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4What do those letters mean after your
name??
The letters after a REALTORS® name represent designations (additional education) that the agent has completed. Licensed agents in Texas are required to complete regular education in order to renew their license – the amount depends on when they were licensed and what the current requirement was at that time. There are a lot of courses we can take – some are required (like the legal and ethics updates) and some are elective. Some courses, or sets of courses, specialize in specific areas of real estate. These courses may or may not meet the Texas Real Estate Commission requirements for education. ALL (well, ok, MOST) courses provide some bits of knowledge that are beneficial to both the agent and their clients. My designations represent the Graduate, REALTOR® Institute (GRI) program and the Council of Sellers Representative Specialists (SRS). I am actively working toward one of the bigger designations – the Council of Residential Specialists (CRS), and will complete the Accredited Buyers Representative (ABR) designation in March, 2008. Each one of the courses has been carefully chosen to enhance the skills and knowledge that can be used to benefit my clients. Additionally, participation in these courses helps me meet other agents in town (and across the state) that can serve as a resource when needed. You can look at the educational record of an agent or broker in Texas by going to the TREC website at www.trec.state.tx.us. The Texas Real Estate Licensing Act allows licensees to work both sides of a real estate transaction – it’s legal. Some things that are legal aren’t necessarily the best thing for all people. When a seller signs a listing agreement with an agent, they are signing a contract with the understanding that the agent (and agency) they have signed with are working in their best interests. As a buyer, you need to know that someone is working in YOUR best interests as well. While it is legal for an agent to work both sides of a transaction, it is very difficult (arguably, impossible) for them to work in the best interests of both the buyers and the seller. Remember that sellers pay agent fees – most of the time the money you may think you can “save” by buying from the listing agent is more than made up for in the service and protection you are giving up by working with the agent that is representing the other persons best interests. All agents are required to present a form called “Information about Brokerage Services” during the first substantive meeting with a consumer. This form explains what Seller Representation, Buyer Representation and Intermediary status are and how the come in to play during a transaction. At Parrish & Associates, we REPRESENT one side, and only one side, of a transaction. There are no exceptions to this policy. If we have a consumer who wants to purchase a property that we have listed (remember, we only represent the seller), we refer them to an outside agent. Yes – this means we do not get to collect both sides of a commission –it also means that there is never any question concerning who we represent. A Real Estate Consultant is a REALTOR®….plus lots of service! As a Real Estate Consultant, I take a consultant role (rather than a salesperson role) with my clients – asking deep, thought provoking questions so that I have a complete understanding of the wants, needs and desires of my client. With this information, I teach people to create long term financial wealth and security for themselves and their family. Because for most people, the sale or purchase of their home is the single largest financial transaction they will have, I believe that my greatest asset as a Real Estate Consultant is my tremendous passion to provide my clients with the information, the tools, and the sound advice to ensure that they make great real estate decisions. By Referral Only means that I am totally committed to providing to my clients a world-class level of real estate service that is above and beyond expectation. In turn, I offer the same commitment to your friends, family and coworkers who you are willing to refer to me whenever possible. By choosing to work by referral, instead of spending the majority of my time constantly looking for business from the general public, I can focus on giving you the special level of care and consideration that you deserve. It's a great way to do business...and you'll appreciate the difference! There are lots of questions that you may want to consider as you are interviewing agents – here’s a list to get you started:
How long have you been licensed? Nothing can replace experience – only through working transactions and representing clients can an agent gain a full understanding of how the process works and how to align things in the best interest of the client. Most agents who are newly licensed have not had time or opportunity to gain the skills and knowledge that come through experience.
How many transactions have you completed? Compare this with how long someone has been licensed. If they have been licensed for five years and have only done 5 transactions there is probably something seriously wrong!
Do you do this full time? There are a ton of part-time agents. Do you want someone helping you with your biggest purchase or sale that only does this when they’re not working someplace else?
Do you represent both sides of a transaction? See my note about client representation and working both sides of a transaction. It is ALWAYS in your best interest to be fully represented by your own agent.
How many of your clients refer people to you? If past clients aren’t referring people to an agent – they were not fully satisfied with the service that was provided. Look for someone who gets consistent referral business as it is a sure sign that they are taking good care of people.
