What is a Realtor® and why do you need one?

Published 19 August 07 01:02 PM

What is a Realtor® and why do you need one?

One of the first things you should do when you decide to buy or sell your home is select a Realtor®.  The selection of a good Realtor® will make all the difference in the world when it comes to a smooth transaction. Let’s start with WHY you need a Realtor®.  You don’t need a Realtor® by law to buy or sell real estate in Florida. Anyone that owns or will participate in the transaction can buy or sell real estate on their behalf. 

However, only an active licensed real estate sales associate or active licensed real estate Broker can perform one of the eight (8) real estate functions. They are easily remembered using this acronym A BAR SALE:

Advertise real estate services

Buy

Appraise

Rent or provide rental information or lists

Sell

Auction

Lease

Exchange

 

Beware: Buyers * Sellers * Agents

Before you negotiate a deal, be sure your agent has a valid and current active Florida real estate license. Unlicensed practice as a real estate broker or sales associate is a FELONY in the state of Florida.  To verify a license is current and active, go to www.MyFloridaLicense.com or call 850.487.1395.

 

Report Unlicensed Real Estate Activity Toll-Free at 1.866.532.1440

A licensed sales associate or licensed broker does not have to be a Realtor®.  A Realtor® refers to a person that belongs to the National Association of Realtors (http://www.realtor.org/). Realtors® usually belong to their state and local organizations as well. Typically, when a Realtor® joins a local association they also get access to the Multiple Listing Service (MLS). This is a real estate market place in which the members agree to cooperate with each other to help their clients buy or sell real estate and they offer compensation to each other for that service.

Why do you need a REALTOR®?

For the same reasons you use and acquire the services of any professional - to help you find, process and finish what is a big investment on your part.

The most obvious reason is that a REALTOR® has more experience doing real estate transactions than the average buyer or seller.  Think about it…how many homes have you purchased? How many have you sold?  A REALTOR® that has been in the business for a couple of years and has done an average of 10 closings a year (this is not even a good realtor) has done 20-30 closings.  The average buyer or seller maybe has done 3-5. A first time buyer absolutely needs a REALTOR® to help them out. I’ve heard many horror stories about First-time buyers buying real estate from FSBOs (For Sale By Owners). Even worse, imagine a First-time Buyer buying from a First-time by Owner Seller. Who in this transaction knows what they are doing? No one. Don’t you think that a professional, someone who is licensed and regulated by the state, has underdone specific training in this area and who derives their financial livelihood by helping others buy or sell their real estate just might be in a better position to guide you through this process than going it alone? Absolutely.  

NEXT WEEK  -- I will be talking about HOW CAN YOU SELECT A REALTOR®

 

by 85 & Sunny Real Estate

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# JR Fuller said on September 6, 2007 7:35 PM:

How can you select a Realtor®?

Simple rules:

Realtor® rule.

Referrals

Education/Experience

Gut

Realtors® Rule – Get a Realtor® not just a licensee. Realtors® who join the National Association of Realtors don’t just pay their dues, they also sign up for a voluntary Code of Ethics and Standards of Practice.  This Code governs the way Realtors® relate to clients/customers as well as each other. Many times the Code establishes obligations that are “higher” than the law requires. There is an enforcement of this code and anyone that does not adhere to it can be removed from the NAR, state and local associations. To view the current copy of the Code visit:

http://www.realtor.org/mempolweb.nsf/pages/printable2007Code

Realtors® also have access to the MLS and www.realtor.com (the most visited site for real estate searches). Realtors® also have access to a large set of training that is only available to Realtors® (see below).  

Referrals – most Realtors® live off referrals and they understand this and will go out of their way to make sure they provide outstanding service to their clients.  That said, any Realtor® can do one (1) transaction successfully.

When you ask your family and friends for a referral to a Realtor® ask them about their experience with the Realtor®. Did the Realtor® listen to their requirements? Was the Realtor® available when they were? How did they learn about their Realtor®? What did they like most about their Realtor®?  What didn’t they like about them? If they need to buy or sell another piece of real estate right now would they use the same Realtor®?  

