Realty Vs Real Estate Vs Real Property

Realty and personal property terms have often been confused as to what they exactly mean. Here we will clear that right up for you. We will look at the terms personal property, realty, land, real estate, and lastly real property.

Let’s begin with personal property. Personal property also known as chattel is everything that is not real property. Example couches, TVs things of this nature. Emblements pronounced (M-blee-ments) are things like crops, apples, oranges, and berries. Emblements are also personal property. So when you go to sell your house, flip, or wholesale deal, you sell or transfer ownership by a bill of sale with personal property.

Realty.

Realty is the broad definition for land, real estate, and real property.

Land

Land is everything mother nature gave to us like whats below the ground, above the ground and the airspace. Also called subsurface (underground), surface (the dirt) and airspace. So when you buy land that’s what you get, keep in mind our government owns a lot of our air space.

Real Estate

Real estate is defined as land plus its man made improvements added to it. You know things like fences, houses, and driveways. So when you buy real estate this is what you can expect to be getting.

Real property

Real property is land, real estate, and what’s call the bundle of rights. The bundle of rights consist of five rights, the right to possess, control, enjoy, exclude, and lastly dispose. So basically you can possess, take control, enjoy, exclude others, and then dispose of your real property as you wish as long as you do not break state and federal laws.

Lastly there are two other types of property we should mention.

Fixture

Fixture is personal property which has been attached realty and by that now is considered real property. So you would ask yourself upon selling to determine value “did you attach it to make it permanent?” The exceptions to this rule are the garage door opener and door key, these are not considered fixtures.

Trade Fixtures

Trade fixtures are those fixtures installed by say a commercial tenant or can be the property of the commercial tenant.

I hope this clears up some misconceptions about personal property, realty, land and real estate and now fixtures and trade fixtures!

Posted in general | Tagged , , | Comments Off on Realty Vs Real Estate Vs Real Property

The Advantages and Disadvantages of Travelling Alone

One of the main purposes of travel is to gain experiences that allow us to grow and develop as individuals and it is important that people travel the way that bests suits them at a particular time. For example, I like to go on adventure holidays and this invariably includes a small group and expert guide, and I frequently participate in writing retreats around the world with like-minded people. However for me, the real joy of travelling has always been to take off on my own and just ‘see’ what comes along the way. Of course this can sometimes be fraught with frustrations, difficulties and even dangers.

Advantages of travelling alone

  • Freedom
    Most people who travel alone generally cite freedom as the great motivating factor: freedom to please themselves, go where and when they want, change their plans on a whim when they hear about something that is a ‘must’ to see, and to accept spontaneous invitations by locals.
  • No compromises
    This is associated with the previous point. Even if travelling with one other person, be it friend, colleague, lover or spouse, there will always be some compromises required. Not everyone has the same interests or the same energy levels, some people need to be emotionally supported all the time, others are apathetic, some have different attitudes to time. With solo travel, there is no peer pressure over finances, the unspoken need to divide up restaurant bills equally, or guilt trips when you want to go off on your own for a while.
  • Meeting people
    Travelling solo does not mean that you will always be alone. In fact, it allows you to meet more people because other tourists and locals find an individual traveller more approachable than those in a tightly-knit group. Also, people in groups have very little need to reach out to others for communication. I have met more people, had more interesting conversations and invitations and made more long-term friends while eating alone in foreign restaurants or sitting alone at bars. But then I am gregarious. Travelling alone allows you to choose the people you wish to spend time with rather than having to face the day-after-day annoyances of the inevitable clowns and whingers found in any large group.
  • Discoveries
    There is a real sense of discovery involved in travelling on your own, and that includes self-discovery. You don’t have to rely on an often ill-informed guide to lead you around on a leash, and there’s the surprise and thrill when you find something you weren’t expecting, like the time I became lost and ended up in a small Bavarian village with a monastery that contained a library with tens of thousands of Medieval manuscripts. Travelling alone allows you to discover more about yourself as you overcome simple challenges such as missing a bus or boat and realizing there is no other for a day or a week. Then there is the sense of achievement when solving much more challenging problems like finding yourself lost in a strange town at midnight or running out of money on a holiday weekend with no ATM in sight and the banks closed.

Disadvantages of travelling alone

  • The single supplement
    For those who like to stay in decent hotels, there is the unfair single supplement that can add thousands to the cost of your trip.
  • Lack of help
    There is no one to watch your luggage while you go to the restrooms at airports or train stations, no one to help with persistent touts, no one to be there for you if you get sick or if you are being stalked or harassed by a determined male in the street.
  • Photos
    There are times when I would like to have had more taken of myself in certain places, but there again, there are always people willing to snap one or two for you.

I know there will be times in the future when I will travel as part of a group out of choice because I want to visit areas where it is just not possible or sensible for a woman alone, or because I wish to be with family or like-minded people. However, due to my particular personality traits, my preference is to travel alone. I guess it really doesn’t matter how people travel, but that they travel.

