.

Option Listing - Gives the broker the right to purchase the property themselves within a specified time frame. The broker does not have to exercise this right to buy. The broker is not under any obligation to buy in this case but the seller must sell if the option is used. An Option Listing is very different than a “guarantee” from the broker to buy “If I don’t sell it in 90 days, I will buy it”.

Net Listing - This is when the broker’s commission is based on the seller receiving a specified NET and the agent receiving everything beyond that in commission. This is illegal in New Hampshire and many other states. This is when the seller says they want $200,000 and you sell it for a million and keep $800,00 for yourself. Now there is a conflict of fidiuciary interest. Not exactly fair, don’t you think?

So there you have it. Remember to keep your mind open during the reading of the question 3 times. The test wants to know if you know the difference between types of listing contracts. And now you do.

You have studied for days and days. You think you understand real estate and you head out to take the test. Sitting in front of the computer screen it feels like your mind has become a blank and you never heard of anything the test is asking! “Are you kidding?”, you ask yourself silently. Take heart, dear student, you do have a chance to pass the test. The key is peeling the question apart just like you peel an onion - layer by layer.

Most questions are missed because you didn’t READ it carefully and with a purpose. A purpose? Yes, a purpose. You want to get to the under layer of what the question is truly asking of you and what is FLUFF. When you take this exam you need to read each one 3 (count em’ 3) times. The first time is to get a handle on what TYPE of question is being asked. Read both the question and the answers. And here is what to look for when reading.

Common types include:

• Most Important - Look for the key word or concept that makes one more important
• Most Likely or Least Likely - what would normally happen in this situation
• Least - Might say Least Influence or Least Likely. It is asking what is the less probable outcome
• Not - One of theses things is NOT like the others
• Best - What is the better answer of all the answers. The trick is in the answers
• Difference - Often asking for the MAJOR difference so that you have to compare. Again you need to analyze the answers you have to choose from carefully.
• Except -You are looking for the opposite of what you think
• Situational - They tell you a story with two yes and two no answers. Make sure you analyze the ANSWERS carefully
• True - So you have 3 wrong answers and ONE right answer
• False - Now you have three true answers and 1 FALSE. Pick the different one.
• Have in common - A group of words will revolve around one concept. For example Possibility of Reverter, Right of Reentry of Remainder are all words about Life Estates.
• Application - They want to see if you truly understand the concept and can apply it to the real world
• Accountable - Now the story wants to know who is responsible at the end of the day

Now you need to read the question for the 2nd time. This time you are reading to pull the key words and concepts. Use your scratch paper to jot down the words that have the meaning. Here is a key AHA - You can use the scratch paper for more than math. Answer the question in your mind but GET YOUR HAND OFF THE MOUSE! It is not time to answer the quesion yet. Even if you feel that you don’t have enough time - TRUST ME you have plenty. Do what I do and SIT on your hands. Look for the important words that are in both the questions and the answers. It is just as important to read the answers as it is to read the question. Pace yourself.

Now is the time to read the question for the third and final time. Make sure you understand EXACTLY what they are asking. Look for the hidden trick so you come out victorious. If you KNOW the answer - go ahead and click the button. If you are still not sure, book mark it so that it comes back to you at the end of the test. A secret key is to trust your GUT. Most likely your first answer will be right. You must resist the insanity of going back and changing answers. You don’t have to double guess yourself. Make sure you answer all the questions in the end. After all if you really don’t know it, you might as well guess since you were going to get it totally wrong for not answering.

So now you are armed with testing knowledge of how the write the questions to trick you up. Take the upper hand and peel that onion of a question apart so you won’t have any tears when you receive your passing grade!

What does it mean when the question is asking me to calculate the seller’s net?

The first deduction from the the sales price is the real estate commission, agreed.

For example, if you sold a property from $100,000 with a 5% commission, that means the agent earned $5,000 and the seller took $95,000. So the seller received 95% of the sale amount after paying the real estate commission.

The seller will use the 95% of the sale amount to pay off any encumbrances (ie mortgage) and closing costs. What ever is left is what the seller will net.

What you need to remember is that the sales price represents 100%. So 100% minus the commission percentage equals percent after commission.

