• Hardworking

• Persevering

• Goal oriented

• Independent

• Intelligent

• Self-starters

• Assertive

• People-oriented

• Ambitious

They must be:

• Willing to take instructions

• Willing to invest time and energy

• Adaptable to change

• Flexible to work unstructured hours

• Patient with all types of customers

• Willing to take risks

• Willing to do research

• Good at budgeting time

• Able to listen

The rewards are:

• Potential for high earnings

• Status in the community

• Autonomy

• Time freedom

• Intellectual challenge

• Helping people

• Achievement

• Satisfaction from accomplishment

Q: What is the difference between BROKERS AND SALES AGENTS?
A: A broker is the principal member of a company that engages in property sales. Brokers may employ sales agents or associates who serve the needs of potential buyers and sellers. They make sales presentations, conduct open house tours, identify sources of financing and coordinate the sales transaction.

A broker in general practice may handle many different kinds of property: single-family housing, commercial property, industrial property, income-producing property and farms and acreage. Brokers may also specialize in one or more of these areas, but they need not limit themselves to one specialty

Helping people buy and sell property is one of the most basic and important services a real estate agent performs. For the seller, agents try to sell the property within a reasonable length of time, at a fair price. For the buyer, agents try to find a desirable property that meets their client's needs at a fair price. Because both buyer and seller could use advertisements in the newspaper, why would they use an agent? Agents are experts in the process if buying and selling property, financing, government programs, negotiating, etc.

Their expertise facilitates the transaction, saving clients time, trouble and money. Brokers and sales agents have the added advantage of the Multiple Listing Service (MLS), which provides a wider selection of properties and exposure to more buyers.

The internet has had a huge impact on the residential real estate market in particular. Many prospective buyers now use their access to the Internet - either from their home or office - to gather information on current listings, to research real estate companies and their sales agents and brokers and even to check out current mortgage rates and comparable market listings. Savvy sales agents are aware of this consumer trend of gathering information from the Internet before stepping out to shop or buy, and they will establish an online presence.

Brokers or sales agents for a broker are a central source for both buyers and sellers. They have the facilities and contracts for attracting buyers and desirable property listings to offer to them. This requires that they have a good basic background in residential real estate, as well as in several related areas. Sales agents need to know the community. Agents are expected to be familiar with the market and the amenities available in the neighborhoods they serve. They need to know the various state, federal and local laws affecting the sale and rental of residential real estate. They can then advise the seller as to the expected price range based on comparable sales and other techniques.

In some smaller communities, most of the homes sold are single-family houses. In urban areas, brokers have the opportunity to handle condominiums, cooperatives, apartment buildings, mobile homes and other types of housing.

Buyers expect agents to have a broad knowledge of the neighborhoods and prices of homes in them. They will want to know the comparative advantages of different locations: access to shopping, schools, public transportation and other necessities and amenities. Sales often depend on how quickly and accurately these questions are answered.

Questions are asked about tax and utility rates, building and zoning restrictions and street and highway plans. When showing houses, agents may be consulted about things seeming as unrelated as the kind of grass to grow in the back yard, what it might cost to heat or cool, and whether it is more practical to re-model or build room additions.

Q: What knowledge needed by sales agents?
A: Real estate professionals need to have a thorough understanding of the following:

• Local economics and interest rates

• Real estate law

• The money market

• Fair housing laws

• Government programs:

• FHA

• VA

• FHMA

• Types of financing:

• Mortgage brokerage

• Bank and savings

• Loan financing

• Title searches

• Title insurance

They need to know:

• The investment value and mortgage outlook on properties they represent

• What types of property are handled by different lenders

• Where financing might be available

• The income tax advantages

• Any legal restrictions on the use of the property

They need the ability to relate well with people. Before agents start showing homes to prospective buyers, they should learn something about:

• Basic needs and requirements

Their clients' tastes and lifestyles

• The kind of home they want

• How much they can pay

• What financing terms will be appropriate

• Level and sources of income

With this information, agents can avoid showing unsuitable properties and wasting valuable time, and their efforts are more likely to result in a successful transaction.

Q: What is real estate appraisal?
A: Real estate appraisers determine the value of properties. They need to know acceptable principles of appraisal and related information. They need to have practical experience, technical education and good judgment. With such strong qualifications, successful real estate appraisers are respected real estate specialists.
Real estate is appraised to determine many different types of values:

• Assessed value for tax purposes

• Investment value or present value for a potential investor

• "Book" value for accounting purposes

• Rental value for income projections

• Insurable value

Appraisers gather and evaluate all the factors affecting the potential uses of the property now and in the future. They need to analyze:

• Physical characteristics

• Location

• Present and future earning power

• Estimated cost for modernization or development

By weighing this data and considering other variables and probable changes in the economy, they can estimate the current worth of the property.