Posted in general | Tagged , , | Comments Off on The Advantages and Disadvantages of Travelling Alone

Best Loans For Single Mothers – Learn How to Get Approved Fast

If you are a single mother, you may be among the many single parents who struggle to make ends meet each and every month. Many single mothers have no credit, slow credit, or even bad credit. Many single mothers are young and have not yet had a chance to establish positive credit history. There are different types of loans that you can qualify for as a single mother regardless of you past credit performance and bad credit history.

Personal Loans For Single Mothers

A bad credit personal loan is a loan that allows you to meet any needs that you might have. Perhaps you need money for major purchases like furniture or a computer. Or maybe you want to take a trip, pay for a class, or even buy a car. You can barrow amounts from $ 5oo up to as much as $ 15, ooo when you are applying for this kind of loan. Your personal loan can be ether secured or unsecured. A secured personal loan requires you to pledge collateral.

An unsecured personal loan does not require you to pledge collateral. However most single mothers do not have adequate collateral to pledge, and their only option is the unsecured version of the personal loan. To improve your chances for getting approved in the amount that you need, you can always ask a creditworthy cosigner to apply alongside you. This person can be a parent or other relative, friend, or anyone who will agree to pay your loan payments should you become unable to do so. Many lenders will allow you cosigner to be released from liability of payment once you have paid a certain number of payments on your loan.

Car Loans For Single Mothers

Single mothers who are in need of a new or used vehicle can qualify in most cases for a car loan. Because a car loan is secured by the car itself (or other vehicle), lenders are more lenient when approving car loan applications. A car loan of this type is usually funded for a period of four to seven years, depending upon the purchase price of the vehicle and whether or not you have a down payment. Having a down payment is the best way to purchase a car because it will make your monthly payments lower and easier to manage. Car loans are usually for $ 20,000 or less.

Cash Advance Loans For Single Mothers

Another option is the cash advance loan. This type of loan requires no credit check, making it the easiest to get loan not only for single mothers but for anyone with insufficient credit history. This loan is made for a short period of time, usually a month or less, and typically around the time of your next pay date. The only requirements to receive a cash advance loan is that you have a checking or savings account and a job that allows you to bring home a weekly, bi-weekly or monthly paycheck. Single mothers who receive benefits from Social Security, SSI, or other programs can also qualify for the cash advance loan. Cash advance loan amounts are available in amounts from $ 350 to $ 1,500, and the amount you can borrow will be based on your income.

Posted in general | Tagged , , | Comments Off on Best Loans For Single Mothers – Learn How to Get Approved Fast

Seven Cover Reviews of the Best Travel Trailer Covers Sold on the Internet and Retail Stores

Usually an outdoor enthusiasts begins to show interest in a travel trailer when they feel that they have outgrown the “sleeping in the outdoors or tent” phase and are ready to enjoy the luxuries of home and yet still have that feeling of living & camping outside by the ocean or lake or in the mountains or desert. Purchasing a travel trailer is an investment that the RV owner hopes will last for many years and numerous excursions. Travel trailers can and will last for many years, sometimes decades. The interior will keep its looks as long as it is protected from sunlight exposure. If an RV is left uncovered the sun’s UV rays will beat down on the camper and fade the interior upholstery, curtains, blinds, carpets, and bedding. The exterior will show its age a great deal faster than the interior. In only a matter of years a travel trailer that is left unprotected from the weather, will exhibit quick and steady exterior damage when the decals fade, crack, spilt and eventually wear off. The plastic window and door seals will turn gray to black in just a year. The welded seams that connect the sides will expand and contract with every snow fall because freezing/melting cycle that occurs when the snow melts on the roof crevices but remain in the crevice, then re-freezes in the tiny, microscopic crevices. These seams will expand inevitably with the freeze cycle that causes a widening of the connecting seams. This constant cycle of water freezing, melting and re-freezing will eventually cause problems with the roof which results in very costly repairs.

The easiest way to prevent the aging process on your travel trailer is to cover it with the best RV cover for the area in which the travel trailer will be stored and for the time in which you will be storing your camping trailer. With so many RV covers on the market how are you going to be able to find the cover that you need?

For the most part, all of the deluxe RV storage covers discussed in this article are sold on the Internet (as well as Walmart, Sears, and Cabelas) and are basically made of the same material (polypropylene) with few differences. Advertised as deluxe winter snow covers these travel trailer RV covers, (Expedition, ADCO, PolyPro 3, Camco and CoverKing) are generally made of triple-layered breathable non-woven polypropylene. The roof/top of the cover is made to accommodate the AC on the roof and is usually large enough to extend over the sides to protect the awning. At the joining seams where the roofing top meets the single layer of polypropylene sides there are vent flaps that allow the cover “to breathe”. These vents prevent wind friction and moisture buildup that would cause mold and mildew to develop. The sides have several long zippered entry panels that will allow you access to your travel trailer during the storage period. The entire cover is usually secured with an integrated tie-down strap system with adjustable click-close buckles and tension panel flaps in the front and back of the travel trailer that reduce cover stress when tightening or loosening the straps on the cover. This gives the RV cover a semi-custom fit. The major differences between all of these winter snow covers comes in the price and the length of the warranty of the product.

