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May 5, 2002

Alphabet Soup & Homeowner Warranties

by Liz Merryman GRI, ePRO, SRES - Key Realty LLC

Alphabet Soup: What Does It All Mean?

Doctors have it. Lawyers have it. REALTORS have it too. Haven't you ever wondered what all those initials behind their names mean?

Mostly, they indicate that the REALTOR has had further education, sometimes, specialized education. Appraisal, international, commercial, residential, industrial, land an property management are some of the real estate specialties represented by these designations.

What does this mean for you, the consumer? A REALTOR who pursues education is committed to providing the best possible service to their customers.

Some designations the home buying public will see most frequently are:

ABR - Accredited Buyer Representative
Course work focuses specifically on representing the real estate buyer.

CRS - Certified Residential Specialist
This designation requires the REALTOR to provide proof of extensive real estate experience as well as take advanced education in related areas like finance, technology and marketing.

GRI - Graduate of REALTOR Institute
This is a generalized course of study covering many topics, similar to a graduate degree in real estate. It provides for a solid base of information for real estate practice.

Some newer designations available now are:

e-Pro - Internet Professional
Training certifies online professionalism. The course is taken entirely online.

SRES - Senior Real Estate Specialist
REALTORS who specialize in helping senior clients with their unique issues and needs, such as reverse mortgages, equity conversion, tax consequences and estate planning.

Home Owner Warranty: Why Bother?

Home owner warranties have been around for quite a few years. There may have been some problems with them initially, where unscrupulous companies did not pay the claims, but now a good home owner warranty with a reputable company can be a very good buy!

For one low callout fee the owner will have a local, licensed repair person come to the home and will either repair or repalce any covered item.

Generally, a warranty covers the seller during the listing period. The buyer is covered for a period of one year after the sale. Most warranties cover all the elctrical, plumbing and appliances inside the structure of the home. The heating system and air conditioner are covered after the sale, though additional coverage can be purchased for the seller, should he wish to be covered during the listing period.

The policy is paid for at closing regardless of who is purchasing the policy. This is helpful to the seller as the price can be deducted from his proceeds at the closing table. There is no out of pocket expense at the time of listing.

Buyers are familiar with the advantages of home warranties and often look for them. If a home does not come with a warranty, most buyers will request one.

Prices range from $400 to $500 and are renewable after the initial year. This is money well spent to market your home and provide peace of mind after the sale.

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