What is the difference between a real estate agent and a real estate broker? Experience, knowledge, longevity, and responsibility differentiate the two statuses. A real estate agent is dependent on the real estate broker in order to maintain his or her license and conduct business.
While I can only speak for Ohio, where my license is held, most other states have very similar requirements.
To become a real estate agent in Ohio, you must be at least 18 years of age, have no felony or criminal convictions, be sponsored by a real estate broker, complete the required coursework, and pass the licensing exam. If born after 1950, you must have received a high school diploma or equivalent.
The course work includes 40 hours of Real Estate Principals and Practices, 40 hours of Real Estate Law, 20 hours of Real Estate Appraisel, and 20 hours of Real Estate Finance. After completing the coursework you must pass the licensing exam to become licensed.
After receiving your license, you then have the legal right to complete real estate transactions, market and sell real estate, and work in the best interest of the client in real estate transactions. The agent works for a real estate broker, and all transactions are legally those of the broker. The commission on each sale is determined by an agreement made between the broker and the agent.
To become a real estate broker you must have been a licensed agent for at least 2 years and have completed 20 transactions. You must also take additional courses in Business Economics, Business Law, Financial Management, and Human Resource Management. Also required is the completion of 90 quarter hours at an accredited college or university. After passing the Broker's Exam, you receive your broker's license.
An agent who becomes a broker may or may not choose to open his or her own business. As a business owner, the broker has the ultimate responsibility for all contracts written by any agent whose license he or she holds. The contracts, both for listings and sales, are the property, and the responsibility, of the broker.
The broker provides space to conduct business, pays for advertising, office machines and supplies, postage and supplies, contract materials, marketing materials, and usually additional training through in-house forums and seminars. A broker shoulders the major financial burden of operating the business. Each agent is considered to be self-employed, and is responsible for taxes and fees individually.
In general, a real estate broker brings a more fully developed knowledge of the real estate industry and its rewards, trends, and pitfalls. Their experience over the years helps put each market change into perspective, and allows the broker to pass this knowledge on to the agents who work for him.
Saturday, February 16, 2008
Thursday, February 14, 2008
The Dangers of Mold in Your Home
The dangers of mold in your home have been well documented and publicized much lately. A 300% increase in cases of asthma in the last 20 years has been linked to the exposure to mold, as has the increase in respiratory infections and sinus infections. The young, the elderly, and others with suppressed immune systems (such as HIV-AIDS patients) are at higher risk to develop infections from mold.
Mold is everywhere. Over 50 molds are considered to be the cause of serious problems, including Stachbotry, more commonly known as "black mold". Mold can become a significant problem when it is exposed to water or high humidity (above 55%). Damp, dark areas with poor circulation allow the mold spores to sprout and spread. As a realtor, I have inspected many, many homes, and can almost tell immediately when mold is present. Since mold grows in dark places, it is not always readily visible, but you can small the musty odor immediately if it is present in the home. The odor usually is your first clue that a problem exists.
Mold spores grow on organic materials, such as carpet, wood, leather, sheetrock, and insulation. Mold can also be found growing along walls where cold air from the exterior comes in contact with an interior wall. Behind dressers, headboards, and in closets are prime places for mold growth.
If you find mold growing in your home, and the area it covers is less than 10 square feet, EPA guidelines allow you to clean it up yourself. For larger area, you need to call in a professional, which can be found in the Yellow Pages under "Fire and Water Damage Restoration".
To clean it up yourself, use protective gloves and goggles. Close off the room you are working in to limit the spread of airborne spores. Bag up and remove moldy materials and put them directly in the trash. Then wash the surface where the mold is growing with laundry detergent and warm water and allow it to dry thoroughly. You can also use a solution of 1/4 cup bleach to one quart of water, wash down the surface, let it dry, and repeat. After the area has dried thoroughly, apply a borate-based detergent solution and don't rinse. a borate-based detergent will list "borate" on the label. This helps to prevent mold from growing here in the future.
The best defense against mold in your home is a good offense. Fix water leaks in your home and use a fan to dry out the area. Repair leaky roofs. Install and use exhaust fans in the bathroom and kitchen areas. Vacuum and clean your home regularly to remove mold spores, using a HEPA filter that will trap the spores and not release them back into the air.