Winter Covers for Travel Trailers 20-33 ft Cost & Warranty

Expedition by Eevelle Cost: $205 – $321 Warranty: 3 years

ADCO Designer made with Tyvek Cost: $262 – $365 Warranty: 2 years

Poly Pro 3 by Classic Accessories Cost: $273 – $341 Warranty: 3 years

Camco Ultraguard Cost: $262 – $415 Warranty: 2 years

CoverKing 600 Denier Presidium Cost: $375 – $575 Warranty: Repair for 1yr

When a travel trailer is stored through the summer in the extreme Southeast and Southwest, the cover must be made from an extremely rugged durable woven material. Travel trailers that are in the sun year-round must have a cover with ultimate UV protection. Winter snow covers (like the Expedition, PolyPro 3, Camco Ultraguard, CoverKing Presidium & the Tyvek ADCO cover) disintegrate within a few short months if they are used to protect the RV through the summer. The non-woven fabric cannot stand up to the intense UV rays in this area of the United States. There are two RV covers made of woven material. The first cover that is made with the newest technology in UV block protection is called the PermaPro RV cover made by Classic Accessories. This RV cover is backed by the newest technology in extra strength UV block protection. The PermaPro cover is made of a light weight extra strength ripstop fabric that is tear resistant with nylon reinforcements in the material. The fabric resembles that used in parachutes and athletic wear. This water-repellent fabric repels rain and snow to make it an all season protective RV cover. This travel trailer cover ranges in cost from $375 – $505 and is backed by a four-year warranty.

The Goldline RV cover sold by Eevelle has long been recognized as the best RV cover by customers and dealers alike. The Goldline RV covers are designed to outperform every other RV cover in all the critical categories of RV protection- strength, durability, water repellency, etc. The extra strength yet supple Goldline Tru-weave woven fabric can handle the strongest winds and can stand up to the extreme UV rays of the sun as well as being a water-repellent rain & snow semi-custom storage cover. This travel trailer cover ranges in cost from $455 – $578 and is backed by a five-year warranty. The Goldline is also the only RV cover made for small travel trailers (10 – 20 ft.) as well as the extremely large ones (up to 46 ft. long).

PermaPro and Goldline are the only extra strength travel trailer covers that can be used as summer storage covers. Their woven design stands up to the winds that accompany winter and foretell the change of seasons. Both of these covers are truly all season RV covers that will protect the investment you made into your travel trailer as well as all the upcoming vacations & excursions you will take well into the next several years.

Posted in general | Tagged , , | Comments Off on Seven Cover Reviews of the Best Travel Trailer Covers Sold on the Internet and Retail Stores

Manage Debts the Smarter Way!

Spiraling debts can be a cause of concern for any borrower. They can create an adverse effect on the financial status of the borrower. Wondering how to deal with the troublesome situation? If you are facing financial hardship due to them, it is time to seek help. Debt management might be the solution to all your problems! Read on and find out how …

Know why should you seek this kind of service?

O One affordable monthly payment
O Reduced credit repayments
O The guide to a debt free future

The truth is that credit card debts are usually an outcome of unplanned spending and late repayments. They are the worst debts you would have encountered! You have a number of options to get rid of such problems.

When you opt for solutions with a team of financial experts, the professionals will assess your current financial situation and help you choose options on a spending plan. You can seek help from such experts. They will negotiate terms of your debts with creditors as well! In simple words, they will take care of all kinds of debt problems on your behalf.

There are several ways of managing this kind of problem. To start with, you could avoid credit card usage as much as possible or opt for consolidation finance as a part of the solution. You must begin by trying not to spend too much over your usual balance. This will help you ease your debt worries. Doing so, will ensure that you are on the road to a debt-free life sooner than you had imagined!

Managing payment of credit card bills can be one of the major contributing factors of managing such kind of problem. It saves a large chunk of your money with one single payment every month, well within your reach! It is much simpler to pay just one bill every month. Here, if you are burdened by this kind of problem, you need not put yourself through any more stress! By following this kind of advice, you can manage your financial problems easily. You can also reach out to financial experts who can take care of your financial predicament.

You must consider these kinds of solutions only after a careful analysis of your personal circumstances and constraints! Make sure you make the company aware of your problems. This will only help arrive at a suitable solution.

