Agent? Broker? Realtor? What’s the Difference?

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[photopress:409_0991_IMG_1.jpg,thumb,alignright]The Motley Fool has a nice article explaining the different between a real estate agent, real estate broker and a realtor:

Ever wonder whether a real estate broker and a Realtor are the same thing? Well, they’re not. Not exactly, at least. Someone with a real estate license is a licensed real estate professional, or an agent. This person may also be a Realtor but isn’t necessarily one.

We often think of any real estate agent as a Realtor, but to be one, he or she must be a member of The National Association of Realtors, which has trademarked the word “Realtor.”

A real estate broker, meanwhile, has had additional training and holds a different license. Don’t think that you need a broker and not an agent, though. Either can serve you very well. Although many people casually refer to those who show and sell homes as brokers, they’re often actually agents. Most people use the terms interchangeably.

If you’re curious, I’m a real estate agent (not a broker) and a Realtor.

links for 2005-11-16

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Google Base Launches without “Housing”

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Google BaseGoogle Base launched today without the “housing” option that was available in the temporary site (as shown in this screenshot). Of course, users can still add their own housing information, but if it is not a default option, I doubt it will take off.

The site looks real interesting… Here’s a positive review and here’s a negative review. I’ll post my review after I’ve had a chance to play with it more.

So what impact will this have on the real estate industry?

Short-term: none.
Long-term: It depends on where Google takes it.

links for 2005-11-15

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UPDATE: I’m experimenting with a feature of del.icio.us that lets me post all of the links that I’ve saved for that day. What do people think if I made this a daily feature? (Normally, there won’t be nearly as many links. I was playing with del.icio.us a lot today!) Also, I posted about del.icio.us last May.

Seek a Qualified Mortgage Consultant to Ensure the Best Results

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Taking the step into home ownership is one of the most important financial decisions a person will make in their lifetime. There are many factors to consider when embarking on this venture. Literally hundreds of loan programs are available, and it is important to find the one that best fits your personal long-term goals.

First and foremost, you must have a mortgage consultant in your corner that is willing to take the time to know what your long-term goals are. Communication is the key factor here.

Curious prospective home buyers sometimes turn to Internet-based services just to see what current interest rates are. But a faceless web site will not take the prospect’s future financial planning into consideration or guide the potential borrower through the many nuances of the loan process. When shopping for a home loan, be wary of web-based services that offer programs to reel prospects in with attractive rates that are based upon unrealistic time frames.


If a lender is offering a terrific rate based on a 10-day lock-in period, it is unlikely that the potential home owner would actually be able to find their dream home, get through the negotiation process and win approval from a lender within such a short period of time. This is called short-pricing, and when it comes time to close the transaction, the rate that was originally offered is simply no longer available. As a result, the unfortunate prospect is bulldozed into a loan program with a higher interest rate.

It is highly unlikely that a qualified loan originator whose business is based upon referrals will use unscrupulous tactics such as this to get new customers in the door!

Once you have found a mortgage consultant that you feel comfortable working with, lay your goals out on the table because it will have a tremendous impact on choosing a loan program that meets your specific needs. One of the most important factors to consider is how long you wish to borrow the money for. For example, if you know you will only be in the home for five years, it wouldn’t make sense to opt for a 30-year loan program or pay points up front to secure a lower interest rate. You would not be in the home long enough to benefit from such action.

Your mortgage consultant should be able to narrow down a selection of programs based on the information that you have provided, and present you with an easy-to-read spreadsheet that clearly defines viable options for your interest rate and amortization schedule, monthly payment and any potential savings you may realize by paying points up front.

Moreover, a reputable loan originator will not hesitate to share this information with your tax consultant or financial planner so they may offer additional feedback on your behalf.

Home ownership imparts a rewarding vehicle for building wealth and a strong financial future. The mortgage consultant that you choose should be there not only when your loan closes, but should also provide you with ongoing service to assist you in managing that debt over time.

