Tag Archives: larson

05.16.17
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How to Convert FSBOs into Clients–Part 2

We all like to save a few bucks here and there, especially when it comes to home ownership.

But some boot-strapping home owners take DIY too far.

Sure, it makes sense to teach yourself how to fix a leaky faucet or replace a broken door hinge.

But at what point does this self reliance go too far?

The answer: when you decide to sell your home yourself.

Some people see listing their home for sale by owner (or FSBO) as a way to save an agent’s commission for themselves.

“I can put a few signs in the front yard,” they tell themselves. “And what’s so hard about taking some pictures and posting them online?”

What they don’t realize, however, is that their choice to go it alone could potentially cost them a lot of time and money.

So how do you turn FSBOs into a client?

In short, through education.

Inform FSBOs of the risks they’re unwittingly taking on and explain the possible negative implications of those risks.

Read Part 1 Here

How to convert fsbos

5. They will take longer

On average, FSBO listings will take longer to sell than agent listings. Unless the person selling without representation already knows a person who wants to take the property, this can mean a lot more time spent on the market. 

For similar reasons, properties listed by the owner are often incorrectly priced (watch here for some of the most common causes of inflated home prices).

Consequently, close to 20 percent of FSBOs are unable to sell their homes within their chosen time frame.

6. It’s a long lonely road for an FSBO

For better or for worse, FSBOs are lone wolves.

If an FSBO runs into a problem or has a question, they are all alone. Real estate agents have mentors and brokers to go to for help—agents have a network to go to for support. FSBOs do not.

7. Marketing is harder than it looks

FSBOs often underestimate the difficulty of listing and selling their home.

Think putting up a yard sign will be enough to sell your home? You’re not alone.

33% of FSBOs rely on yard signs to market their home.

Only 13% of FSBOs use the Multiple Listing Service (MLS) website. 

But what many of these sellers don’t realize is that getting on the MLS is not necessarily enough to make the sale.

Again, as an agent you have a network of connections and prospects who might be interested in a home that would otherwise sit unsold for an FSBO.

8. Less money, more problems

The name of the game for FSBOs is saving money.

However, odds are good that a for sale by owner will be nickel and dimed until their commission savings are nullified.

How much will the home inspection cost? What about signage and flyers? How about that home warranty? The list of small costs that are a necessary part of the sales process can add up.

And that’s to say nothing of the investment of time required for an FSBO.

Without the same resources as an agent, FSBOs wind up making a large investment of time to sell their home.

How much is your time worth? 

Read Part 1 Here

Florida real estate school

About Larson Educational Services:

Utilizing 40 years of real estate training and professional education experience, Florida real estate school Larson Educational Services is the premier provider of Florida real estate licensing, exam preparation, post-licensing, CAM licensing, mortgage loan originator licensing, and continuing education in Southwest Florida. Classes are available in Fort Myers, Naples, Sarasota, and online. We are an approved Florida Real Estate School (License #ZH1002299), Florida CAM School (License #PRE31), Florida Insurance School (License # 370501) and NMLS Approved Course Provider.

Brad Larson

Larson Educational Services

13040 Livingston Rd. #12

Naples, FL 34105

info@LarsonEd.com

239-344-7510

www.LarsonEd.com

05.11.17
by

How to Convert FSBOs into Clients–Part 1

We all like to save a few bucks here and there, especially when it comes to home ownership.

But some boot-strapping home owners take DIY too far.

Sure, it makes sense to teach yourself how to fix a leaky faucet or replace a broken door hinge.

But at what point does this self reliance go too far?

The answer: when you decide to sell your home yourself.

Some people see listing their home for sale by owner (or FSBO) as a way to save an agent’s commission for themselves.

“I can put a few signs in the front yard,” they tell themselves. “And what’s so hard about taking some pictures and posting them online?”

bad photo

Actually, a whole lot about real estate photography is easy to overlook. For starters, getting rid of the stuffed animals and Simpsons-esque furniture. (Photo courtesy of terribleagentphotos.com)

What they don’t realize, however, is that their choice to go it alone could potentially cost them a lot of time and money.

So how do you turn FSBOs into a client?

In short, through education.