Posted in general | Tagged , , | Comments Off on Manage Debts the Smarter Way!

Last Will And Testament Provision For Burial

A will or testament provides information about the transfer of property, ornaments or land, from the testator to his beneficiaries, after his death. Everyone, regardless of age, needs a will. Without a will people wouldn’t know to whom their assets would go. A will is a general term and is used as the instrument in a trust, while testament applies only to dispositions of personal property.

Besides mentioning, as to who would own the property, after the death of the testator, the last will and testament also provides details about, carrying out the burial of the testator. He appoints an executor, as his personal representative who takes over the responsibility of paying his left over debts, obligations as well as pays for his funeral expenses. However, the executor is not entitled to get any surety bond connected to the last testament.

A testator may mention in his last will, the name of a particular organization that would conduct the rites of his burial or transference. He may also put a clause, which specifies that, his body be sent without autopsy or embalming, to a funeral home designated by the organization. A copy of the last will is given to the funeral home by the organization, as it helps in preparing and facilitating the transportation of the body.

The last will and testament carries details about the testator’s wishes, including whether or not his body be enshrined or entombed at a chosen place after death. Since the rites of burial and transference can be very elaborate, detailed, thorough, and lengthy, the organization may incur an extensive cost to carry out the rites. In such a case, the testator can make pre-arrangements with the organization, by donating money that would assist them in carrying out his last wishes. The appointed executor is responsible to pay for the burial expenses in case the testator has not made such arrangements. The last will and testament provision for burial gives details of performing the final rites as per the wishes of the testator, soon after his death.

Posted in general | Tagged , , | Comments Off on Last Will And Testament Provision For Burial

Homeowners Guide to Home Insurance Discounts, Reduced Rates and Savings

In today's economy, many homeowners are juggling higher bills on less earnings – facing tight family budgets in the wake of rising costs, credit limits or even job loss. Yet there's no need to struggle with the cost of home insurance. Despite industry increases, homeowners may be able to reduce their insurance rates by as much as 30 percent.

Neverheless, many homeowners are not using insurance discounts to lower rates – even those who apply discounts may qualify for more savings than they're getting. And lowered rates are still possible, even in today's economy.

Consider the findings reported by independent insurance agent association, Trusted Choice, in a 2009 national survey:

"53 million household responders 'admitted they are probably not taking advantage of all homeowners insurance discounts or said that they simply did not know' about policyholder discounts they are reasonably qualify for."

The survey also found that the largest percentage of respondents, about 26%, estimated they save 6-10% on their insurance premiums by using discounts. In fact, many insurance consumers could be saving significantly more-as much as 30%, according to independent insurance agencies, which often shop on behalf of consumers and help them find discounts and compare rates.

Homeowners are usually aware of the more common discounts – such as a multiple policy discount to insure both home and auto under one carrier. But there are other discounts and savings they miss.

How savvy are you as a homeowner and insurance consumer?

Find out using this quick list to explore or measure your potential for insurance discounts. It's also the knowledge you and your insurance agent need to reduce rates for savings:

  • Dual duty – Do not overlook the most common discount available: multiple policy discounts. When the same company insures your home and car, you can probably reduce your overall insurance costs by 10 to 15 percent.
  • New home, new homeowner? The same criteria used to qualify your home for a specific mortgage is often the same that qualifies your policy for discounts.
  • Living in a gated community? Then you may be eligible for discounts. Be sure to ask about auto insurance discounts if your car is evenly 'protected' to boot.
  • Rooftop savings – Some insurance companies offer hail resistant roof discounts for Class 4 roofs – naturally these credits may vary with locale. Moreover, be sure to ask your insurer about potential discounts before putting a new roof on your house – you'll probably want to capture savings if available and a flat roof without roof warranty may disqualify you from your current coverage alike.
  • Be a new policyholder – You may find additional savings extended to new customers based on new rating models that offer a 'sign up' discount. If your insurer extends this discount, your insurance agent may be able to capture it by applying for a new policy with the same company.
  • Your track record counts – make sure you discover discounts for home insurance customers who have a claim-free track record … when was the last time you filed a home insurance claim? A 10-year history typically qualifies you for this discount; If you've never filed a claim, you may save as much as 20 percent.
  • Risk reductions – Ask your agent to identify risk reduction discounts addressing a range of interior and exterior factors: fire and smoke alarms, electrical wiring, fireplace / chimney safety, heating apparatus, burglar alarms, curb and gutter system and landscaping elements. Proximity to a fire hydrant and your community's fire department also applies.
  • Preventive maintenance and home security – Make sure your insurance agent is aware of any alarm systems or preventive measures you take to secure property and to keep your home safe. Although discount criteria varies, you may be able to get savings of 10 to 15 percent for a combined system that may include two or more measures: deadbolt locks, lockable garages and storage buildings, fire alarms, fire sprinklers, fire extinguishers, a burglar Alarm or home security system.
  • Good breeding gone bad – Like it or not, some pets have a reputation. You may adore your family pet but if Fido is a dog breed considered bite-happy or dangerous, your insurance rating may be affected or your coverage in jeopardy. Choose your pet wisely – be aware of the little issues that can turn your insurance into a big issue.
  • Score card – Expect your credit score to impact your home insurances rates. If married, you may be able to reduce your rate by listing the top scorer as the first named on the insurer's application. Plus, if you've had a less-than-score score and recently improved your numbers, let your insurance agent know. You may be able to get a policy adjustment: a lower insurance rate is still possible without the need to write a new policy.
  • Raise the limit – consider the difference a deductible makes. You can probably lower your rate by raising your deductible – $ 2,500 is the standard deductible and you can expect a lower rate if you raise it to $ 5,000.
  • Agent vs. Agent and the extended marketplace – Is your insurance agent an independent who can tap a broad product range? Or an agent affiliated with a name-brand company? Know the difference. Independent agents can shop around – explore options across the marketplace. Brand agents do not usually have the same agility – they're usually limited to the company practice or limited to brand products. Loyalty counts. Still, if you're committed to one company brand you may be just as limited as the insurance agent who is equally missing rate rates, discounts and savings offered by the brand's competition.
  • 'Home pride' and stewardship are vital – Even many insurance agents do not understand the role that stewardship plays in harnessing the broadest range of discounts possible. Why? The better care you take of your home, the more attractive you'll look to insurance carriers. And the best way to harness discounts is to identify as many discounts as possible – it stands to reason that more companies mean more potential for discounts.

