I find that many agents don't know what this or that acronym means such as "CRS" or "CCIM" behind a agent's name. With that in mind, obviously the general public (those without a Real Estate License) probably know even less about them, so let's talk about it!
First of all these letters are not a guarantee of any designations. I met an agent once who had "DMA" after his name, and I asked him what it stood for. He smiled and said "Doesn't Mean Anything". While I found this very funny, I also questioned the ethics as even it was meant in good humor, it might have the effect of deception on some buyer, somewhere.
That being said, I would also point out that while ACTUAL designations clearly indicate one SHOULD be more specialized, this isn't always the case either: I was speaking with a friend of mine recently, and she told me how she chose an agent because that agent had the most acronyms after her name of anyone in that agent's marketplace. Seemed to make sense to me, being an agent with 4 acronyms and growing.
But, as it turned out, she said she simply found that the agent was an education junkie and really didn't do a very good job at all. The agent was excellent at taking classes, poor at real estate, or so it was on that transaction at least.
I point out these two cases as I'm a fair guy and don't like absolutes on anything. I also know agents who have designation "XXX" and I can see that they don't really put it to work for them. What is that old saying about the world being full of educated derelicts? Perhaps. Anyway, the point is that as with ALL education, it's quite worthless unless the agent actually USES it in his/her vocation.
That being said, I personally don't think designations mean a thing, only actions do. For example, CRS is the designation I am most proud of having behind my name. A big part of it is strategy on building referral networks. However, I know many agents WITHOUT the CRS designation that are better at referral networks than I am. Talent can certainly fill in for lack of classroom time in some cases. So can common sense.
With all this in mind, let's now discuss designations when they ARE valuable and how valuable they can be to the person an agent works for.
In Residential Real Estate, in my opinion, the 2 most important designations would be CRS (Certified Residential Specialist) and GRI (Graduate of REALTOR Institute). They are both very difficult to obtain and require almost 100 hours each of unrequired education for the REALTOR (note, only REALTORS can get these designations, not just any agent). Again, that's a lot of classroom time, but pretty meaningless unless one USES it.
GRI is a set of 5 classes, one day of professional standards. The other four classes are all 2 day classes and are generally designed to increase the knowledge of the REALTOR. For example, one of the 4 segments is 2 days of construction. We learn all about how houses are built and how water is the most common cause of deferred maintenance and it seemed like 95% of the class was about water. Personally, this was a crucial class for me as my construction knowledge was weak before this class. GRI also covers 1031 tax exchanges, technology issues, and investment properties and their valuations.
CRS or Certified Residential Specialist is considered by many to be the most elite designation one can obtain in Residential Real Estate. Not only do you have to have several dozens of hours of classes, but you also need 25-75 transactions in a limited amount of time. There are core classes and also electives, all of them are designed to make one a better agent AND a better "business". The core classes are the best in my opinion, as they concentrate for 2 days (16 hours) on one subject, like "listing" or "referrals" and so on.
Keep in mind, only 4% of REALTORS have the CRS designation (it's not easy to get) yet those 4% do 25% of the business, that means that only 1 in 25 agents are CRS agents, yet those agents do 1 in 4 of the transactions....pretty amazing franky, clearly they must be on to something and obviously it benefits their clients as they are selling houses.
There are many other important designations for Residential Real Estate, I would specifically call attention to the designations that focus on one form of agency or another, such as "ABR" which stands for "Accredited Buyer Representative". If you have a Buyer's Agent, wouldn't you prefer one that took the time to get more specialized at working for YOU (the buyer)? I know I would.
Another good example is "ASP" or Accredited Staging Professional. This one isn't easy to get in my opinion. I'm close to the end of the Earth in Laramie, Wyoming and many classes one needs for designations just don't show up near us very often. However, once it shows up, it's pretty easy, it's one 2-day class to learn how to stage a home so it is best prepared to sell. Clearly this is an important designation for a Seller's Agent (Listing agent). I began using what I learned immediately and it's quite amazing. The statistics also show how much quicker a staged home sells than a non-staged home. Most of the big cities in California have markets where staging is the norm. These are all examples.
Ultimately however, my advice would be to ask the agent about designations in the interview. Who cares if they have the XYZ and ABC after their name if they don't put them to work for you. So ask them what they mean and what they learned and how they will use it listing your house or working for you as a Buyer's Agent. Just as a Bachelor of Science might have forgotten all he learned in college so long ago....unless he's been using it and incorporated it into his job.
I have four designations, and always feel like I could squeeze more out of them. I frequently go back through my text books and pull out something new. I like to make sure I get my money's worth. After all, I took those classes to be a better agent, so I better use them. Same with college, sometimes I go back into a law book or a business book to brush up on some facet of finance or strategy or whatever I find useful at the time.
I would also stress the importance of the CCIM designation, this is the prestigious designation for a Commercial REALTOR and it is VERY difficult to get, and VERY expensive to take those classes. I don't have one, but maybe some day...
Ultimately I would say for myself: I have all these designations (CRS, GRI, ASP, e-Pro...and I'm not done yet) because my personal business strategy is: HUMILITY. I am never done learning and always seek to improve. I want to be the best and know that only action and effort can get me there. One can always polish a mirror a little more. I listen to what ANYONE says. If a buyer gives me a suggestion, I listen closely and many times find he/she is right and incorporate what they said into my business strategy. I also watch my fellow agents and if I see something good I incorporate it. The person who sits down, will soon enough be passed in any field of life (not just business), don't forget the turtle and the hare.... I'm not sure which I am, but I AM always on the move!
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