Q: How to become an appraiser?
A: If you have an analytical mind, and like to interpret data as well as collect it, you might consider becoming a real estate appraiser. It is also valuable to have some knowledge of mathematics, accounting and economics.
Career opportunities are found in the following areas:

• Large real estate firms

• Insurance companies

• Banks and other lending agencies

• Specialist appraisal firms

• Government agencies

• Tax assessment companies

Appraisers can be retained as expert witnesses in court actions involving real estate values or the valuation of estates and in probate situations.

Even if you do not decide to specialize in appraisal, you will need to have some knowledge of appraisal methods and techniques for any real estate field you choose.

Q: What are the requirements for Illinois Real Estate salesperson and broker Licensing?
A: Each applicant shall be at least 21 years of age, be of good moral character, have a high school education or GED and successfully complete state required education.

The minimum age of 21 years shall be waived for any applicant for a salesperson's license who has attained the age of 18 and can provide evidence of at least 4 semesters of post-secondary study with a major emphasis on real estate courses in a school approved by the OBRE.

Applicants for a salesperson license shall complete an approved course of at least 45 hours.

Broker applicants shall complete 120 hours of approved course work, 45 hours of which shall be the 45 hours required to obtain a salesperson's license, 15 hours of brokerage administration, 15 hours of contracts and conveyances, 15 hours of advanced principles and two 15 hour approved elective courses.

Illinois applicants with a valid sales license are required to complete an additional 75 hours of approved course work. Illinois applicants who are currently admitted to practice law by the Illinois Supreme Court and currently in active standing are exempt from the educational requirements and applicants with a Bachelors or Masters degree in accounting, business, law, finance or real estate may be exempt from the educational requirements. Please contact the Illinois Office of Banks and Real Estate for further details. An applicant for an Illinois real estate license meeting the above requirements has 3 options with regard to education:

1. Complete a 45-hour course and obtain a salesperson's license.

2. Complete an additional 75 hours while working as a salesperson then test for a broker's license when complete.

3. Complete 120 hours of education and obtain a broker's license when complete.

Q: What are licensing requirements for real estate appraisers?
A: An appraiser must be licensed to do any federal related transaction or any assignment where the client requests or requires a licensed appraiser. There are three levels of Appraisal Licensing in Illinois.
The first level of licensing is an Associate Appraiser - 157. An Associate Appraiser must work under the supervision of a State Certified Appraiser for a minimum of two years. To be eligible for the state licensing examination, candidates must meet the following requirements:

• Successfully complete 75 hours of pre-license course work:

1. Uniform Standards of Professional Appraisal Practice (USPAP) – 15 Hr (formerly IL-1)

2. Basic real estate appraisal principles – 30 Hr (formerly IL-II)

3. Basic appraisal procedures – 30 Hr (formerly IL-III):

• Complete an appraisal application. Application can be found at www.goamp.com

• Submit proof of course work in the form of an original sealed school transcript

• Submit proof of course work in the form of an original sealed school transcript. Transcripts, for all curriculums, are valid indefinitely.

• Also, a Non-Resident Consent Form needs to be completed if the applicant lists an out-of-state address.

The second level of Licensing is a Certified Residential Appraiser - 156. After two years, an Associate Appraiser may upgrade to a Certified Residential Appraiser. The Certified Residential Appraiser candidate is solely responsible for their own work and can open their own appraisal company. Certified Residential Appraisers are qualified to appraise residences and up to 4 units of housing, under appraiser certification law. Standards call for less education, less experience, and less comprehensive exam than for General Certification. To obtain the 156 level of licensing candidates must:

1. Take additional classes (see below)

1. Appraisal Approaches – 30 hours

2. Appraisal Statistics, Valuation Cores, Finance, USPAP Update & Report Writing - 15 hours

2. Provide the state with a two-year Experience Log. LOG-APP – Must provide evidence of obtaining 2,500 hours of appraisal experience during no fewer than 24 months. Land area and building square footage must be completed for each appraisal listed on the log. For condominiums, they must write in “condo”. There is no time limit on how far back experience can be used. Obtain the form at http://www.obre.state.il.us/realest/Forms/logapp.pdf

3. Submit proof of course work in the form of an original sealed school transcript. Transcripts, for all curriculums, are valid indefinitely.

4. Take the Certified residential Exam. For a copy of the Appraiser Candidate Handbook go to www.goamp.com.

5. Complete an appraisal application which can be found at www.goamp.com.
   The third level of licensing is the Certified General Appraiser – 153. To be eligible for this examination, candidates must meet the following requirements:

• Prove successful completion of 180 hours of pre-license course work:

1. Uniform Standards Of Professional Appraisal Practice (USPAP) – 15 Hours (formerly IL-1)

2. Basic Real Estate Appraisal Principles – 30 Hours (Formerly IL-2)

3. Basic Appraisal Procedures – 30 Hours (Formerly IL-3)

4. Appraisal Approaches – 30 Hours IL-4

5. Appraisal Statistics, Valuation Cores, Finance, USPAP Update & Report Writing – 15 Hours (IL-6)

6. Market Analysis and Highest and Best Use – 15 Hours

7. Appraisal Income Approach – 15 Hours

8. Report Writing – 15 Hours

9. Elective Course – 15 Hours

(If an applicant is upgrading from a 154 or 157, they only need to submit proof of curriculums 4 through 9 above. If an applicant is upgrading from a 156, they only need to submit proof of curriculums 6 through 9 above.)