So, you'll want to make sure your home qualifies for coverage from every company that offers coverage in your locale since increased competition generally decreases rates and opens your access to discounts.

In a nutshell, homeowners applying the discounts above will soon realize the many ways they can save on their home insurance – even when times are tough.

Get started on discounts for savings ….

  • Shop around to compare insurance company providers and rates – what companies provide home insurance in your community?
  • Get guidance on the details – an independent insurance agent is not tied to one brand, so these agents can help you see the whole marketplace and get the apples-to-apples lens you need to compare products, coverage and rates.
  • Identify discounts – make sure you identify the common discounts most homeowners hit, along with other discounts that frequently miss.
  • Do the 'homework' – the work at home that demonstrates stewardship makes you eligible to select from the broadest insurance product range possible.
  • Optimize selection, and then maximize discounts to benefit from reduced raters and savings.
Posted in general | Tagged , , | Comments Off on Homeowners Guide to Home Insurance Discounts, Reduced Rates and Savings

The Importance of a Balance Sheet

An individual has two primary tools for managing personal finances. The Personal Balance Sheet is ignored and the Budget is the darling of Financial Consultants and the media. The key to understanding personal finances is that you have to understand your Budget and Balance Sheet individually and also how they work in combination to give you a complete snapshot of your personal finances.

Your balance sheet is extremely important because it shows you where the gold is. It is your personal Fort Knox. It is also extremely important because you need to have a stash of gold in your personal financial picture. The gold in your Balance Sheet is not the Assets. They are the positive side of your Balance Sheet but the real picture of how much gold you have in your Fort Knox is your Net Worth. So just as important to your Balance sheet is your Liabilities. The total of your Liabilities is subtracted from the total of your Assets to give you your Net Worth.

You fill out your Balance Sheet and total up your Assets and Liabilities. You subtract the total of your Liabilities from your Assets. That number, your Net Worth will come out to either a negative amount, an amount of or near zero, or it will be substantially positive. These are the only 3 scenarios possible.

• If your net worth is a minus number, you are not managing your financial resources properly. Your Balance sheet is your report card and you are failing. It is that simple. If you are managing your money to deal with life's challenges and planning your personal finances with your retirement in mind, your Net Worth should be positive and growing. If your net Worth is positive, you can ride out financial storms like the current situation. At the time of your retirement, your Net Worth must be substantially positive so that you will be able to keep costs down and have investment income to replace your working income. During your working years, your Net Worth should be growing steadily because a retirement nest egg does not grow without years of nurturing.

• There are circumstances where where it is acceptable to have a Net Worth of Zero or near Zero. The first is when you are just starting out. It just makes sense that it would be zero. You may have student loans but that is offset by some form of education that will allow you to make more money in the course of your lifetime. The key is that this is the best time to start building your net worth. It allows the principal of compounding value to work its magic on your assets for decades. That saves you a lot of work later in life. However, most of us are not that wise and we find ourselves in our 30s and 40s with little or no Net Worth. This means you have less time for compounding to work. So you have to work harder and especially manage your money smarter to prepare for the financial challenges you face going forward. The nice thing is that you have probably made some mistakes that have made you much wiser. You should be able to recover much faster than you would have in your undisciplined youth.

