Register Real Estate Advisors

Texas REALTOR® vs. real estate licensee
Holding a real estate agent’s or real estate broker’s license does not make someone a REALTOR®. Here in Texas, membership in the National Association of REALTORS®, the Texas Association of REALTORS®, and one of 89 local associations or boards entitles real estate licensees to use the term “REALTOR®” on their business cards and in their marketing materials. Hiring a Texas REALTOR® means you’ve retained someone who is committed to continuing education, professionalism, and integrity. In addition to upholding the strict REALTOR® Code of Ethics, many Texas REALTORS® (like me) hold one or more professional designations—those letters behind our names indicating advanced or specialized training in real estate. Here are just a few of the various designations and certifications a Texas REALTOR® may hold and what they could mean for you:

Graduate REALTOR® Institute (GRI)
The GRI designation is a mark of distinction that earns REALTORS® respect and confidence from their peers and the general public, demonstrating their commitment to advancing their knowledge in many aspects of the real estate profession.

Certified Residential Specialist (CRS)
Residential salespeople who hold the CRS designation specialize in listing properties, selling, and investing, as well as mortgage financing and computer applications.

Accredited Buyer Representative (ABR)
A buyer’s agent represents the buyer in a real estate transaction, just as a seller’s agent is hired to obtain the price and sale terms sought by the seller. The ABR is the only nationally recognized designation for buyer’s agents.

Certified Real Estate Brokerage Manager (CRB)
The CRB designation is recognized in the real estate profession as the symbol of management excellence and is awarded to brokerage owners and managers.

e-PRO
The e-PRO certification is the real estate industry’s first comprehensive technology certification endorsed by the National Association of REALTORS®.

Texas Affordable Housing Specialist (TAHS)
Some Texas REALTORS® have undergone a 12-hour certification program that arms them with specialized knowledge about affordable housing resources and products for consumers in Texas. A Texas Affordable Housing Specialist is dedicated to increasing the rate of homeownership and retention.

Texas REALTORS®

The ABR offers it’s members a Buyer’s Rep publication that provides members with industry news and updates each month. In the February 2010 edition there’s an article written by Melanie McLane, who is both a broker and a residential appraiser. Her insight is very informative, so I want to share it with my readers. I have summarized her article below.
The work of appraisers has been turned upside-down over the last year due to changes in the industry forced on them by the mortgage crisis taking place nationwide. Most of the changes in policies, procedures, and regulations over the past year have been detrimental for the appraisal industry. This also causes problems for real estate agents and their buyers.
How did this happen? First, in 2007 New York Attorney General Andrew Cuomo filed a lawsuit against First American Mortgage charging they allowed WaMu (Washington Mutual) to improperly pressure appraisers who would appraise at the value needed. In March 2008 Fannie Mae and Freddie Mac agreed to adopt new loan appraisal policies. May 1, 2009 The Home Valuation Code of Conduct (HVCC) became effective for all single-family mortgages (except government-insured loans) delivered to Fannie Mae and Freddie Mac. Feb 15, 2010 was the effective date for HUD’s version of HVCC. November 1, 2010 the original HVCC agreement is set to sunset on this date.
HVCC was designed to improve the integrity of the appraisal process, but several unintended negative consequences have occurred. Appraisal Management Companies take about 40% of the fee from appraisers and expect the appraisals to be completed quickly. This is leaving many appraisers disgruntled. The AMC’s send out bulk requests and the job goes to whoever applies first, which might not be the best appraiser for that particular area. AMC’s, for the most part, remain unregulated in most of the country. To make matters worse, most AMC’s are owned by banks! So are they really a firewall between the lenders and the appraisers?
So how does all of this affect you, the consumer? The quality of appraisals is down, so some buyers may overpay for houses. On the other hand, some appraisals are off in the other direction, causing sellers to lose money. Having an outside party AMC is actually slowing down the appraisal process and causing appraisals to take longer and closings to take longer.
You can learn more about HVCC at http://www.realtor.org/hvcc . I encourage my buyers to use lenders I recommend because I know those lenders because using a lender you don’t know anything about, could cost you your next home. Do not use internet lenders for a something as important as a mortgage! You can ask your lender, when looking for the best loan option, whether they use AMC or do they have an independent appraisal department. Also, how is the lender going to ensure an appraiser with geographic competency. Have local appraisers refused to work for your AMC and if so, why? These are all things you, the borrower, can ask your lender before they order an appraisal.
As a courtesy to my sellers, I include a list of upgrades for the appraiser. I also have the appraiser contact me to schedule the appraisal visit, so that I can talk to him and get his email address and send him a copy of the contract so he knows the purchase price. I also want to know if that appraiser is familiar with the area and has done appraisals in that area before. I want to be able to contact him directly if the house does not appraise in case he overlooked something.
The National Association of Realtors and others have been working to implement a moratorium on HVCC, but right now it is still set to go into full effect on November 1, 2010.