Be vigilant in looking for mold around the house when there has been any type of water situation, and dry it out right away to prevent mold from growing in the first place.
Mold is everywhere. Over 50 molds are considered to be the cause of serious problems, including Stachbotry, more commonly known as "black mold". Mold can become a significant problem when it is exposed to water or high humidity (above 55%). Damp, dark areas with poor circulation allow the mold spores to sprout and spread. As a realtor, I have inspected many, many homes, and can almost tell immediately when mold is present. Since mold grows in dark places, it is not always readily visible, but you can small the musty odor immediately if it is present in the home. The odor usually is your first clue that a problem exists.
Mold spores grow on organic materials, such as carpet, wood, leather, sheetrock, and insulation. Mold can also be found growing along walls where cold air from the exterior comes in contact with an interior wall. Behind dressers, headboards, and in closets are prime places for mold growth.
If you find mold growing in your home, and the area it covers is less than 10 square feet, EPA guidelines allow you to clean it up yourself. For larger area, you need to call in a professional, which can be found in the Yellow Pages under "Fire and Water Damage Restoration".
To clean it up yourself, use protective gloves and goggles. Close off the room you are working in to limit the spread of airborne spores. Bag up and remove moldy materials and put them directly in the trash. Then wash the surface where the mold is growing with laundry detergent and warm water and allow it to dry thoroughly. You can also use a solution of 1/4 cup bleach to one quart of water, wash down the surface, let it dry, and repeat. After the area has dried thoroughly, apply a borate-based detergent solution and don't rinse. a borate-based detergent will list "borate" on the label. This helps to prevent mold from growing here in the future.
The best defense against mold in your home is a good offense. Fix water leaks in your home and use a fan to dry out the area. Repair leaky roofs. Install and use exhaust fans in the bathroom and kitchen areas. Vacuum and clean your home regularly to remove mold spores, using a HEPA filter that will trap the spores and not release them back into the air.
Be vigilant in looking for mold around the house when there has been any type of water situation, and dry it out right away to prevent mold from growing in the first place.
Buying Your First Home
Buying your first home in a depressed housing market is much the same as for any other market. A real estate market is considered to be depressed when there are more sellers than there are buyers. Sellers in this type of market may make some adjustments in the price or other concessions to complete the sale, but your basic guidelines, as a first time home buyer, should remain the same. Here are some tips that will help you to know what to expect as you go through the process:
Contact a lender to receive pre-approval for a loan
This will give you a price range for homes that you should be looking at, and also add more clout to your purchase offer when you submit it. There is no sense wasting your time and effort looking at $400,000 houses, when, realistically, you can only afford $200,000. Checking with the lender early can also allow you to clear up any credit problems ahead of time.
Compare Mortgages
There are so many different types of mortagages available right now that you need to have your lender explain what is available to you. Though interest rates have dropped in recent weeks, the criteria to obtain a loan has been tightened. Ask the lender to explain to you, in detail, the difference between a fixed rate loan, and adjustable rate loan, and interest only loans. Then you can make an informed decision as to what is right for you.
Choose a Realtor
Ask your family, friends, co-workers and neighbors to recommend a realtor they may have worked with on their home purchase. Most will be more than willing to recommend someone that they trust and did a good job for them. Remember, the realtor you choose works for you. The seller pays the commission, but your realtor has the legal duty to work in your best interests. They are experienced with the buying and selling process and know how to work through any problems you may encounter while purchasing your first home. You are doing this for the first time. The realtor deals with it daily.
Find a Home You Like
Work with your realtor to make him or her aware of the type of house you have in mind. Do you want a low-maintanence exterior? Garage? Fenced yard? Basement? 2,3, or 4 bedrooms? Single floor plan or two story? If you already have a specific neighborhood picked out, your realtor can search all possible listings that match your criteria. If you are not sure, ask the realtor to show you homes in different neighborhoods until you find the one that feels right for you.
With the multitude of information listed on the internet these days, you can do your own search for a home without using a realtor. Just remember that you will have to do all the legwork yourself, including contacting the seller for a viewing of the home, negotiating a selling price, obtaining a title company to handle the closing, and locating an inspector to check out the property. If you are working with a realtor, he or she will handle these details for you.