• If you have a positive net worth that means that you are building assets. Just as important is that you are controlling your debt. This is the key that has probably gotten you to this situation. The key to a positive Balance Sheet is that debt offsets the value of your assets when you look at your personal finances as a complete picture so your debt / equity ratio should be less than one and get smaller and smaller. Debt servicing saps cash flow on your budget that could have been used to build assets that can be used to produce income in your retirement years. Clear title ownership of assets such as your home reduce cash draw and this is incredibly important as you approach retirement.

The financial crisis we are in now is described as a Balance Sheet crisis. We are in this crisis because nobody was paying attention to their Balance Sheets, not even at the rising heights of our financial infrastructure. The symptoms were everywhere. While researching I found that the top sites on the internet for Balance Sheet are those who want to sell you something so that they can gain access to any assets on your balance sheet that might be left after this disaster. Before the disaster, the only thing that had any importance was whether a potential buyer of anything could afford to make the payments on whatever he was buying assuming he made 120% of his declared income. The most outrageous symptom was that people would take appreciating home equity and borrow against it to buy depreciating assets and consumer goods. They overbooked their budgets and now they have gutted their balance sheet.

The resulting loss of home values ​​is the disaster we have now where people have either a zero or minus Net Worth. The other aspect is that we are now wiser. For the good of our society and our financial infrastructure we had better be. Going forward we must pay attention to our Balance Sheets and recognize that is where the gold is. You must save and protect your gold. Net Worth is where financial power is and that is the Importance of a Balance Sheet.

Posted in general | Tagged , , | Comments Off on The Importance of a Balance Sheet

The 10 Most Common Mistakes Insurance Agents Make

Problem #1

Prospects have more sales resistance training than agents usually have in sales presentation skill.

Prospect response to insurance agents is designed to get as much information as possible and be in control of the situation. Prospects often mislead insurance agents about their intentions, how much they’ll spend, who makes decisions, etc.

The prospect intent is designed to turn agents into unpaid consultants, lead them on until they have all of the information they need, and often use their quotes to compare with their current agent or a competitor.

When prospects have what they need, they stop returning the agent’s phone calls.

Does this make prospects bad people?

Of course not.

We all use this system for dealing with salespeople…it’s almost second nature.

Why do prospects do this?

It’s simple.

It works.

The stereotype of an agent is not a good image for most of us, and prospects are afraid of being sold something they don’t want. In order to protect themselves, prospects feel they need a way to deal with agents. It is an instinctive reaction to the negative stereotype of agents that causes prospects to put up a defensive wall.

So how do most agents deal with the prospects system of defense? Most play right into it. Many don’t use a systematic approach to selling. They allow the prospect to take total control of the sales process. The agent eagerly:

o gives their knowledge

o makes commitments without getting any in return

o wastes resources on pursuing deals that will never close

o gives quotes to non-prospects who never buy

o misinterpret the ubiquitous “I’ll think it over and get back to you” as a future sale

How do most sales organizations contribute to the problem? Frequently they focus on product knowledge and overlook teaching what circumstances or concepts products fit best with.

The solution: Train agents on a systematic approach to making presentations so they have “a track to run on.” The training should balance both the prospect and agent’s best interest.

Problem #2

Spending too much time with prospects that will never buy.

A manager recently evaluated two of his agents like this: “Gary spends too much time with non-buyers, and gets too involved in non-productive activities. One root cause of this behavior is that he doesn’t ask the tough questions. Amy is strong with prospects, but both she and Gary have lost deals because the competition asks for the business while they give quotes to the prospect.” Why is this true?

Agents don’t ask the hard questions up-front for fear of making their prospects angry, they are afraid they will lose something they don’t have. Most agents think their job is to close everybody.

Over the years sales training has emphasized, “Don’t take NO for an answer.” Insurance agents are taught to be persistent…handle stalls and objections…trial closes…always be closing…and yes, even be manipulative. No wonder prospects need sales resistance to shield themselves!

Prospects realize agents don’t want to hear “NO” and that when they do, they’ll “hang in there” and try to turn “NO” into “YES.” When the poor prospect really means “NO,” s/he has found the easiest way to get rid of a agent is to tell them, “I’ll think it over, and I’ll get back to you.” How many “think it over’s” really turn into business?

The solution: Agents need tools to separate tire-kickers from buyers. They need an approach that obtains support early in the sales cycle. They need to learn the fine art of tactfully qualifying prospects in, not qualifying them out. The top agents learn to ask the hard questions up-front, saving precious resources for real opportunities. “NO” is an acceptable response from a buyer. “Going for the NO” requires a tremendous paradigm shift for most agents, but it can take all the pressure off the agent and increase productivity. This approach allows prospects to feel in control, this then relaxes them, and lets them buy instead of feeling like they are being “sold.”