Inform FSBOs of the risks they’re unwittingly taking on and explain the possible negative implications of those risks.

How to convert fsbos

1. The potential for scams

FSBO sales create the potential for fraud by both parties.

Some FSBO sellers will ask that their buyer go forward without an agent as well. “We can make this deal without either of us losing money to an agent,” they might say.

Hoping to save a few extra dollars in the deal, the buyer might agree, throwing down an earnest money deposit in the process. If the FSBO decides they don’t like the deal, the buyer might be out of luck without a valid contract or receipt, saying goodbye to their EMD.

FSBO scams can include producing fake papers, such as appraisals or loan documentation, or purchases through a fake third party, like a non-existent attorney.

Ask an FSBO why they would open themselves up to these potential scams. Tell them you’re a trained professional who specializes in these transactions and, believe it or not, they’re not as easy to pull off as they might seem.

2. For the love of paperwork

One of the biggest unforeseen obstacles FSBOs encounter is the daunting paperwork of a real estate transaction.

Maybe the FSBO did a Google search and found a one-size-fits-all contract and thought their work was done. But do they actually understand what’s on that contract? Are they capable of customizing it?

Ask the FSBO how valuable their time is and how it could be used in better ways than learning the ins and outs of real estate contracts they may use only a few times in their life.

Sales contracts, lead paint disclosures, property disclosures—inform the FSBO that any missteps in these papers can lead to legal problems that could’ve been easily foreseen by a real estate agent.

3. Bad deals

FSBOs aren’t as practiced or as knowledgable at finding discrepancies in contracts before signing on the dotted line. For example, let them know that they may have to pay lots of money to back out of a bad deal if there are some oversights in their paperwork. You can help save them that money and headache.

4. They’ll get less money

FSBOs make about 16% less than median sales prices. This could be due in large part to them not having the time or resources to devote to understanding their home’s market value. Likewise, they may not know how to accurately read market reports, and they might not know how to create a proper marketing campaign.

FSBOs who sell to their friends or someone they knew, dropped their median sale price from $210,000 to $151,900.

Why? Because their friend expected a deal.

Check back next time for part 2.

Florida real estate school

About Larson Educational Services:

Utilizing 40 years of real estate training and professional education experience, Florida real estate school Larson Educational Services is the premier provider of Florida real estate licensing, exam preparation, post-licensing, CAM licensing, mortgage loan originator licensing, and continuing education in Southwest Florida. Classes are available in Fort Myers, Naples, Sarasota, and online. We are an approved Florida Real Estate School (License #ZH1002299), Florida CAM School (License #PRE31), Florida Insurance School (License # 370501) and NMLS Approved Course Provider.

Brad Larson

Larson Educational Services

13040 Livingston Rd. #12

Naples, FL 34105

info@LarsonEd.com

239-344-7510

www.LarsonEd.com

04.27.17
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6 Tips for First-Time Home-Buyers

When people are faced with the unknown, they will often choose inaction.

Why?

Because inaction is the default–it’s inside your comfort zone to do what you’ve always done.

That’s why so many potential first-time home-buyers often bite on the first house in their price range or simply choose to continue renting. 

Here’s how you can handle the unknown of buying your first home.

1. Decide if buying is right for you

So often, people talk about renting as “throwing money away.”

Is it really?

You need a place to live, don’t you? So you pay money in exchange for a roof over your head.

Just because you’re not building equity with a rental like you would with your own property doesn’t mean the rental is a waste of money.

Think about it this way: it might be cheaper to grow your own food rather than buy groceries every week, but does that mean you’re “throwing money away” at the grocery store?

Does that mean you should buy a farm? 

Consider your long-term goals and ask yourself if owning a home fits with your personal, professional, and financial future.

And try out this excellent interactive “Rent Vs. Buy” calculator from the New York Times: https://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html

2. What you’re approved for is not necessarily what you can afford

If you’ve decided that home ownership is right for you, then getting pre-approved for a loan should be one of your first steps you take.

A mortgage loan originator will look at your financial situation and determine your buying power.

You might be pre-approved for, say,  a $350,000 mortgage, but does that mean you need to find a $350,000 home?

Absolutely not.

