Recently, I sold a house I owned in a neighborhood. Several people asked me why I asked a residential, local Realtor to help represent me. It is true that I was a local, residential and commercial Realtor for many years (several decades ago), and I am quite familiar with the laws and contracts surrounding residential sales. Nevertheless, utilizing a Realtor that is familiar with our current market and the contemporary residential buyer profile while having an unbiased approach to a home sale is invaluable. While my situation was unique, this is a good opportunity for me to explain a little about the differences and designations in real estate agents.
Real Estate Agents are not always Realtors
Keep in mind that not all agents are created equal – some specialize in certain types of property or have a Realtor designation – so understanding what sets each apart and deciding which type of expert is best suited to meet your needs is important. As a prospective buyer or seller in the real estate market, you may come across mentions of “Realtor designations.” So, what exactly are these designations, and how can they benefit you?
Various Designations
Simply put, the Realtor designation is a credential awarded by the National Association of Realtors® to real estate agents who have completed additional education and training in a particular area of real estate specialization. They are held to a particular code of ethics and are required to undertake continuing education in order to stay in good standing. So, just because someone says they are a “real estate agent” does not mean they are a Realtor, required to follow a nationally established code of ethics and specific continuing education.
Moreover, some agents may hold specialized designations like those from the Realtors Land Institute (RLI) which offers the Accredited Land Consultant (ALC) designation for Realtors. This designation indicates that the agent has received specialized, intense, education, a required amount of land transactions, and has passed the ALC exam. According to Southeastern Land Group and RLI, “the Accredited Land Consultant is a designation offered by the Realtors Land Institute (RLI) …based on a strenuous set of requirements…, and each broker must take and pass a comprehensive exam on a broad range of land-related issues.” ALCs understand the unique challenges and opportunities that come with working in the land real estate market. They have a deep understanding of the complexities surrounding land ownership, such as zoning restrictions, environmental regulations, and tax laws. Whether working with buyers or sellers, ALCs are skilled at navigating the intricate details involved in buying or selling land. Meanwhile, other agents may specialize in luxury home sales, commercial real estate, or other niche markets.
Highest and Best Use of the Land
By understanding the different types of real estate agents available, you can find the agent who is best suited to help you achieve your real estate goals. Too often in my career, I have seen sellers miss opportunities or lose the full value of their property because they have talked to a less qualified agent about the selling or buying of their property rather than looking for the appropriate expertise and credentials in a Realtor. Land Agents help sellers and buyers understand the highest and best use of the land because they look at more than just the acreage or the location, and they know the recently sold properties that are comparable.
Choose the Right Agent for Selling Land
Selling land can be a complex process, especially if you’re trying to navigate it on your own. When selecting an agent, vet their experience and credentials thoroughly. Look for someone who has a strong track record of selling land, has experience in the specialized land market, knows the comparables, and understands how to highlight the highest and best use for your property. Land values are rarely as straightforward as they seem.
In the end, I used a residential Realtor to help sell the house I owned because I knew she had experience in the specific housing market of the home. She helped me address the needs of today’s residential buyer and overcome my partiality of the property. She elevated the professionalism and integrity of the process. Buying and selling property can have significant financial and emotional impacts; careful consideration to qualifications should be given to those you choose to trust with your time, money, and confidence.