Problem #3

Agents talk too much.

A manager recently said, “My agents’ listening skills aren’t where they need to be; someone says something and they don’t find out the real reason or intent behind the question, which leaves the prospect feeling like my agents don’t understand them or their issues.

Of course, when we sent them to the College of Product Knowledge, filling them with technical knowledge and then sent them out to make their quotas, we should have expected this result.”

So what’s the problem telling our story? First, people buy for their reason, not the agents reasons, not even their company’s reasons. Second, most companies’ presentations sound the same to the prospect, and when they sound the same, the agent just becomes another agent to the prospect, and then to the prospect, low price becomes the determining factor in getting the business.

The solution: Asking questions is the answer. Teach insurance agents to stop regurgitating to the prospect and start asking questions. Prospects should do at least 70% of the talking on the sales call. The only way this will happen is for the sales rep to ask a lot of questions.

Questions gather information. Ask questions to find out what the prospect’s “pain” is. This is the same thing your family doctor does during an office visit. They ask – they don’t tell you anything until they have made the proper diagnosis.

Problem #4

Weak Agents focus on price.

Price is never the real issue! Agents focus on price because it’s often the first thing the prospect asks about. Yet study after study confirms that quality and services are almost always more important than price. Price is never the main reason for getting and keeping business. People buy our products to either solve a problem they have, or improve something about their current situation or protect against future occurrences.

The solution: Teach agents to be more effective in asking questions and getting to real issues. Once they learn to do this, price will not be the determining factor in making sales.

Problem #5

Product knowledge is over-emphasized and misused. As a result, selling often becomes nothing more than “pitching and presenting.”

Most sales training focuses on product knowledge. studies show that 80% of training dollars spent annually are spent on product knowledge training. Agents, once filled with this product knowledge, are eager to share this information and become a Professional, Unpaid Educator. The focus then becomes totally on product, and not on the prospects problem, which is where it belongs.

The solution: Provide training in the strategy and tactics our agents need to help prospects clearly define their problems and co-build solutions that fit their needs. Product knowledge is important, but how it’s used at each phase of the buying process is the key.

Problem #6

Agents fail to get prospects to reveal budgets up-front. Many insurance agents are uncomfortable talking about money. Discussing money is seen as intrusive, and unpleasant. Many agents avoid talking about money, until the prospect forces the issue. This is one of the five most common weaknesses that agents have.

The solution: Knowing whether there is money upfront will help the insurance agent distinguish between a prospects who is ready to solve a problem from one who is not committed. Comfortably talking about money is a key to management, where resources are evaluated based on bottom line impact. Teach your agents to find out two things about money:

o How much the problem is costing the prospect; in other words the amount at risk.

o How much they’d be willing to invest to solve the problem.

Without a candid discussion about money, the agent is left to make certain assumptions. And we all know what happens when we make assumptions!

Problem #7

Agents fail to get firm commitments from prospects.

Insurance agents are often very willing to jump at the opportunity to do a quote, presentation, etc. This approach is incredibly time-consuming and resource intensive.

How many quotes has your team/distribution sent out over the last twelve months that resulted in nothing? How much does it cost your team/distribution on an annual basis to do quotes that go nowhere?

The solution: Agents must learn what motivates people to buy. They must master the skills required to help prospects become comfortable sharing problems, and they must learn to determine the prospects’ level of commitment to solve these problems before they begin to offer their solutions.

Problem #8

Lack of sufficient prospecting.

A quote from a manager: “They don’t do enough prospecting, even ‘when I use a long stick.'” All professional agents will eventually be faced with a bout of call reluctance. You know the story – they have so much paperwork on their desk they can’t possibly find the time to prospect for new business OR they’re so busy calling on existing customers (who incidentally aren’t buying anything) there’s no way they could add any new appointments. Getting ready to get ready. The BT club (bout to) Sound familiar?

o Over 40% of all veteran sales professionals have experienced bouts of call reluctance severe enough to threaten their career in sales

o And 80% of all new agents who fail within their first year do so because of insufficient prospecting activity.

The Solution: Insurance agents need to develop a realistic activity plan. Monitor the plan weekly and implement effective accountability.

Problem #9

The insurance agent has a strong need for approval.

It’s an easy and common mistake. “I love people, so I’ll be an insurance agent.” You end up with an insurance agent that would rather make “friends” with their prospects than conduct business. While developing relationships are an important part of the selling process, selling is not a place for people to get their emotional needs met. In fact, it’s the opposite: a tough and demanding profession, full of rejection. People who internalize the rejection end up getting out of the profession. Truth is, they should never have gotten in the business. Sales interactions are fundamentally different than social interactions. Successful professionals understand and accept that the bottom line of professionally selling is: MAKING MONEY.

