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DESIGNATIONS AND CERTIFICATIONS The Real Estate Industry has various Designations and Certifications that reflect extra education and/or additional experience in a particular area of the real estate industry. Unfortunately, the public has very little understanding of the various Designations/Certifications and their significance. We will do our best to explain some of them here-those that are of significance to residential sellers and buyers. If there is a designation that is not covered here and you, a member of the public, would like some additional explanation, please call us to discuss. We may even add it to this list!! Real Estate Agent vs. REALTOR® Before proceeding, you must understand the difference between a real estate agent and a REALTOR®, and the difference between an real estate agent/REALTOR® and a Broker. A real estate agent is someone who is licensed by the State within which the real estate agent is doing business. A REALTOR® on the other hand is a real estate agent who has joined the professional organization of the National Association of REALTORS® (N.A.R.). Both must "hang their license" with a Broker in order to do business. The agent who joins N.A.R. automatically joins his/her State REALTOR® organization and his/her local REALTOR® Association. (The word REALTORS® is a registered trademark of N.A.R.). A real estate agent is not required to join N.A.R. A real estate agent who joins N.A.R., agrees to subscribe to N.A.R.´s Code of Ethics. N.A.R. summarizes the Code as follows:
N.A.R., and the State and Local REALTOR® Associations, have a process in place whereby the public or other REALTORS® can lodge a complaint with the local Grievance Committee against an offending REALTOR® who has violated the code of ethics. The Code of Ethics covers items that may not be a violation of the State Real Estate Board rules and requirements, and may not be a violation of the law. REALTOR® Associations continuously offer education courses, newsletters that highlight the most recent changes in the law, or advances in technology that help the REALTORS® which, in turn, helps their clients. Needless to say, a Seller or Buyer should ONLY use a REALTOR® to assist him/her in the sale or purchase of a home. It shows a commitment to a higher level of professionalism and a commitment to advancing themselves. It also shows a commitment to a procedure holding REALTORS® to a higher level of ethical duties. Being a REALTOR® is the MINIMUM (but not the only) requirement a Buyer or Seller should use in determining who to hire as an agent. A Broker is someone who is qualified to open up his/her own real estate business and is not required to be associated with another. There are many "sole practitioners" who are Brokers who supervise only themselves. But having a Broker´s license authorizes one to also supervise other agents. One becomes eligible to apply for the exam to become a Broker either by having a College degree or by having worked for a Broker full time for two years. Once the person passes the Broker´s exam, they then have the capacity to have their own business and supervise other agents. Although most Brokers are REALTORS®, a Broker is not automatically a REALTOR®. An Associate Broker is someone who has passed the Broker´s exam and is qualified to have his/her own business but has chosen to associate themselves with another Broker (or Brokers) so as to not have the expenses involved in owning your own Brokerage supervising other agents. DESIGNATIONS Certified Residential Specialist (CRS): The Certified Residential Specialist (CRS) Designation is the professional Designation offered by the Council of Residential Specialists (The Council) which is affiliated with the N.A.R. To quote the CRS website: "The Certified Residential Specialist (CRS) is the highest Designation awarded to sales associates in the residential sales field". We agree. This designation has several intensive education courses that an agent must pass AND, in addition, has a requirement of a substantial volume of business that must have been achieved, either in the number of sales transactions that have closed escrow or a total dollar volume of closed transactions. Either way, the requirements are such that only agents with experience are able to obtain the certification. The Council advertises that only 3-4% of all REALTORS® in the nation are CRS designees. Since not all real estate agents are REALTORS®, the percentage is actually less than advertised when compared against all real estate agents. Whenever we refer a client to another REALTOR® out of the State or our area of business, we always make sure that, AT THE VERY LEAST, the agent is a CRS designee. Real Estate Collaborative Specialist-Divorce™ (RCS-D™) This is a very specialized designation started by a Harvard trained lawyer who is also licensed as an agent in Tennessee (and who is a REALTOR®). She is the author of a book titled: "Divorce This House". She recognized that terrible mistakes were being made in divorce situations where one of the spouses had decided to keep the house. She points out that mistakes are preventable early on in a divorce (called a dissolution in some states such as California) and not fixable after the Marital Settlement Agreement or its equivalent is made. Consequently, she decided that a team of experts needed to associate with each other (such as REALTORS®, lawyers, and financial advisors among others) to make sure that the parties protected themselves from major mistakes. She created the RCS-D™ designation for REALTORS® to educate them about how to better steer their clients in the right direction when contemplating the keeping or selling of their property. Nick and Barbara are the first designees in California and are the trainers for the course here in California. We absolutely believe that only a REALTOR® with this designation should be used to represent people who are obtaining a divorce and who own property, together or otherwise, residential or commercial. For further information, see www.DivorceThisHouse.com for a more thorough understanding of the designation and then contact us for any assistance you may need anywhere in California. Graduate REALTOR Institute (GRI) The GRI is offered by N.A.R. through the State Chapters and consists of a number of required education courses. Think of it as getting a two year community college degree which emphasizes a particular curriculum. It does NOT require ANY transactions. Consequently, you could obtain your real estate license and then begin to take the courses and complete the designation without having done one transaction. Does that mean it is not an important designation? No, it does not. We believe that any education an agent takes to advance their knowledge is a good one. There are quite a few courses that are required and so the information/education obtained is significant. However, because there are no transactions required, we do not think that, standing alone, this is a designation that should influence the choice of a REALTOR® but, rather, is one that can be used to differentiate REALTORS® between which you are having difficulty choosing after considering all the other designations and/or certifications that a REALTOR® has. Certified Luxury Homes Marketing Specialist (CLHMS) To quote