Just as important as who would they refer is who do they recommend that you stay away from.   If you want to quickly find out who the best of the best are, ask a Realtor® who they would refer to sell their house if they left the business and had to sell today.

Education / Experience – Full-time vs. Part-time and Long-timers vs. Newbies. Which to pick. Each have their pros and cons. I’ve met some Part-time Realtors® that are outstanding and as long as they are available for the time that I need them and I know that they are working for me, I wouldn’t have a problem using them. They must have a good support system (like any Realtor®) and don’t be afraid to ask them about their status and how they plan on servicing you effectively. Ask to meet their Broker and make sure that you have their commitment to your satisfaction as well.  No top agent works alone. NO ONE.  Ask to meet the rest of the team. After all, this is one of the most important financial decisions you will probably ever make and you deserve to have your interests looked after.  Generally speaking, I would recommend you stick to full-time Realtors®.  But, it real does depend on the Realtor®.

One thing you can’t fake is education. Look for initials after people’s names. Generally, the more education the better. A Broker has a higher level of education than an Associate. The state tests are much harder and the course requirements are more extensive.  Some Broker manage, some sell, some do both.

A list of the designations that are available through NAR and its associates can be found at: http://www.realtor.org/runivers.nsf/pages/designation

I’ve put some of the more common one’s below:

ABR, Accredited Buyer Representative

With over 40,000 members, REBAC is the largest association of real estate professionals focusing on all aspects of buyer representation. Over 30,000 ABR® designees have completed the REBAC course, passed the test and provided documentation of buyer agency experience.

CCIM, Certified Commercial Investment Member®

CCIMs are recognized experts in commercial real estate brokerage, leasing, valuation and investment analysis. The CCIM business network includes more than 7,500 designees and an equal number of candidates principally in North America, but also in Asia and Europe. CCIMs are backed by a respected education program, as well as superior technology products and business resources.

CPM, CERTIFIED PROPERTY MANAGER®

Acquire valuable real estate management skills through educational offerings leading to the CPM® designation. CPM® members have the competitive edge in every area of real estate management from residential to commercial to industrial.

CRB, Certified Real Estate Brokerage Manager

The Certified Real Estate Brokerage Manager (CRB) designation is recognized industry-wide as the measure of success in brokerage and real estate business management. The designation is awarded by the Council of Real Estate Brokerage Managers to REALTORS® who have completed the Council's advanced educational and professional requirements. CRB designees consistently increase their level of industry knowledge, advance their earning and career potential, increase their firm’s profitability and benefit from active involvement in our network of real estate professionals. The new CRB Designation Program now provides credit for management experience, higher education and previously earned NAR designations. Additional credits can be earned through the Council's management education programs delivered live or by Self Study on CD-ROM.

CRS®, Certified Residential Specialist®

Agents can maximize their potential by earning the CRS® Designation and joining the organization that has served top-producing residential sales agents since 1977. The more than 35,000 CRS® Designees benefit from nationwide referral opportunities, a professional image that attracts customers, and sales and marketing support. The CRS® Designation is awarded to experienced REALTORS® who complete advanced training in listing and selling, and meet rigorous production requirements.

GRI Graduate REALTOR Institute

Members involved in residential real estate who want a solid base of information for their practice will want to participate in the REALTOR® Institute program and earn the GRI designation.

SRES®, Senior Real Estate Specialist

The SRES® Designation program trains REALTORS® to profitably and ethically serve the real estate needs of clients age 50+. It includes first year membership in SRES Council and its umbrella of services.

GUT

Don’t underestimate your “Gut” feelings. It’s important that you can find a REALTOR® you can relate to. After all, you will be sharing a lot of personal information about yourself and your finances with your REALTOR®. If you get a “bad feeling” or you are not quite “comfortable” with the REALTOR® you are meeting with…don’t sign anything, walk away, discuss your feelings with your support group (Spouse, Family, trusted partners) and work through what it is that is making you uncomfortable. If you realize it is the REALTOR®, ask them for a referral or go to the next REALTOR® on your list.

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