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First: All real estate licensees are not Realtors. A Realtor must be a member of the National Association of Realtors (NAR) to use the trademarked term "Realtor". There are many excellent licensees who do not need to be a member of NAR, but typically they are super-specialized people doing something like business brokerage. Realtors voluntarily join the NAR and must subscribe to a strict "Code of Ethics" and other contractural obligations.
Second: As the real estate market declines some, a home buyer or seller will discover there are fewer people disguising themselves as Realtors. Only true professionals will have the ability to survive. It's a matter of value now. Buying or selling a home should never be treated lightly. I personally favor making Real Estate a more exclusive career similar to being a CPA, Doctor, Lawyer as we often a far more involved in a family's long term welfare than many of the latter. I believe we should be equally educated, equally constricted, and fully professional. I won't see it in my lifetime, but the down market will be the start.
First: All real estate licensees are not Realtors. A Realtor must be a member of the National Association of Realtors (NAR) to use the trademarked term "Realtor". There are many excellent licensees who do not need to be a member of NAR, but typically they are super-specialized people doing something like business brokerage. Realtors voluntarily join the NAR and must subscribe to a strict "Code of Ethics" and other contractural obligations.
Second: As the real estate market declines some, a home buyer or seller will discover there are fewer people disguising themselves as Realtors. Only true professionals will have the ability to survive. It's a matter of value now. Buying or selling a home should never be treated lightly. I personally favor making Real Estate a more exclusive career similar to being a CPA, Doctor, Lawyer as we often a far more involved in a family's long term welfare than many of the latter. I believe we should be equally educated, equally constricted, and fully professional. I won't see it in my lifetime, but the down market will be the start.
Thanks for illuminating that distinction. I do not know the current standards for RE licensing. Back in my day, one would take a weekend course and BINGO, he/she would be a licensee the next week. I understand it has gotten a bit more exclusive, but seriously, many licensees hold themselves out as having much more knowledge than they actually possess.
I am not down on all RE licensees. In fact, I hired a big commercial brokerage house out in SF to sell my last property back in 2005. The commission was in the 6 digit range and the broker earned every penny. Most licensees do not operate near this level.
The problem with the current flock of agents is that most are new (less than 15 years) and their idea of success might be measured by a short term standard conflicting with the long term welfare of their clients. Many hopped in just in the last 5 years or so to try to make easy money. They adopted a churn and burn mentality and now their clients are left holding the bag.
North Carolina is phasing out becoming a real estate salesperson. Now, all current and future real estate licensees are required to obtain a Real Estate Broker license. This involves more extensive training, time commitment, and monetary investment than before. I agree that not everyone has taken the time and education to properly represent clients in a professional and educated manner. Hopefully the required education and time commitment will enhance client representation in my profession.
Non-realtor with a clarification question here. I have never understood the difference between a RE Agent and a RE Agent/Broker. I understand that usually when a RE Agent works at a company they are under a "Broker in Charge" but I have also encountered many Agents who are Agents/Brokers yet they are not the "broker in charge" where they work. Not sure if my question makes sense. Just want to know what the difference is between being an Agent and a Broker and what it means to for those who are actually both? Can one provide more services from another? I have met a few Realtors with 20+ years of experience yet they are simply agents and are not brokers. Is there a reason why somebody would choose to remain an agent and never become a broker?
There are 50 states with 50 different laws, but most state have reciprocal licensing agreements and most all use the same licensing text books. That being said, in Kentucky, only a Principal Broker (one per firm) can represent a buyer and/or seller of real estate (with some exceptions which are so rare, we won't use them in this discussion). As the Principal Broker of FourSquare Realty, I have 18 agents who represent me. These agents can be licensed as Associate Brokers. This means that while they are qualified to take listings, they choose not to have to maintain escrow accounts and can take advantage of the economics of mass marketing.
In Kentucky, we also have "Sales Agents" who are not-qualified to take listings even if they wish to do all the escrow account managment, etc. Some Sales Agents are extraodinarily qualified and actually can be better real estate practioners than the principal broker that holds their license.
10 to 20 years ago, the step between Agent and Broker was quite small, but recently, many states are requiring more extraordinary efforts to become a broker. In Kentucky, an associate broker can simply apply to the commission, open an escrow account and go it alone or hire new associates/agents to work in their office.
The problem with the current flock of agents is that most are new (less than 15 years) and their idea of success might be measured by a short term standard conflicting with the long term welfare of their clients. Many hopped in just in the last 5 years or so to try to make easy money. They adopted a churn and burn mentality and now their clients are left holding the bag.
You have hit the nail on the head. I fight every day to make my people act and operate more professionally. Sometimes with great success, other times, I want to boot them out. I have some great people in my firm, and a couple in the past that turned out to be zeros. I learn every day.
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In CA, a real estate sales person can become a real estate broker after 2 years of experience by taking classes and passing tests. If one is a broker, he can associate with another broker and is known as an Associate Broker. A corporation must have a Designated Broker, who also must be an officer of the corporation.
I am also amazed at the people that never went beyond salesperson after many years of work.
An agent can be the agent of a buyer or seller, with the appropriate agreement signed by the brokerage & the client.
or
an agent is also an agent of the brokerage, upon signing an agreement to work for pay.
Most people call licensees or Realtors "agents" because they think it is the correct term to use. Even Realtors call themselves agents when they do not have a client relationship with anyone.
2bindenver, In Kentucky, while you wrote the short-cut way to the fact of the matter in reality, the law implies that Alice Agent is not legally an agent for anyone but Betty Broker. All agency is laid upon the Principal Broker even if the Brokerage chooses to operate under the Designated Agency model.
Also where I grew up, if you wanted a dark carbonated beverage, you asked for a coke while you might have been thinking of a Pepsi, RC Cola, Double Cola, or even a Coca-Cola brand soft drink. The NAR is fighting hard to keep their brand name "Realtor" as a brand and not a house hold word such as Band-Aid or Kleenex.
2bindenver, In Kentucky, while you wrote the short-cut way to the fact of the matter in reality, the law implies that Alice Agent is not legally an agent for anyone but Betty Broker. All agency is laid upon the Principal Broker even if the Brokerage chooses to operate under the Designated Agency model.
Also where I grew up, if you wanted a dark carbonated beverage, you asked for a coke while you might have been thinking of a Pepsi, RC Cola, Double Cola, or even a Coca-Cola brand soft drink. The NAR is fighting hard to keep their brand name "Realtor" as a brand and not a house hold word such as Band-Aid or Kleenex.
Don't bet on it...even in Ky. There are places where the role of the designated agent is clear. Some of the Canadian provinces for instance. But in NV and every place else in the US I have personally looked it in NOT clear. When the Broker designates an agent...exactly what is it that is designated?
In the clear Canadian cases the designated agent is the broker. No fiddle-faddle...the broker imparts to the agent the brokers role for that side of that transaction. Can't take it back either without creating a dual.
Note also in NV you are the agent of the customer from the first meeting. Don't need no paper atal....just happens. Again not defined in statute or regulation but none the less true. That is unless you are not the agent...which also happens.
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