• Submit proof of course work in the form of an original sealed school transcript. Transcripts, for all curriculums, are valid indefinitely.

• Provide an Experience Log (LOG-APP) of 3,000 hours of appraisal experience during no fewer than 30 months. Land area for acres must indicate “acres”. There is no time limit on how far back experience can be used. The Appraisal Experience Log Field & Review form can be found at www.goamp.com. in the Appraisal Candidate Handbook.

• Complete an appraisal application. Application can be found at www.goamp.com

• Submit proof of course work in the form of an original sealed school transcript. Transcripts, for all curriculums, are valid indefinitely.

• Also, a Non-Resident Consent Form needs to be completed if the applicant lists an out-of-state address.

Course work for all licensing must have been completed through an approved Illinois Course Provider.

Q: What is mortgage financing?
A: Almost everybody who buys real estate has to borrow most of the money to pay for it. Money for good investment properties can be available from insurance companies, banks, savings and loans and other financial institutions. People who bring these borrowers and lenders together are mortgage financing specialists. For the lender, they provide detailed information about the local property and the factors that can influence its value. For the borrower, they provide their extensive knowledge of the mortgage market.

People whose sole job is to place the loan are mortgage brokers. If they also service the loan - collect payments, see that taxes and insurance are paid and the property maintained - they are mortgage bankers

Q: What is the difference between mortgage (loan) broker and loan originator?
A: Brokers find the lenders for their clients to get mortgages from while originators are the lenders.

Questions Frequently Asked by Loan Originators

Q: How do I know if I need to register for the Loan Originator Permanent Certificate of Registration?
A: All loan originators and solicitors were to be provisionally registered with the State of Illinois by July 1, 2004.

A loan originator is defined as any natural person who, for compensation or in the expectation of compensation, either directly or indirectly makes, offers to make, solicits, places, or negotiates a residential mortgage loan.

A solicitor is defined as any natural person, who for compensation or in the expectation of compensation either directly or indirectly, solicits residential mortgage loan applications or expressions of interest to apply for a residential mortgage loan; and collects personal, credit or appraisal information; and then forwards this information to a licensee and its registered loan originators or an exempt entity.
The State of Illinois is now moving forward with permanent Loan Originator Registration. All provisionally registered Loan originators and Solicitors and those new to the industry must complete the permanent registration process. This process includes a successful completion of criminal and credit background checks as well as passing an examination. Solicitors are not required to take the examination.

Q: Where can applicants get information regarding the loan originator examination?
A: Information regarding the examination can be found at the Applied Measurement Professionals‘ (AMP) website at www.goamp.com.

Q: How does a person register to take the examination?
A: The examination is administered by Applied Measurement Professionals (AMP). Information regarding examination registration can be found on the AMP website at www.goamp.com. Once the applicant accesses the AMP website s/he can obtain the information from the Loan Originator Applicant Handbook.

Q: What can be done to prepare for the examination?
A: Trade associations such as the Illinois Mortgage Bankers Association (IMBA) and Illinois Association of Mortgage Brokers (IAMB), have prepared loan originator training courses. Information can be found at their websites at www.IMBA.org and www.IAMB.org.

Q: Is there a prerequisite course an applicant must take prior to the examination?
A: No. There is no prerequisite course requirement for applicants prior to sitting for the examination.

Q: What is the passing grade for the loan originator examination?
A: The examination is comprised of 100 questions. 85 questions are used to determine your score, and 15 questions are being pre-tested for future versions of the examination. Pretest questions are not identified as such and are not included in the candidate’s score. The 100 questions are divided into two major content areas. A candidate must answer 61 of the 85 questions correctly to pass the examination. Be advised that your score report will only reflect a “pass” or a “fail”.

A list of the two major content areas and other general information regarding the examination can be found in the Candidate Examination Handbook. This Handbook can be found on the AMP website at www.goamp.com.

Q: How many times can an applicant sit for the exam?
A: Applicants can take the examination multiple times until they succeed.

Q: Which applicants are required to submit fingerprints for the criminal background check?
A: All applicants must submit their fingerprints so a criminal background check can be performed. The fingerprints are submitted both to the Illinois State Police and the Federal Bureau of Investigation. The results are forwarded directly to DBRE for review. Currently DBRE is using vendors approved by the Illinois State Police. The list of approved vendors can be found on the IDFPR website at www.IDFPR.com or the AMP website at www.goamp.com.

Q: Do all loan originators, no matter how much experience they have, need to maintain their continuing education on an annual basis?
A: Yes. Continuing Education is an annual, calendar year (January – December) requirement. As of January 1, 2004, all loan originators must obtain 6 hours of continuing education credit. If you fail to complete the required continuing education you and/or the mortgage broker licensee which employs you could be subject to discipline.
 

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