by Rich Schiffer, Weichert Realtors®
In this article, I will explore the ABCs of Designations, focusing on REALTOR® Designations. If you ever asked yourself any of the following questions, then this article may shed some light for you:
- Who do Designations apply to?
- What are the different Designations?
- Why would I want or need a Designation?
- When are Designations important?
- How might having one or more Designations help my business?
- Where can I earn a Designation?
Who do Designations apply to?
Many professionals, whether they be REALTORS®, Stagers, Financial Advisors, Doctors, Lawyers, Butchers, Bakers or Candlestick Makers, often put themselves forward as experts in particular disciplines. The professional associations to which they subscribe (NAR, for example) have set up "Designations" to self-regulate this practice. Only those that have met predetermined standards, set forth by the association, can profess to their specialty by the use of the Designations.
What are the different Designations?
There are MANY different designations. Not all state associations have "accepted" each designation, and some States may have accepted designations that are not officially accredited by the National Association.
The Pennsylvania Association of REALTORS® has accredited the following designations and certifications:
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 (Membership by invitation only)
GAA: General Accredited Appraiser
GRI: Graduate REALTOR® Institute
PMN: Performance Management Network
RCE: REALTOR® association Certified Executive
RAA: Residential Accredited Appraiser
SIOR: Society of Industrial and Office REALTORS®
AHWD: At Home With Diversity
e-Pro: Internet Professional
REPA: Real Estate Professional Assistant
RSPS: Resort & Second-home Property Specialist
TRC: Transnational Referral Certification
Your state REALTOR association will have detailed information on the designations that they officially recognize.
For a nice printable list of current Designations set forth by the National Association of Realtors, click here.
There are other designations which are not yet widely recognized. SRES (Senior Real Estate Specialist -- specializing in the needs of Senior citizens) and the Eco-Broker designation (specializing in "green" or environmentally friendly options in housing) are two examples.
Why would I want or need a Designation?
Some Realtors have a string of letters after their name that look like nothing other than a spilled can of alphabet soup. Other REALTORS®, including some very successful ones with many years of experience working as a professional in the Real Estate Industry have not a single stray letter after their name.
Some people insist that the specialization/designation is the way to go, to attract their target market. Others say that no amount of letters after your name will increase your pay, and wouldn't consider pursuing a designation. Those on either side of the question equally zealous about their position, and equally convinced that they are on the right path. Why this dichotomy?
Some proponents of designations suggest that those with designations make more money than those REALTORS® without designations. One study concluded that an "average REALTOR®" made $39,000 compared to $156,000 made by those with the GRI designation.
Those that argue against the "alphabet soup" say that no combination of letters will actually bring you more business. It is the level of service that you provide and the quality of your knowledge and follow through that brings the true reward. A Realtor I greatly admire, Chris Smith of Weichert, Realtors®, in West Chester PA recommends earning your Broker's License above any Designation. The general knowledge required to earn that State issued license (as opposed to association issued designations) far outweighs the specialized knowledge represented by the designations. Remember that the qualifications for designations are essentially self-regulated within the industry, whereas Licensing requirements are regulated by state and federal laws. As such the Broker's License carries more weight for many consumers.
Will additional letters after your name get you more business? Will consumers pick you over your competition because of 3 or 4 letters? Maybe. Maybe not. Ultimately, it is how you put your knowledge into practice that will set you apart from all the other REALTORS® vying for the same consumers.
When are Designations important?
Designations serve to distinguish yourself above others only in the eyes of those for whom the designations mean anything. You must decide for yourself which path best suits your business plan, and what will distinguish you in the consumers eyes.
Personally, I do intend to pursue a couple of designations that seem to align with my business plan. Whether or not I choose to actually add the designations to my business card is still up for consideration. To me, the title REALTOR® says enough -- that I am a Real Estate Professional, sworn to uphold high ethical standard.
How might having one or more Designations help my business?
In my opinion, only when consumers know what the designations mean, and they start searching for a Realtor based on a particular designation will the letters themselves actually translate to additional business. The knowledge gained and skills learned while earning a designation, if put into practice, could enhance your ability to serve your clients, and convert your prospects -- that is what will increase your bottom line, not the letters themselves.
Additionally, some of the courses required for the designations may also be accepted by your state as approved Continuing Education Credits, which may be a requirement for your license renewal.
It should be pointed out, that to maintain certain designations, you must also maintain membership in the organization that sponsors the designation. This could translate to additional annual membership dues, above and beyond the cost of the courses you initially must take to earn the designation. Some designations or certifications have no such continuing fee. As you evaluate which ones may be right for you, be sure you also understand any additional financial obligations you may need to take on.
Where can I earn a Designation?
Some designations can be earned by taking exclusively on-line courses. Others must be taken during special training seminars and sessions set up by the sponsoring organizations. Your local association will have specific offerings that you can take advantage of.
To find educational opportunities in your state, click here.
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