By:  Vicki Fullerton, 2009 Chair of the Houston Association of Realtors, previously printed in the Houston Chronicle

While working with a Realtor to buy or sell a home, you may have seen “GRI”, “CRB”, or “CRE” after a Realtor’s name and wondered what those letters meant.  Like most industries that constantly are changing, real estate demands continuing education throughout a Realtor’s career.

A successful agent must keep up to date with current issues, evolving technology, changing laws and regulations, and other important aspects of the business.  After all, it’s that comprehensive knowledge that gives Realtors the ability to help consumers buy and sell houses successfully. 

The National Association of Realtor (NAR) offers advanced education designation and certification programs through its institutes, societies and councils for Realtors.  Though there are other designations, these programs carry an official endorsement from NAR.

Just as an MBA carries with it a certain distinction in the business world, so do the letters after a Realtor’s name in the world of real estate.  These designations and certification programs are tailored to every real estate specialty you’ve heard of, and probably some you haven’t, so if there’s an area of specialty you need, you almost certainly can find a Realtor who has it.

For example, your Realtor might have extra training as a buyer’s representative, land consultant, commercial investment expert, property manager, appraiser or brokerage manager.  Many Realtors earn several designations to keep as current as possible in multiple areas of the real estate industry.  You may want to work with someone who knows the ins and outs of a particular area.  After all, buying property is pretty complicated.  New technology, laws, procedures, and the increasing sophistication of buyers and sellers require real estate practitioners to perform at top professional levels, and consumers are demanding it.

GRI designation

One of the most comprehensive designations for Realtors is the GRI  (Graduate, Realtor Institute).  It’s a curriculum that requires Realtors to complete an advanced course series that includes 90 hours of classroom instruction.  There’s an emphases on technology, business development, sales and marketing, and critical legal and regulatory issues such as fair housing, brokerage relationships and environmental concerns.  State and local Realtor associations offer these classes, giving Realtors ample opportunity to stay on top of the real estate profession.

The GRI program gives Realtors an understanding of the industry’s finer points and that can only benefit folks who rely on that expertise to find the house of their dreams or sell their longtime residence.  And there’s more.

The following are NAR-endorsed designation and certification programs.  Look for these next time you need a Realtor with a specific area of expertise:

ABR:   Accredited Buyer Representative

ABRM:   Accredited Buyer Representative Manager

ALC:   Accredited Land Consultant

CCIM:  Certified Commercial Investment Member

CIPS:  Certified International Property Specialist

CPM:   Certified Property Manager

CRB:  Certified Real Estate Brokerage Manager

CRS:  Certified Residential Specialist

CRE:   Counselor of Real Estate

GAA:   General Accredited Appraiser

GRI:  Gradate, Realtor Institute

Green:  Sustainable Property Designation

PMN:  Performance Management Network

RCE:  Realtor Association Certified Executive

RAA:  Residential Accredited Appraiser

SRES:  Seniors Real Estate Specialist

SIOR:  Society of Industrial and Office Realtors

Certification Programs:

AHWD:  At Home with Diversity Certification

e-Pro:  Certification program for online professionalism

RSPS:   Resort and Second-home Property Specialist

REPA:  Real Estate Professional Assistant

TNC:  Transnational Referral Certification