The Solution: Evaluate yourself to determine if you have this need for approval. Managers need to ask pre-hire screening questions that helps to hire stronger people and teach them a system that helps strike the appropriate balance between developing relationships and getting commitments.

Problem #10

Insurance agents don’t treat sales as a profession.

Professionals like doctors, lawyers, engineers, teachers, and CPAs’ all have one thing in common – they attend continuing education to maintain and increase their proficiency. Yet how many insurance agents are continually seeking new ways to increase their skills? Many have the attitude, “I’ve been selling for years, what more can I learn?”

The solution: Top performers in every profession are always looking for ways to sharpen their skills and gain the fine edge that leads to consistent success. Managers need to invest in top performers and help them grow their skills. Ego stunts your growth so managers have to be willing to set their ego aside and be willing to grow, modeling behavior that demonstrates it is more important to the manager to be effective than to be right. We can all learn from each other.

In Summary:

Hiring: Distributions, supervisors and managers must complete, step-by-step, a formal process for profiling, attracting, recruiting, interviewing and hiring top performers. Look to hire goal achievers not goal setters. Most managers hire goal setters and are surprised when agents never achieve their goals. The truth is the agent only had a wish list. Ask the agent when interviewing or coaching to describe goals they set and “how” they achieved the goal. If they didn’t achieve then it was it a goal or only a wish list?

Effective recruiting and hiring is the most important job of any manager. No amount of training, coaching or mentoring will make up for a poor hiring decision. Do it right the first time.

Managing: Implement a sales management process that emphasizes more effective recruiting, hiring, coaching, growing, and developing agents. Most of all quit accepting excuses for poor performance from yourself and your agent, raise your expectations and implement a rigorous accountability process. This starts with your team production-if you are not meeting standards. how can you expect to hold your agents accountable?. In management, you don’t get what you want – you only get what you expect and inspect. Remember, you manage things – you lead people.

Training: Tapes, books and one -day seminars are fine for intellectual learning or external motivation, but if you want to be a better golfer, pianist – or a better sales person, you must practice and develop new skills. Selling is a skill that can be taught, learned, and mastered over time.

Phone scripts and rebuttals are intended to assist in moving your management and sales career forward or allowing you to increase you current volume of business.

Remember these are only meant to be sales tools, they do not work, you have to work them.

The key is to do enough of the right things, enough of the time.

Give success time to happen-and do something today to make it happen!

The clock starts NOW!

Posted in general | Tagged , , | Comments Off on The 10 Most Common Mistakes Insurance Agents Make

Real Estate Agents – Strengths and Weaknesses in Listing Commercial Property Today

In this commercial property market there are some real pressures and challenges that confront a lot of property owners when they want to sell or lease their property. They need the help of top agents that really understand the local area, to help in moving the property.

Contrary to popular belief, it is in markets like this that good agents can make a lot of commission. It all comes down to the way in which they package their services and help their clients.

In simple terms, top agents and experienced agents can do very well today providing them work the local area and their database. A good database will always get you through any market conditions and frustrations. In saying, that I am a big believer that a salesperson's database should not be delegated to the office administrative staff to control.

Every salesperson should take ownership of their database; In this way they will get good activities from it. In this market you need leads that you can do something with. When a database is passed over to the administrative staff to control, the inevitable result is inaccurate and old data. The database soon becomes redundant. The salesperson does not keep it up to date.

Become Change Agents

So we are the 'agents of change' when it comes to helping our property clients an owners get results in this market. We should know how to attract the right people to every property listing that we take on. Exclusive listings are more important in today than ever before. Some top agents will not take on 'open listings' for the very reason that they are a waste of time and effort.

When you know the drawbacks of the industry and the listings today, you can offer the clients that you serve some solid solutions. So what are the drawbacks? Here is a list of some of the larger ones:

  1. The time that it takes to sell or lease a property can be longer today. Every client has to be conditioned for the best price or rent so the time on market is not lengthened. The first few weeks of every marketing effort are the most important. Position the property correctly to get the best inquiry in this time.
  2. High prices and high rents will achieve nothing. The price or rent for the property should be optimized for inquiry. You have to do more with less when it comes to marketing and inspecting of properties.
  3. A larger number of competitive properties can frustrate your marketing efforts and time on market. Check out these properties before you do anything with your listing.
  4. Buyers and tenants are slower to inquire, inspect the property, and then make a decision. Your skills with each stage of the listing should be optimized. Hone your skills accordingly.
  5. Limited finance can put some 'brakes' on the larger deals. Find out where your prospects can get finance from and what the criteria of approval may be.

Whilst these may be drawbacks in the market, they are also opportunities for agents that can get focused and organized. Every problem is an opportunity in disguise.

Are you a solution provider in this commercial real estate market? Top agents are just that. You can be too.

Posted in general | Tagged , , | Comments Off on Real Estate Agents – Strengths and Weaknesses in Listing Commercial Property Today