Some REALTORS® may shy away from the financing aspects of a deal because they feel out of their element. But Douglas Richards, CRS, a retired REALTOR® in Sandy, Utah, says REALTORS® should acquire knowledge about financing so they do the most effective job possible for their customers.
He teaches CRS 205 Financing and Tax Advantages for Agents and Their Clients. As part of the class, Richards teaches REALTORS® about debt and mortgage management strategies.
For instance, the class touches on areas such as refinancing and how long one needs to stay in a home to break even on the cost of refinancing. He also discusses when it might be appropriate for borrowers to get an ARM (adjustable rate mortgage) or accelerate their mortgage.
The goal is to give REALTORS® additional financial tools to help their customers make good financial decisions, Richards says. There are lots of different kinds of loans and sometimes lenders package them in a certain way to make them appear better, but they may not be. There are many cases where real estate agents armed with a little knowledge might be able to save customers thousands of dollars.
In addition to CRS courses, some REALTORS® find it useful to meet periodically with local mortgage brokers to stay up-to-date on lending trends. Tonyeil Spencer, CRS, Broker Owner of Spencer Realty, LLC in Aurora, Colorado, for instance, meets twice a month with the lenders on her recommended list to find out about any changes that may be occurring in federal, city or state loan programs and whether there have been or are expected to be any changes to their loan underwriting requirements.
While they have to be careful not to go outside their area of expertise, anything REALTORS® can do to increase their knowledge about different types of financing options helps tighten a REALTORs® bond with customers. If they have a question about anything to do with real estate, I want them to call me. I dont want them to call someone else, Richards says.
