Real Estate Round-Up: K is for knowledge

Knowledge is comprised of many facets. Knowledge is fact based. It is based on the specific published words or data.

Knowledge is also experience based. It is based on exposure to experiences that provide a basis to understanding the overall situation that exists. Knowledge is also derived from the wisdom of others. In real estate, a professional, licensed Realtor uses all three of these sources of knowledge to provide the best service to their client.

A Realtor’s knowledge begins with the education that is required to obtain a license. A Realtor must pass a series of classes to gain a general understanding of the basics of real estate. Principals, practice, agency, ethics, and legal aspects

are the building blocks. Once the classes are passed, then a state license exam is required.

A Realtor’s education is just beginning once they have a license. A licensee (a person with a valid license to practice real estate) must hang their license under a broker’s license. That broker is responsible for the ongoing training and supervision of the licensee.

I always explain to new licensees that what they learned to get a license is nothing like what they need to know to be able to effectively work in real estate. An educated, professional, ethical Broker is the key to the effectiveness of a Realtor.

Training is ongoing. The contracts and documents we use to assist clients with buying and selling real estate are updated every year. Subtle or sometimes grand changes are made to better explain the process to clients. Every part of a transaction must be in writing.

The contracts and documents are the tools to define the agreement, between sellers and Realtors, buyers and sellers, and buyers and Realtors. Working with an educated Realtor will make your experience better, even when bumps occur along the way. Realtors are required to take classes every four years to renew their license.

Some of the best knowledge is gained through experience. Because of that, many brokers team their new Realtors with an experienced Realtor. Experience is often the best teacher. We share our experiences with our new Realtors, to help them recognize potential bumps in the road and to be prepared to work to get over those bumps, not be sidelined by them. Sometimes an experience is the only way to learn. I shared stories of a few experiences we’ve had over the years, last week.

Some of those experiences cost us money, like the wood destroying pest story from last week. The key is, we owned that experience, and it was not going to ever happen again. One of the things I like best about real estate is that it is never the same experience, again and again. Each transaction has unique parties, with unique circumstances, involved with unique properties. Our years of experience help us problem solve when faced with something.

Wisdom from others is very helpful. Brokers are the key to much of the wisdom Realtors gain, especially in the early years of a career in real estate. Mentors, also, are particularly great partners for new Realtors. Many Realtors belong to mastermind groups so they can bounce things off other contemporaries. Sharing stories with each other provides a safe place to flush things out. It also is a great place to discover that all Realtors face challenges, no matter how long they have been licensed. Realtors also have an incredible source of wisdom from the California Association of Realtors.

Realtors receive regular updates on changes and hot issues that affect all of California. Realtors have access to an ombudsman to get help when they have a question about how best to handle a situation and a legal hotline that is staffed by association attorneys with advice on best practices, based on the contracts that we all use.

Knowledge is not stagnant. Realtors are required to continue to be better educated.

The best Realtors, pursue knowledge regularly, that goes beyond what is required, to become the best of the best. Sometimes clients hire a Realtor because they found them on-line. Sometimes clients hire a Realtor because they are the least expensive. Neither are necessarily the right measurement of what is best for the client.

Start asking questions like “how many years have you been licensed?” “do you have a broker that provides training and support?” and “how many homes have you sold?” If you’re satisfied with those three answers, then work with them. If you are not sure, don’t risk your financial future with someone who is not knowledgeable enough to help you with something you’re not knowledgeable about.

Your Realtor is your person. They are there to educate you, explain the options you have, and then present those options to the other Realtor, to help you have success.

Buying and selling real estate can be stressful if you don’t select a knowledgeable Realtor. Do not simply look for the least expensive and think that the market is so hot that it doesn’t make a difference. In a hot market like the one we are currently in, experience is paramount and worth its weight in gold. Choose knowledge my friend.

Kim Murphy can be reached at [email protected] or 760-415-9292 or at 130 N Main Avenue, in Fallbrook. Her broker license is #01229921, and she is on the board of directors for the California Association of Realtors.