So if you want to calculate:

Percent after commission = Seller’s Net After Commission divided by Sales Price

100% Sales Price - 5% Real Estate Commission = 95% Percent after Commission

Sales Price = Seller’s Net After Commission divided by Percent after Commission

$95,000 / 95% = $100,000

Seller’s Net After Commission = Sales Price x Percent After Commission

$100,000 x 95% = $95,000

Sample Questions:

After deducting $7,800 in closing costs and a 7 percent broker’s commission, the sellers received their original cost of $225,000 plus a $12,500 profit. What was the sales price of the property?

$7,800 closing costs + $225,000 original cost + $ 12,500 profit = $245,300 Sellers Net After Commission

100% Sales Price - 7% = 93% Percent After Commission

$245,300 Sellers Net After Commission divided by 93% Percent After Commission = $263,763 Sales Price is the answer

A seller agrees to lis his property on the condition that he will receive at least $47,300 after paying a 5 percent broker’s commission and paying $1,150 in closing costs. At what price must it sell?

$47,300 + $1,150 = $48,450 Seller’s Net After Commission

100% Sales Price - 5% = 95% Percent After Commission

$48,450 Sellers Net After Commission divided by 95% Percent After Commission = $51,000 Sales Price

Remember that you often have to to some type of conversion prior to your calculation and you will do just fine.

Announcing The Real Estate Class new web site. Your one stop destination for real estate education.

We offer:

• New Hampshire Real Estate Pre-licensing Classes
• Maine Reciprocal Licensing Exam Prep
• New Hampshire Reciprocal Licensing Exam Prep
• FREE Continuing Education classes for NH & ME with various instructors
• Seminars and workshops to meet all your education needs

And now you can sign up for al classes ONLINE!

Check it out at www.TheRealEstateClass.com

Who are real estate agents?

Well, according to the National Association of Realtors Member Profile for 2009 we are -

• Median age 54
• 60% are female
• 72% are married
• 96% are registered to vote
• Median Gross Income $36,700.
• Handled 7 Transactions last year
• 35% visit social networking sites regularly

We embrace technology - email, pdf, smart phones, gps, instant messaging, computers. We are involved in our communities. We volunteer. And we Vote.

We would have to work 101 hours per week for 50 weeks a year at $7.25 minimum wage to earn the same amount. We love our family and friends. Real estate allows for a flexible schedule and we work hard. 43% of us work 40-60 hours per week.

We love what we do or we simply stop doing it. We are in the business of real estate not just being busy for the sake of being busy. Real estate is the one thing you can sell that everybody truly needs - shelter.

Are you ready to join in the real estate career?

The Real Estate Class is starting soon in Bedford and Portsmouth. Flexible schedule, no hidden costs, all books and materials included. Be ready to take the test in 10 sessions. Class guarantee allows you take the class as many times as you need to pass the test.

Sign up online at TheRealEstateClass.com

How about owning a business and having a career that you can never be laid off from and you are able to make unlimited income? Ever thought about getting your real estate license? You have been a salesperson for how many years? Or your friends are always commenting on how you understand everything about houses. Why not take the next step and insure your future in the real estate business. Or maybe you know of someone interested in getting into the business. There is a lot of opportunity in the industry right now for the right people. This is the licensing class for you. So what are the details?

Classes are starting in Portsmouth on January 11. Monday & Thursday nights from 5:30-9:30pm for 10 sessions. No class on 1/18 and 2/15. Cost is $349 with all books and materials included. This 40 hour class is required by the State of New Hampshire before you sit for the exam. Come spend a few evenings investing in your future and have fun in the process.

This is a great time of year to put your house on the market for sale. Everyone else is waiting for Spring to roll around and in the mean time inventory dwindles. So let’s get your house out there while there is less competition. At this time of year you don’t have to worry about keeping the lawn mowed around here, just keep the sidewalks cleared. Buyers are out there wanting to take advantage of the extended tax credit so now is not the time to stall. Sure there is the hustle and bustle of the holidays, but the Buyers are serious and don’t want to be kept waiting.

The holidays also brings us great decorating ideas to boost our curb appeal. A freshly painted door with a simple evergreen wreath can look dramatic and elegant. Just painting the front door can work wonders for a tired entrance. Could a red door be in your future? If your house would look just hideous with a red door choose a color that compliments your house. Dark colors like black, brown and red can make more of an impact on the visual appeal of your home. It won’t matter a darn how great your home is on the inside if you can’t get buyers past the front porch.