Make and Offer
After you have found your dream house, it's time to make an offer to purchase. This is a binding contract between you and the seller. You will be expected to put up "earnest money", which is a sign of good faith that you will complete the purchase. This will be deducted from your down payment at the closing, so you are not just giving away the money. Make your offer subject to an inspection of the property, acceptable to you, before the acutal sale is committed. In a depressed market, the seller may be willing to accept a lower price or make other concessions to sell the house (such as paying all or part of the closing costs or providing a 1 year home warranty on the property).
Have a Whole House Inspection
Hire a reputable inspector to thoroughly inspect all areas of the house. They will be able to determine that all systems are or are not operating properly or are in need of repair, and can alert you to any problems that may arise in the near future. If there is a serious problem you can request that the owner fix the problem before you buy the house, which he may, or may not do. If he won't, it's your choice whether or not to continue with the contract.
Closing the Deal
If everything checks out with the inspection and you are satisfied with the contract, your lender will prepare the documents needed to transfer the property from the current owner to you, and set up a closing date. After the closing, the property legally belongs to you, and you have just purchased your first home.
Contact a lender to receive pre-approval for a loan
This will give you a price range for homes that you should be looking at, and also add more clout to your purchase offer when you submit it. There is no sense wasting your time and effort looking at $400,000 houses, when, realistically, you can only afford $200,000. Checking with the lender early can also allow you to clear up any credit problems ahead of time.
Compare Mortgages
There are so many different types of mortagages available right now that you need to have your lender explain what is available to you. Though interest rates have dropped in recent weeks, the criteria to obtain a loan has been tightened. Ask the lender to explain to you, in detail, the difference between a fixed rate loan, and adjustable rate loan, and interest only loans. Then you can make an informed decision as to what is right for you.
Choose a Realtor
Ask your family, friends, co-workers and neighbors to recommend a realtor they may have worked with on their home purchase. Most will be more than willing to recommend someone that they trust and did a good job for them. Remember, the realtor you choose works for you. The seller pays the commission, but your realtor has the legal duty to work in your best interests. They are experienced with the buying and selling process and know how to work through any problems you may encounter while purchasing your first home. You are doing this for the first time. The realtor deals with it daily.
Find a Home You Like
Work with your realtor to make him or her aware of the type of house you have in mind. Do you want a low-maintanence exterior? Garage? Fenced yard? Basement? 2,3, or 4 bedrooms? Single floor plan or two story? If you already have a specific neighborhood picked out, your realtor can search all possible listings that match your criteria. If you are not sure, ask the realtor to show you homes in different neighborhoods until you find the one that feels right for you.
With the multitude of information listed on the internet these days, you can do your own search for a home without using a realtor. Just remember that you will have to do all the legwork yourself, including contacting the seller for a viewing of the home, negotiating a selling price, obtaining a title company to handle the closing, and locating an inspector to check out the property. If you are working with a realtor, he or she will handle these details for you.
Make and Offer
After you have found your dream house, it's time to make an offer to purchase. This is a binding contract between you and the seller. You will be expected to put up "earnest money", which is a sign of good faith that you will complete the purchase. This will be deducted from your down payment at the closing, so you are not just giving away the money. Make your offer subject to an inspection of the property, acceptable to you, before the acutal sale is committed. In a depressed market, the seller may be willing to accept a lower price or make other concessions to sell the house (such as paying all or part of the closing costs or providing a 1 year home warranty on the property).
Have a Whole House Inspection
Hire a reputable inspector to thoroughly inspect all areas of the house. They will be able to determine that all systems are or are not operating properly or are in need of repair, and can alert you to any problems that may arise in the near future. If there is a serious problem you can request that the owner fix the problem before you buy the house, which he may, or may not do. If he won't, it's your choice whether or not to continue with the contract.
Closing the Deal
If everything checks out with the inspection and you are satisfied with the contract, your lender will prepare the documents needed to transfer the property from the current owner to you, and set up a closing date. After the closing, the property legally belongs to you, and you have just purchased your first home.
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