And not every loan originator will be created equal. They are an integral part of the home-buying process, so you should shop around for the best one the same way you would for your real estate agent.

Your agent and her brokerage may have a relationship with a loan originator, but do your due diligence and see if there are other options in the area.

3. Find a great agent

The agent who comes recommended by your aunt or your best friend may not be the best agent for you.

Your needs in an agent may be different from the people who recommend them. 

And the best agent may not be your friend. It’s a nice thought to help your real estate agent friend by giving him your business, but a lot of friendships have ended when money came into the equation. 

Working without an agent is an even more treacherous road to wander down.

An individual may sell their own home as a for sale by owner listing (FSBO) in an effort to save on the agent commission.

In some rare cases, these FSBO sellers may request that you purchase without an agent, just as a way to keep agents out of the transaction.

Not a good idea.

Find an agent you trust and who can serve as your expert on a potential neighborhood or a certain property type. 

4. Try to be objective

Of course you should have some sort of emotional attachment to the home you eventually purchase. However, there are a handful of factors that can emotionally sway your decisions.

For example, you might be in a pinch for time and need to move in fast on a purchase. Or maybe a certain property just hit the market, or there are other offers on the property.

Utilize your agent in these situations. They will be able to provide you with more objective information, such as recent purchase prices on comparable homes.

5. Consider the true cost of ownership

When considering the monthly costs of home ownership, there’s more to it than just insurance, taxes, and the loan.

Routine (and not so routine) maintenence can add up quicker than you think. And deferring maintenence costs a lot more than routine maintenence.

There’s no landlord or property manager to save you now: it’s all coming out of your wallet.

Set aside money every month for maintenence–not only for routine fixes, but for emergency stuff as well, so these extra costs don’t come at the wrong time.

Also, consider how much will your utilities cost. Find out if there is reliable internet and cell service in the home as well.

6. Don’t bank on funding your retirement

When you buy your home as a place to live, it’s best not to think of it as an investment.
It’s not important what your home is worth at this moment, all that matters is that you’re happy with it in this moment.

When it comes time to sell, all that will matter is how much it will be worth then.

And even if you take a loss on the sale, consider the years of use and happiness you got from the property.

Sign up for classes by visiting us at LarsonEd.com.

Larson Educational Services

13040 Livingston Rd. #12,

Naples, Florida

34105

239-344-7510

LarsonEd.com

04.25.17
by

Breaking: Home Prices Hit 32-Week High

Good news: according to the National Home Price NSA Index, home prices have hit a 32-month high! Time to pop the bubbly, right? 

Maybe not. David Blitzer, the Managing Director and Chairman of the Index Committee, says that real estate professionals may need to curb their enthusiasm.

“New home construction is now close to a normal pace of about 1.2 million units annually,” he says. “Most housing rebounds following a recession only last for a year or so.”

Just like any other change in the market, you’re better off staying consistent rather than out-thinking yourself with (relatively) short-term market fluctuations.

Or, perhaps you can use this information as a motivation to push through the end of a tough month. It’s your choice. Like so many things in life, your results will be largely dependent on how you process the information you’re given.

Is this a negative or a positive? The call is yours.

Source: Inman.com

home prices on rise

Larson Educational Services

13040 Livingston Rd. #12

Naples, Florida 34105

239-344-7510

larsoned.com

larson-florida-insurance-school

 

04.20.17
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Are we the best family-owned business in SWFL?

IT’S THAT TIME OF YEAR AGAIN, FOLKS!!!

Gulfshore Business Magazine is doing their “Best of Business” issue, and we are once again nominated for Best Family-Owned Business.

If you still think we’re the best family-owned business in southwest Florida (or in the whole dang universe, for that matter), then click the link below and fill in “Larson Educational Services” at #20.

Spread the word!

https://www.surveymonkey.com/r/bestofbusiness17

04.11.17
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5 Tips for Health Insurance Client Retention–Part 1

Health insurance client retention

When too many of your clients are cancelling their health insurance policies, you start to feel the impact at all levels of your business—lost clients could increase administrative costs and you could also see issues with debt management if you’ve already budgeted certain commissions that are no longer coming in.

And acquiring new clients is not cheap.