Reaching the front porch with ease and safety are top priorities in the winter months. Make sure your driveway and sidewalks are absolutely clear of all ice and snow. Buyers want to feel safe and you want them to feel your home is the safest and easiest to take care of around. Take a look at the bushes and trees around your walk and drive and trim them back. Put down a new heavy duty, thick, decorative mat in front of the door for Buyers to wipe their feet on before entering. I have even seen heated mats out there that stay free and clear of snow and ice that work well on stairs.

Check your lighting and increase the wattage of all outdoor bulbs. The dark comes on fast this time of year and a well lit entrance is so much more inviting. See if you can put these outside lights on a timer. If you can’t put them on a timer just leave them on- period. Consider adding solar powered lights to the front walkway. Now there is lighting and then there are Christmas lights. If you are on the market it is not the year to win the city wide house decorating contest by driving up your electricity bill to astronomical proportions. The blow up Santa carousel with all seven reindeer should stay packed this year and ready for your next home. Small white lights on the shrubbery are fine but you don’t want your home visible from outer space. The Clark Griswold version of merry is most people’s version of tacky.

Winter decorations that work after the Christmas season include simple wreaths with bright red bows. Evergreen wreaths are beautiful but a rustic grapevine wreath with red berries works well too. Sounds like a trip to the craft store to me!Just get out the glue gun and have some fun. A simple wall hanging or decorative flag with a winter motif will add quick pizazz to your doorway. Go bolder with color in the winter, it will really pop against the white backdrop. Use colors like burgundy, deep blue, forest green, bright red and classic black. Fill a planter with evergreen branches, twigs with bright berries, holly with small lights to add a touch of sparkle. A trio of potted evergreen plants can add the color you are looking for without too much investment.

A little planning will go a long way it shortening your marketing time. For your final step in making the perfect entrance to your home. Take a look at your street numbers on the house. Are they easy to see from the street? If you can’t see them then you need to replace them with larger numbers. Make your house easy for everyone to find. Curb appeal is everything when selling. Buyers do judge the book by its cover. So make sure your house looks like the sweetest spot on the street when selling.

Join our enewsletter by emailing saldrich@kw.com 

(c) Shannon Aldrich

Keller Williams Coastal Realty, Portsmouth NH

When I have visitors to my home they often wonder why the TV doesn’t go on when they push the power button or why is the microwave clock dark. The simple answer is - power surge strips. I use them all over the house to reduce ‘vampire energy loss’. All of those fabulous electronics that I absolutely cannot live without are constantly sucking up electricity when plugged in. Anything that is plugged in is probably drawing some small bit of current when we are not looking. And if there is a remote control that goes with that equipment you are guaranteed that there is electricity is being used up when the equipment is waiting for you to turn it on.

Experts estimate that you can save from 5-10% off your energy bill by getting unplugged. For most of us that translates in $130 dollars in instant savings. A study at Cornell University put the average savings at a whopping $200 per household. The Department of Energy estimates that stand by power can be up to 20% of the total home energy use. Even your little tiny phone charger is bleeding energy and money from your wallet when it is left plugged in.

Along with the money there is the reality of using less energy and leaving a smaller carbon footprint in our wake. You can help save the environment without barely lifting a finger. Many of my strips are on the floor and I turn them on and off with my foot. But seriously, there are even smart power strips on the market that actually turn off appliances in vampire mode or turn of all appliances when the motion detector built in says no one has been in the room for an extended period of time.

When buying new toys (and we all need more toys - I currently have my eye out for a larger monitor), look for the Energy Star rating. Computers with this designation use 70% less electricity than a model without the designation. Back in the old days we were all told never to turn off your computer because it would not last as long. This is an “Old Wives Tale” that comes from the time before current time when mainframes roamed the world. So go ahead and turn off the computer. Push the power button and free yourself from the constant hum of the machines.