Is it Time to Refinance to Cash Out?

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rubber duckThe Seattle Times posted an interesting article giving the pros and cons of refinancing homes in order to take out an cash (or a line of credit). Interestingly, the number of people doing this is extremely high with “nearly three out of four homeowners who refinanced through Freddie Mac between July and October cashing out.”

What are the downsides to “cashing out”?

  • By carrying more debt (secured by your house), you put your assets at greater risk if you lose your job, get sick or run into other financial difficulties.
  • More debt also means higher monthly payments, especially if you opt for a 15-year payback term.
  • Refinancing typically costs much more in settlement and loan-origination fees than home-equity lines, unless you have your closing charges rolled into the note rate.

With that said, there are several good reasons to strongly consider an equity line:

  • Convenience and control
  • You pay interest on only the amounts you’ve pulled out, not the approved limit.
  • Most lines allow immediate access to more money using credit cards or checks

List of the Most innovative Search Sites

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Innovative Real Estate TechnologiesThere are so many interesting real estate search sites that are pop up every day, and in the process of trying to cover all of them in a blog format, I think things have gotten a little too scattered. So I took a little time this evening and put all of the sites that I’m aware of on one page along with a few notes about them. Check it out at:

At this point, I’ve broken all of the sites into four categories:

  • National Sites: major MLS and FSBO sites
  • Regional Sites: smaller data sets that are yet to go national
  • Specialty Sites: sold data, property information, etc.
  • Vaporware: still waiting for a product…

This beauty of making this list on a webpage instead of a blog post is that it will be much more fluid. I always feel awkward about updating a blog entry after I’ve posted it, but I’ll feel no qualms about updating this list on a regular basis. Along those lines, if you know of an innovative real estate tool that I’ve missed, please let me know!

Are Home Sales Dropping Too Fast?

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It’s well known that things slow down tremendously in the winter… But none the less there have been some rumblings that things are slowing down too fast and that we might be approaching “bubble territory”. Using some pending home sale data from the NW Reporter, I put together the following chart:
4-County Home Sale Chart

It looks like we’re in a pretty typical October slowdown to me… Seattle homeowners: I’d be curious to know if you are concerned when you see this chart?

Hacking Your Dream Home

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[photopress:Living_Room_shadow.JPG,thumb,alignright]While we’re thinking $100M huge, here’s a question to lighten the mood up:

What sort of “neat” things and convenience features would you design into your dream home?

This question was recently posted at Ask Metafilter and there have been some wonderful responses. Here are some of my favorite:

  • Built-in bookshelves
  • Stereo speaker plug-ins in each room, run to a central stereo. Each room has a on/off switch for the speakers.
  • Built-in main computer area with either good WiFi, or cabled access throughout house.
  • Skylights, as many as possible
  • Japanese soaking tub
  • Good reading light over the toilet
  • Secret room
  • Gas-powered outdoor firepit

It is such a fun question! I found it interesting to see where people focused. Some responses were all about the kitchen… Some all about light… and others all about keeping the bugs out!

Thanks to Fraser at Toronto at Home.

Getting the Best Interest Rate on Your Home Loan?

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Consumers interested in purchasing or refinancing a home will pay an interest rate based on current market conditions and their ability to pay back the loan. The borrower’s income and debt ratios are taken into consideration by the lender, as well as the predictability factor provided by credit scoring. It’s important to have a mortgage professional in your corner that has a keen eye for solutions to improving credit scores in an effort to get the best interest rate possible.

Interest rates associated with various loan programs are broken down into schedules based on credit score ratings. While each lender has its own guidelines, it’s safe to assume that as the consumer’s credit score goes down, interest rates will go up.


A borrower with an outstanding credit rating will get what is called an A-paper loan. This type of borrower is rewarded with a lower interest rate because they have a proven track record of using credit sensibly and paying their bills on time.

Loans designed for consumers with less-than-perfect credit – sometimes referred to as “sub-prime