On November 11, the National Association of REALTORS® announced changes to their Code of Ethics training requirement. These changes were recently approved by the presidential advisory group (PAG) and the NAR Leadership Team.
This news has created a flurry of social media comments and questions from REALTORS® trying to understand the changes.
Here are key changes that were announced:
Code of Ethics training required for REALTORS® will be required every THREE years rather than every two years. The deadline for the current enforcement period has been extended to December 31, 2021 (was December 31, 2020).
After December 31, 2021, only courses and equivalencies provided by local, state or national REALTOR® associations can satisfy the Code of Ethics training requirement.
There will be changes to the learning objectives.
What does this mean for Illinois real estate brokers?
This will not impact the upcoming April 30, 2020 broker license renewal (and April 30, 2021 managing broker license renewal). Historically, nearly all local REALTOR® associations have allowed their members to satisfy this training requirement by completing Code of Ethics training with state-licensed education providers. The National Association of REALTORS® has indicated that this practice may continue through December 31, 2021.This seems reasonable, given the large number of brokers (throughout the country) who have already completed Code of Ethics training from state-licensed education providers and intended to satisfy the requirement for the current enforcement period.
Real Estate Institute has been a leader in real estate education for over 25 years. Our team of experts is standing by to answer your questions about your requirements, our continuing education or post-license courses and the renewal process. Please don’t hesitate to contact us online or at 800-995-1700.
All negotiations involve multiple “value” elements. The key to success is to first identify the value elements on each side and then “trade” value elements to reach agreement.
Easier said than done! Why? Because most negotiators don’t spend enough time identifying and truly understanding the value elements. The trading part is easy!
A home buyer and seller were negotiating and after lowering the price somewhat, the seller finally said, “I won’t go any lower.” The buyer asked his agent to find out why the seller wouldn’t go any lower. After several conversations with the listing agent, the reason was uncovered. The seller wouldn’t go any lower because he wanted “bragging rights” for his neighborhood – meaning he wanted to be able to say he had sold at the highest price to date in his neighborhood!
This “value” element was very important to the seller. In a negotiation, you can trade or exchange items of equal value. Understanding how valuable something is becomes a key objective of the skilled negotiator so that equal value can be obtained in the exchange. If the seller truly values his bragging rights (while still being realistic about the true value of the property), then the buyer should ask for something of “equal” value from the seller. For example “My buyer will pay your seller’s price if your seller agrees to a 15-day close.”
You have probably heard that the best time to buy a car is at the end of the month. This is usually because the car salesperson and/or dealer is trying to reach a goal or quota that carries some type of bonus from the manufacturer. Car dealers may even “lose” money on an individual sale because the bonus will more than cover the loss. So if your purchase happens to be key to achieving the bonus, you can negotiate really good terms for yourself!
So how can you identify the other side’s value elements in a negotiation? Try these 3 approaches:
Ask! But first, tell them in general what is important to your side.
Role modeling the behavior you want from the other side increases the odds that you will get the same behavior in return. As a buyer’s agent you might say to the listing agent, “From my buyer’s perspective, price, closing costs support, and personal property (refrigerator, washer, and dryer) are very important in this deal. What is most important to your seller?” If the listing agent shares something like, “Well, for my seller, price, closing date, and your buyer’s qualifications are key”, then you have a dialogue started where you can continue to exchange information and ask questions to determine the key elements of value.
What if the other side won’t give you any information?
Suppose the listing agent simply says, “Just submit your offer and we’ll respond based on that.” Then you might try the “self-interest” approach. The buyer’s agent could say something like, “My buyer would like to submit the very best offer to your seller. The more specific you can be about what is really important to your seller, the better the chances of my buyer meeting your seller’s needs.” In essence, you are trying to educate the other side about why it is in their self-interest to share important information – it increases the odds of getting what you want.
If the other side still won’t open up, try asking simple “either/or” questions to get an indication of what is important. “Would your seller prefer a quicker or longer closing date?” “Would your seller prefer a clean offer or would they entertain an offer with closing cost support for the buyer?” “Would your seller prefer to pay the buyer to do any necessary repairs or does your seller want to handle the repairs on their own?” By narrowing the choices you give the other side, you can focus in on the true value elements.
Sharing your value elements and understanding the other side’s value elements helps establish the basis for a win-win outcome.
Do you have a Managing Broker (471) license? Have you started thinking about your 2013 renewal requirements? If so, you may be finding it difficult to determine the education requirements. How much CE do you really need? 12 hours? 15 hours? 18 hours? What about Broker Management CE?
So how do you figure it out? We checked in with the IDFPR to be sure. We confirmed that these are the requirements.
Education requirements for your 2013 Managing Broker license renewal:
How did you
Broker Management Requirement
Deadline for education completion and license renewal
Passed the Broker to Managing Broker Proficiency Exam
of live instruction
April 30, 2013
Completed the 45-hour Broker to Managing Broker Transition Course
for 2013 renewal
April 30, 2013
Initial applicant through
45-hour Managing Broker Pre-License course and state exam
of live instruction
April 30, 2013
* Any continuing education credit earned after April 30, 2010, can be counted toward your 2013 continuing education requirement.
Now that you know what your education requirements are, you’re ready to get started. Let us know if we can help. More information is available at the following links:
The IDFPR has begun mailing Broker license renewal forms. If you’re a Broker who has transitioned or plans to transition to Managing Broker, DO NOT USE this form. This is strictly for renewal as a Broker licensee.
This renewal form should ONLY be used by the following licensees:
Brokers licensed on or before 4/30/11 who are NOT transitioning to the Managing Broker license.
Brokers licensed after 5/1/2011 who transitioned from the Salesperson license.
Brokers licensed after 5/1/2011 who completed a 90 credit hour pre-license program before passing the state exam and applying for their license.
As a reminder, the deadline for Broker renewals is 4/30/12. Continuing education (CE) must be obtained from an IDFPR-approved real estate school. Your CE course provider must report your CE course completion.
Salesperson licensees will not receive renewal forms since this license type expires permanently on 4/30/12. Click here for information on how to remain a licensed real estate agent.