Visit the Department of Energy for more energy saving tips

Home Energy Saver - The first web based do it yourself energy audit from the Department of Energy

Energy Savers Booklet - Tips of Saving Energy and Money at Home 

Shannon Aldrich (c) 2009

Keller Williams Coastal Realty  Portsmouth NH

Subscribe to our monthly enewsletter by emailing saldrich@kw.com

Moody’s Analytics economists report that the Great Recession is technically over. Good news even if many of us are not feeling the effects quite yet. New Hampshire is so lucky to have 92.8% employment and real estate transactions have begun to rise over 2008 during the past five months. Even home prices are starting to stabilize and the prediction is that home prices will actually rise in 2010. New Hampshire has been way luckier than most states in the region in loss of value in homes. Several states have seen the value of their real estate decrease by a whopping 50%. Here in New Hampshire prices are expected to bottom out at about 20 to 25% below the peak prices of 2005.

The expanded tax credit has a lot to do with this recovery. For home sellers the extension of the credit signals it is time to sell that home you have been living in for the past 5 out of 8 years and step up to a new one. And for first time home buyers it signals a time to buy when prices are at their most affordable and interest rates are still low. And for both sellers and buyers this signals that owning a home in New Hampshire is an investment in granite. 

Average selling price in Rockingham county is now $295,194 and properties are selling with 95% of list price. Nationally 60% of all sellers took at least one price reduction according to the National Association of Realtors 2008 Profile of Home Buyers and Sellers. And average days on market to sell those homes was 130 days. 2,073 single family homes have been sold in Rockingham county between 1/1/09 and 11/19/09. That’s 2,073 homes in 323 days or 6.4 homes SOLD every day!

And in Strafford county is $207,280 is the average selling price. Single family homes are selling within 96% of list price in an average of 139 days. During this same time frame, 738 homes have sold or 2.27 homes SOLD every day this year!

The real estate market in New Hampshire is becoming robust again but in the mean time understand that people are buying and selling homes every day! So why not get into the game and start pursuing your real estate dreams. Let’s keep the granite state rock solid. The Real Estate Seacoast Team is ready at any time to get you moving in to the right home.

(c) Shannon Aldrich, Keller Williams Coastal Realty Portsmouth NH

Join our enewsletter by emailing saldrich@kw.com

View the 2009 Seacoast Sold Report at www.RealEstateSeacoast.com

When Congress expanded the Homebuyer Tax credit to redefine eligibility it opened the doors to Sellers. The new definition says ‘you must have used the home sold as a principal residence consecutively for 5 of the previous 8 years.’ All current home owners who purchased prior to November 6, 2001 are now able to move up to a new home and get a $6,500 tax credit to boot. This is in place today but it ends April 30, 2010.

There is no time  like the present to move up to your next home or downsize into your dream home. The cost of the new home can be up to $800,000 and still qualify. Plus they have increased the income limits! You qualify as a single person earning up to $125,000 and $225,000 for married couples. That’s a $50,000 increase for singles and $75,000 for married. So now your income to buy that next house is in line for the credit.

So there is no better time to get your home on the market. You need to get moving if you are going to take advantage of this offer. But I hear you saying -(or maybe screaming) “THE HOLIDAYS! I just can’t do it over the next two months. Won’t it be better to wait until Spring? There aren’t any serious buyers in the winter.” Of course there are going to be buyers, they are out there wanting to take advantage of the tax credit too. So what needs to happen - Sellers need to go on the market now so there are home to buy. Sounds pretty simple doesn’t it. Well that’s because it is.

This is a great time of year to sell. Let’s look at the positives - the house is decorated, if you have a live tree the smell of pine is delicious, we are burning wood in the fireplace, baking cookies, etc. All very homey and enticing. Everyone is cleaning up to get ready for the onslaught of visitors and family. You know that any Buyers coming to see your home are serious and ready to buy. It is too busy a time of year to just be out looking around.

Here is what you don’t have to do - move over Christmas. Nothing is instant. The marketing of a home takes a few months, so that is why we need to get working right now to get you to the goal by April. You must have your new home under contract by April 30, 2010 and close by July 1, 2010. You want to be available now in order to take advantage of the tax credit. And if you get a chance - thank your local Congressman or Senator!

(c) Shannon Aldrich, Keller Williams Coastal Realty Portsmouth NH

Join our enewsletter by sending an email to saldrich@kw.com

Visit www.RealEstateSeacoast.com for the latest Seacoast Sold 2009 Report online