the website: "The Institute offers the Certified Luxury Home Marketing Specialist (CLHMS) designation for member agents who complete our specialized CLHMS training and have documented performance in the top 10% of markets." Marketing a "luxury home" for Sellers (defined as the top 10% of homes in a particular real estate market), or representing Buyers in the purchase of a luxury home, requires an enhanced skill set that most agents do not have. This Designation assures a prospective client that the person with the Designation possesses those enhanced skills to be able to better represent their client. Barbara has the special additional distinction of belonging to the "Million Dollar" Club which means she has sold a number of homes for $1M or more. Accredited Buyer Representative (ABR®) An ABR® is a REALTOR® who has taken some classes regarding representing Buyers AND can show that they have at least 5 transactions where they have represented Buyers. It does not mean that the designee only represents Buyers. That is a personal choice of the particular REALTOR®. Any education that increases your knowledge as to a particular area is always a good thing. However, whether you should work with someone who ONLY works with Buyers is debatable and we have our own opinion about that. This page is not the arena to cover that topic. Both Barbara and Nick are qualified for the designation upon completion of one more core class required prior to obtaining the Designation. Unfortunately, the local class has been cancelled twice due to insufficient class size. We expect to complete the class by mid-2009. The ABR® is a designation affiliated with N.A.R. Seniors Real Estate Specialist® (SRES®) To quote the SRES® website: "The SRES® Designation program trains REALTORS® to profitably and ethically serve the real estate needs of clients age 50+." The needs of people who are 50+ years are, in many cases, unique and do require special knowledge and skills. Being aware of and knowing the needs of "senior citizens", so broadly defined by the SRES® designation, allows the agent to make the transaction so much easier for them. Mostly, in representing "seniors", we have found that we are representing them first as Seller clients and, occasionally, representing them either as Buyers or assisting them in finding Assisted Living facilities. If you or someone you know fits into the "senior" category (50+), you should definitely use someone who is a CRS® AND an SRES® designated REALTOR® as minimum agent requirements. The SRES® is a designation affiliated with N.A.R. Performance Management Network (PMN) To quote from the website: "PMN is a REALTOR® designation that´s built from the ground up to bring you the real-world skills, the know-how and the tools that will keep your business out front and on top of a lightning-fast market." PMN is affiliated with N.A.R. but obtained through the Women´s Council of REALTORS® (WCR). Leadership Training Graduate (LTG) This used to be offered by WCR. The LTG has been superseded by the PMN CERTIFICATIONS These are Certification courses as opposed to a Designation course. We aren´t sure how to exactly differentiate the classifications but suffice it to say that the Designation indicates an expertise in a particular real estate area or field while the Certification certifies that you are proficient at the particular subject. Some of the Certified classes will enhance your knowledge of a particular field that relates to real estate but others might just broaden your knowledge as to a particular area whether related to real estate or not. e-PRO® To quote from the website: "e-PRO® is a revolutionary training program presented entirely online to certify real estate agents and brokers as Internet Professionals." Unfortunately, there are still way too many REALTORS® who are not proficient with technology and thus inefficient in conducting business for themselves AND for, and with, their clients. Consequently, we think any training that indicates knowledge of and use of technology is necessary in deciding who to choose for a REALTOR®. This is one of those that is recognized by N.A.R. and is extremely good at letting agents know how to use the technology that is available to them. Frankly, it is a minimum requirement in our opinion. There are other ways of determining whether an agent is proficient with technology. This Certification is an easy way of making that determination. Because Barbara, who was "tech savvy" as a result of her working in the high tech industry, was tired of Nick always asking her questions, she asked him to take some sort of course. E-PRO was the result of that request. At Home with Diversity (AHWD) To quote the website: "AHWD certification relays to the public that those certified have been professionally trained in and are sensitive to a wide range of cultural issues inviting a wider volume of business from a greater variety of cultures." At the very least, this certification does indicate that a REALTOR®´s awareness of cultural needs and desires is more highly tuned than your average REALTOR®´s is. OTHER EDUCATIONAL ACHIEVEMENTS There are a number of classes that REALTORS® can take that add to their knowledge of the profession but do not rise to the level of a certification or designation and obviously not all can be included here. However there is one that is extremely valuable and results in a certificate of completion. That particular curriculum is the intensive Two Part, Four Day Course in Mediation and Negotiation offered by Pepperdine Law School Professors. A major part of a REALTOR®´s job IS negotiating deals and mediating disputes. Most people come into the profession with absolutely no training and are expected to learn it "on the job". It takes years to develop and certainly a minimum level of education should be obtained. The Pepperdine Course is excellent and eye opening for most everyone who takes it. Nick had 29 years experience negotiating on a daily basis while he was a trial attorney, first for the Santa Clara County District Attorney´s office for 11 years as a Senior Deputy District Attorney (called Assistant District Attorney in some other States), followed by 18 years of private practice. His trial representation of clients covered various legal subject matters. Notwithstanding his experience in daily negotiations (including volunteering his time for the local Bar Association as an Arbitrator between lawyers and their clients), he still felt that it would be beneficial to expose himself to the class to see what else he could learn regarding Mediation and Negotiations. Barbara´s resume is extensive and she negotiated contracts on a daily basis for a number of years for the various companies she worked for. She also felt that taking the course and learning new strategies in negotiation would be extremely helpful. Feel we have left something out? Please call us or email us and let us know. Our information is below. Summary We hope this has been helpful. If you feel that other designations should be included or mentioned, or if you have further questions about these or other designations or certifications, please email or call us. Barbara Lymberis, REALTOR®; RCS-D™; CRS®; SRES®; CLHMS, PMN NickandBarbara@NickandBarbara.com ©Barbara and Nick Lymberis, 2009 |
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