What do you think of the education requirements for REALTORS®? If an agent is fed up that they are required to spend about 30 hours per YEAR on education for their profession – you may want to give some serious consideration to their desire to really be successful and proficient.
Will you cut your commission? This is another fun one – see how they react. If they say yes without hesitation –do you think they will be a tough negotiator on your behalf? A quick yes may also show that an agent is desperate for business – again, do you want someone working for you out of desperation? Some agents offer “move up” programs as an incentive for clients who sell and purchase with them, and others who work with investor clients often provide a discount because of the regular business this type of client provides – both of these are good things.
Can I meet your broker? I actually had another agent’s client ask me this. He wanted to know if he worked with me, if he could talk to my broker. I said sure – when would you like to do it? He was so in awe that I didn’t get defensive (and that my broker was available to me) that he signed with me the day after his agreement with his old agent expired. And by the way, we invited him to the office for fresh baked cookies and a nice hot cup of coffee so he could be certain that he really could meet with my broker at any time.
What will you do for me after the sale? When you work with me I take care of you from ‘before the beginning” until “way after the end”…remember I’m your “personal real estate consultant for LIFE.” That means you get reminders about tax obligations, information and referrals for contractors and other service providers, reminders about important real estate news in your area, free notary services, low cost copy services and an assortment of other handy things all in one place.
What do you do if there are special agent bonuses or incentives? This is one of my favorites! I can’t answer for other agents – but I can tell you what I do. Whenever there is a special incentive or bonus (these are often offered by builders, and sometimes by sellers) I let you know what the bonus or incentive is, what it means to you, and ask you how you want for it to be handled. Many agents look at me cross eyed when I explain how I handle this!
How do I know your price opinion is accurate? Many times agents will provide a Broker Price Opinion (BPO) that is actually a Comparative Market Analysis (CMA) that was produced with a few clicks of their mouse through the MLS. A BPO is a two page highly detailed report. Ask to see a report for one of their listings (it’s ok if the address is blacked out) and to see the MLS SOLD printout. Compare the sales price on the MLS printout with their original opinion. Is it close? Remember that I do between 6 and 12 BPO’s each month for our corporate clients – a detailed, accurate report. In nearly every case, the property has sold for the price forecasted on the original report. Be careful with this one – remember that there are legitimate factors that can really cause problems for listings – most recently, the sub-prime mortgage mess and the resulting sales slowdown.
What can I expect from you as my agent? With me you get a custom marketing strategy, a detailed broker price opinion, phone calls returned on a specific schedule, and a Real Estate Consultant who truly works with your best interests in mind.
It is never too early to start the process. It is important to know what is going on with your credit and your ability to borrow money. While the actual transaction can take as little as 15 days (believe me, ALL the stars have to align for that to happen), items that need to be taken care of in relation to your ability to borrow money can take a long time. If you have just signed a lease and think you might want to buy next year – let’s get the financing part started now. (I am a Real Estate Consultant – not a mortgage broker. I will always refer you to my Strategic Alliance lender Amy Krause (she’s actually a Mortgage Consultant – you know it makes a difference!) and encourage you to comparison shop with at least one other lender. Remember that service plays a huge role in financing – saving ¼ of 1% on a rate can often cost you a ton more than you’ll save. Once we have a green light from the lender of your choice, we can begin to develop a strategy for the actual transaction. When we meet for our Initial Consultation, we will discuss in detail the options and put together a game plan specific to you. Check out the “about me” section on my website. I am a firm believer that when you give, you get. I align with this philosophy by contributing to the profession as a whole. Participating in committees allows me to meet other professionals in the area, become aware of changes and important factors in our profession before most other agents, and most importantly, LEARN. Sometimes. In the words of one of my students – “sometimes yes, sometimes no, who’s really to say?” Real Estate can be an extremely rewarding profession…it is also extremely risky. There are a lot of factors that come in to play from a financial perspective. As a Real Estate Consultant, bills are always consistent. Income isn’t always consistent. Aside from the regular living expenses that everyone has, there are health insurance premiums, board dues, MLS dues, professional insurance premiums, marketing expenses, education expenses, office expenses and assistant expenses. When my clients experience world class service, their opinion of “those big commissions” changes dramatically. This is another great reason to be sure you’re working with a qualified Real Estate Consultant. Would you build your own house? While you probably CAN do it, SHOULD you do it? Real Estate is nearly always a person’s largest sale – and most people have never actually sold a home before, so they have no idea what the process actually is. A licensed real estate agent, and more importantly a qualified Real Estate Consultant, can guide you through the process of selling a home so that you are well advised and represented. There are literally dozens of options on a real estate contract, and dozens of forms created for very specific circumstances – that help protect you as a seller. One other thing to consider – approximately 98% of homes (according to National Association of REALTORS® statistics) sells because of the exposure they receive on the Multiple Listing Service (MLS). Only a licensed REALTOR can put your home on this service. Well, in a nutshell – you get what you pay for. Yes, you can sell your home this way. Should you? Only you can answer that. I would never recommend to a friend or loved one that they do this. Real Estate transactions are simply too important to go it alone – and most of the time you go it alone when you sign up for this type of “service.” Check out my note on working both sides of a transaction. Remember that if I have a bank owned property listed, I am representing the bank. When I represent a bank, my job is to help them minimize their losses, and to help them sell their property at the best price with the best terms possible in the current market. By doing this for the seller (in this case the bank), it impossible for me to do it for you. That said, I can help you identify properties that are a good value that other agents may have listed – sometimes owned by a bank, sometimes owned by an individual (who may even be close to foreclosure). One other thing to remember about banks. They don’t have hearts (see the ONE exception below). Now that doesn’t mean they are evil – it simply means that they just don’t care what your (or my) circumstances are, why this house is important to you, or what your circumstances could be. What they care about is minimizing their loss and providing the best possible profits for their investors. The exception. Fannie Mae will not evict a family from their home during the month of December. Each of these programs has a slightly different set up. But the main nuts and bolts are usually the same.
Every single process that has been set up to protect you as a consumer is waived when you agree to these three criteria. Often a builder will offer “free upgrades” and sometimes other things that seem to make an offer too much to pass up. Remember – nothing in life is free! You will be paying for your “free upgrades” and other incentives for the entire time you are paying for your house. Let me tell you a story. This year I had a client find a new home that he wanted to purchase. He went in and talked to the onsite sales people that were happy to help him. He filled out an info card that clearly listed his contact information and my contact information as his agent. One of the sales reps “filed” the card. He was given the price of the house, and was allowed to check it out for himself. He was told that the house had already been sold once – but with the sub-prime lending mess the buyers were not able to close. (That fact is important later). He was happy with the price of the house, and knew that when he moved in he’d do some work to it to make it his own. He called me up and told me the circumstances, and I said GREAT – let’s meet out there and check the place out. That’s when we discovered the info card had been “filed” and that the builders reps were not at all happy that I had shown up that day. We checked out the house, and it seemed to meet his needs in almost every way. The price was right. The location was good, and hey, it was BRAND NEW! I encouraged him to have an independent inspection, and to remember what I had told him about “builder incentives” during our Initial Consultation. Trusting me, he called Paul the inspector and scheduled his independent inspection. We were surprised at the report. Remember this is a BRAND NEW HOUSE that has never been lived in, and had already been sold once but couldn’t close due to a financial issue with the other buyer. The roof of the house had started to fail - the decking material had been exposed to moisture and had started to warp, and several damaged shingles had been installed. Remember someone else had already been set to close on this house. When we went back to the builder with the inspection report, the builder was forced to rebuild the roof. Had my client not followed the advice he was given ( or participated in one of these “incentive programs” ) he would have ended up with a big problem. Even if the builder would have repaired the roof down the road – they would not have paid for the water damage to the structure or my client’s belongings, nor the time lost at work, nor the aggravation for such a mess. And remember when you have a water claim on your property the homeowners insurance premium goes up at the next renewal. This small bit of advice saved my client thousands of dollars and a ton of mess. So…the moral of the story is – make sure you are represented! These builder programs make sure you are NOT represented! By the way, this client has referred two friends and one loved one to me as a result. |