Here are 5 tips to make sure you choose clients who will stick around:

1. Pre-Qualify

The road to client retention starts before your relationship with a client even begins. First, you want to discover if you and a particular prospect are a good fit for each other.

In all industries, the best salespeople ask the right questions. 

You may also benefit from a shift in thinking: rather than focusing on acquiring clients, think about it in terms of finding out if a prospect is a good business partner. Ask yourself, “Is she a good fit for the services I offer?”

You must be willing to say no to certain clients if you think you cannot provide them with the services they need. Or you may say no if you foresee this prospective client requires a larger investment of time than you can afford.

The same insurance product won’t fit every potential client. Determine their budget.

If, for example, you run into a prospect who qualifies for high subsidies, it will be important for them to know the value of supplemental products, though they may not have the budget for these voluntary products.

Work together with them to find the best potential options to fill in the gaps created by high-deductible ACA plans, for example.

2. Find Your Niche

You will need to project professionalism and trustability to potential clients. If they have any qualms whatsoever about your ability to serve their health insurance needs, assure them that you specialize in this field—you are the content expert. 

Oftentimes, you can put an apprehensive prospect’s worries to rest by letting them know what others in their situation are purchasing. Decisions of any kind are difficult, let alone when healthcare is involved.

Make the decision easier by providing them with a road map of previous clients’ experiences.

The language you use may sound like this:

“This is our most common package.”

“Many of our clients are happy with this package, and here’s why.”

“This is our most popular package.”

Again, you don’t want to sell them something they can’t afford—sure, you won’t be able to retain them as a client, but more importantly their needs won’t be met.

Click here to read part 2!

naples real estate school

Larson Educational Services

13040 Livingston Rd. #12,

Naples, Florida 34105

LarsonEd.com

239-344-7510

03.28.17
by

Is loyalty dead?

Is loyalty dead?

The Oakla–sorry–the LAS VEGAS Raiders, who have called Oakland home since their last relocation in 1995, are ditching one of the most fervent fan bases in the NFL and moving to the Sin City.

Some are calling the move soulless on the team’s part–a slap in the face of Raider Nation.

That may be true.

However, we at LarsonEd want to assure you, our fans, that we won’t be skipping town on you. We wouldn’t be the company we are if it weren’t for our students, so we want to say thank you for coming to us for your real estate and insurance educational needs.

We promise to continue reciprocating that loyalty right back to you.

Photo courtesy of Raiders Twitter.

Sign up for insurance and real estate classes in Naples, Fort Myers, Sarasota, and online: https://www.larsoned.com/

Larson raiders

Photo courtesy of Raiders Twitter

03.23.17
by

#TBT to King Ricky the Merciful!

This #TBT goes back to 1951, during the reign of King Ricky the Merciful.

Elk River, Minnesota–the Larson family’s home town–was holding a contest to crown the king or queen baby of the area.

All over town, the local merchants posted pictures of babies in their shop windows–so many babies you would’ve there was a town-wide missing baby epidemic.

Once they’d surveyed the pictures, people then stuffed the ballot boxes inside the shops to vote for the best baby.

Of course Ricky Larson, barely one year old, put his hat into the ring with this classic picture.

And who could resist that toothless smile? Those jean coveralls? He even had his hands out front in ready position, like he was about to go work on the family farm.

“It was a great photo,” Rick says now. “Really compelling.”

The town of Elk River apparently agreed, as Ricky Larson won the “Stuff the Ballot Box” contest. (“That was kind of an ass-kicking,” he says.)

He was awarded a little four-inch trophy (long since lost to the ages) that declared him King Ricky of Elk River.

So the next time you have Rick teaching your class, don’t forget to call him by his true name: King Ricky.
pjimage

About Larson Educational Services:

Utilizing 40 years of real estate training and professional education experience, Florida real estate school Larson Educational Services is the premier provider of Florida real estate licensing, exam preparation, post-licensing, CAM licensing, mortgage loan originator licensing, and continuing education in Southwest Florida. Classes are available in Fort Myers, Naples, Sarasota, and online.

Brad Larson

Larson Educational Services

13040 Livingston Road #12

Naples, Florida 34105

239-344-7510

LarsonEd.com/Insurance

info@larsoned.com