Agents, Brokers and Realtors...oh my! All of these terms are referenced in society like they are interchangeable to describe a real estate professional. However, they are actually all different. The following information will help you decide which professional may be best for you.
I always like to describe agents and brokers in relation to school. Real estate agents are like college graduates. Real estate brokers are like graduates with a master's degree. They both are knowledgeable in their field, but in order to get a broker's license, one has to take more advanced classes and take a harder test.
In order to become an agent, one has to take a Principles of Real Estate course followed by a test. Upon passing that test they can proceed to the state exam. There are no prerequisites to become an agent.
In order to become a broker, one has to have at least 2 years experience as an agent to qualify and apply and take the state exam. That 2 year pre-requisite may be exempt if the person has a four-year degree. Before the exam, the applicant must take a series of courses such as real estate law, real estate agency, ethics, etc. The state exam is twice as long as the agent's and requires greater knowledge of real estate practices and law.
There are three types of different brokers, as well. The above description is for a transaction broker who can assist buyers or sellers. There are also Managing Brokers who manage a company, but they usually don't sell homes. Their main priority is to assist agents and brokers in their office transactions rather than assist clients. A Designated Broker is above the Managing Broker, and their job is on a more corporate level as opposed to in the field. The general public usually don't see Managing or Designated Brokers unless we work for them. Buyers and sellers typically deal with transaction brokers and just refer to them as "brokers."
A Realtor is an agent or broker who is a member of the National Association of Realtors (NAR). Only members can call themselves Realtors. There is about 1.3 million Realtors, mainly in the USA. There are about 1 million agents and brokers who are not members of NAR.
Oh, and I ought to put it out there that Realtor is pronounced Real-TOR...not Real-a-tor. Don't ever hire an agent or broker who can't say their own profession.
It's also a misconception that agents are less worthy than brokers; that's hardly the case. It's just about experience and how much knowledge a professional wants to gain; just like there are knowledgeable people out there who don't have a master's degree and knowledgeable people who do have one. I have an agent's license in California and a broker's license in Washington. When choosing a real estate professional, you should base your decision not only on a person's knowledge and expertise, but also on how well they will work for you.
Friday, July 16, 2010
Monday, July 5, 2010
So you're in Escrow...
...great! Now all that's left is the 30 something days till the home is mine! Think again. After many weeks (or months) of searching online, going to open houses, writing offers, getting rejected then finally getting accepted, the hard part is done; or so you thought.
Escrow, simply put, is the process of transferring a free and clear title from seller to buyer. During this time, your loan application (assuming this isn't an all cash deal) is put under scrutiny by dozens of people to make sure everything is correct, valid and current. Throughout Escrow, your credit score and financial assets will be checked periodically. If anything changes for the worst, everything is put on hold, and if there's too many delays, you could essentially fall out of Escrow.
Joe and Lisa (names have been changed) had stellar credit. In fact, Joe had a FICO score of over 800! Rare, but achievable. Together, he and his wife only had three open lines of credit; two credit cards and one truck payment. Joe was pre-approved by a major bank, and everything was going well. We made an offer on a great starter home for them. Joe worked as a contractor, and got a bonus once his last job was completed. So, he decided to reduce more of his debt and pay off his truck. Sounds reasonable, right? Well, in his case...not so reasonable.
Why is that? Well, in order to be approved for a mortgage, the bank wants to see that you have at least three open lines of credit. Joe just closed his third line. The bank caught that and therefore could not move forward with his loan. We lost out on that one home. Still determined to buy, Joe got a gas credit card, waited a few weeks for it to appear on his credit report, and re-applied for a mortgage. It worked! He was approved through another bank, and we were able to resume our search. Joe and Lisa found the perfect little one-story, three-car garage. Just right for the family, two cars and the ATVs.
The moral of this story...make sure you know the lending rules and requirements. Here's a little list you can follow while you're in Escrow.
Until your Escrow is closed, DO NOT:
1. Change your job or profession
2. Decide to be unemployed
3. Damage your credit by missing payments or stop paying bills
4. Buy a high dollar item, such as a luxury car or boat
5. Apply for new credit cards
6. Buy new furniture
7. Make any high dollar purchase on any credit cards
8. Make any changes to decrease savings account
9. Co-sign for anyone for anything
10. Delay completion of any paperwork requested by the mortgage company.
Escrow, simply put, is the process of transferring a free and clear title from seller to buyer. During this time, your loan application (assuming this isn't an all cash deal) is put under scrutiny by dozens of people to make sure everything is correct, valid and current. Throughout Escrow, your credit score and financial assets will be checked periodically. If anything changes for the worst, everything is put on hold, and if there's too many delays, you could essentially fall out of Escrow.
Joe and Lisa (names have been changed) had stellar credit. In fact, Joe had a FICO score of over 800! Rare, but achievable. Together, he and his wife only had three open lines of credit; two credit cards and one truck payment. Joe was pre-approved by a major bank, and everything was going well. We made an offer on a great starter home for them. Joe worked as a contractor, and got a bonus once his last job was completed. So, he decided to reduce more of his debt and pay off his truck. Sounds reasonable, right? Well, in his case...not so reasonable.
Why is that? Well, in order to be approved for a mortgage, the bank wants to see that you have at least three open lines of credit. Joe just closed his third line. The bank caught that and therefore could not move forward with his loan. We lost out on that one home. Still determined to buy, Joe got a gas credit card, waited a few weeks for it to appear on his credit report, and re-applied for a mortgage. It worked! He was approved through another bank, and we were able to resume our search. Joe and Lisa found the perfect little one-story, three-car garage. Just right for the family, two cars and the ATVs.
The moral of this story...make sure you know the lending rules and requirements. Here's a little list you can follow while you're in Escrow.
Until your Escrow is closed, DO NOT:
1. Change your job or profession
2. Decide to be unemployed
3. Damage your credit by missing payments or stop paying bills
4. Buy a high dollar item, such as a luxury car or boat
5. Apply for new credit cards
6. Buy new furniture
7. Make any high dollar purchase on any credit cards
8. Make any changes to decrease savings account
9. Co-sign for anyone for anything
10. Delay completion of any paperwork requested by the mortgage company.
Saturday, July 3, 2010
Welcome!
Hello fellow neighbors,
My name is Christine Cordova, and I am your local Realtor in the Greater Seattle Area. I live in the beautiful city of Bothell so if you see me touring the neighborhoods, don't be shy; come and say hi!
Like most real estate blogs, I will post buying and selling knowledge with a dash of finance, of course. However, as a special treat, I will delve into the minds of my clients and provide insightful, almost hands-on experience of the nitty-gritty scene of real estate.
All of my clients in years past love stories I tell of different buying and selling experiences. They always try to compare it to their own. And why not? Who wouldn't want to know how Mr. Smith bought an investment home in this economy!
If buying or selling is really what you want (or need) to do, I'll show you how. The market is what you make of it. Read more to see how your dreams can be a "realty."
My name is Christine Cordova, and I am your local Realtor in the Greater Seattle Area. I live in the beautiful city of Bothell so if you see me touring the neighborhoods, don't be shy; come and say hi!
Like most real estate blogs, I will post buying and selling knowledge with a dash of finance, of course. However, as a special treat, I will delve into the minds of my clients and provide insightful, almost hands-on experience of the nitty-gritty scene of real estate.
All of my clients in years past love stories I tell of different buying and selling experiences. They always try to compare it to their own. And why not? Who wouldn't want to know how Mr. Smith bought an investment home in this economy!
If buying or selling is really what you want (or need) to do, I'll show you how. The market is what you make of it. Read more to see how your dreams can be a "realty."
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