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Answers (27)
- John Krol, "Broker John"
- Contributions:22
No, they can use MLS direct access for only $99.00 and save the real estate listing commission. The cost to maintain a license (E&O insurance, broker fees, lic. fees, mls fees.etc..) plus the liability for selling your own property ( the number 1 E&O insurance claim) just does not make sense.
Anyone who wants to sell in SW Florida can go to http://www.mlsmarketingonline.com and sell with no listing commission.
Most people get in to the business thinking it is easy money, well they soon realize the effort and work needed to make a living in the business, and that is why only 1% of the 6,000 agents in my board only make a living at it. Save yourself pain and money if you do not want to be fully dedicated to the business and be a refferal agent or use direct MLS access.
Anyone who wants to sell in SW Florida can go to http://www.mlsmarketingonline.com and sell with no listing commission.
Most people get in to the business thinking it is easy money, well they soon realize the effort and work needed to make a living in the business, and that is why only 1% of the 6,000 agents in my board only make a living at it. Save yourself pain and money if you do not want to be fully dedicated to the business and be a refferal agent or use direct MLS access.
- Eric Thompson, "Eric Thompson"
- Contributions:39
If you have an interest in real estate it wouldn't be a bad idea to start now and sell your own home. Would need to take classes and be hired by a broker which is not tough. In order to pay for all of the fees you'd need to sell a house or two a year for it to pay off. However if you have no interest in continuing in the business it would be a lot of effort just to sell your own home and then get out ... likely not worth it in the end.
- Sebastian Martinez, "Sebastian Martinez"
- Contributions:18
PLAIN SIMPLE- IT'S NUTS, Its a very silly idea, unless you have some interest in staying in the Biz as a real estate agent.
See, most agents are sold on the idea that it only cost $299 and two weeks to became an agent, soon as you pass the examination, you then get slap with a $2000 bill for high memberships fees, biz cards, electronic keys, etc.-that's keeping cheap. (sorry no web site at this price)
PLUS you'll need to find a broker to hire you, he or she will partner you with some else, since you don't have any experience and another agent will be doing the work for you, sadly but eminent and your commission will be split. YOU be lucky to get 25% of the split of the split of the split.
BUT then again I know some nuts that got started that way, Oh yes, I remember when they wooping $500 check- Ironically some stayed, so that they could recoup some of the loses.
Best,
Seb
See, most agents are sold on the idea that it only cost $299 and two weeks to became an agent, soon as you pass the examination, you then get slap with a $2000 bill for high memberships fees, biz cards, electronic keys, etc.-that's keeping cheap. (sorry no web site at this price)
PLUS you'll need to find a broker to hire you, he or she will partner you with some else, since you don't have any experience and another agent will be doing the work for you, sadly but eminent and your commission will be split. YOU be lucky to get 25% of the split of the split of the split.
BUT then again I know some nuts that got started that way, Oh yes, I remember when they wooping $500 check- Ironically some stayed, so that they could recoup some of the loses.
Best,
Seb
- Nancy Lee, "An OrderLee Home"
- Contributions:1195
1) I would look at the legal requirements to broker a property in both locations (where you are selling and where you are buying). It is possible, especially if you are planning to change states, you would end up having to get trained/tested/etc twice. In which case, you might consider selling fsbo and becoming an agent/broker only in the place you are moving to.
2) Are you planning to become an agent as a part or full time career? If I did that, I am not sure I would want myself as my first client. I would probably look for a brokerage that offers a mentor program to complete my training with hands-on experience first. But, that is just me.
3) If you are not planning to pursue RE as a career, I would go the fsbo route to sell (there is a lot of excellent advice on these threads and on the internet), then start by looking for fsbo's where I was buying. That way, I would not pay agent's fees OR for the training.
2) Are you planning to become an agent as a part or full time career? If I did that, I am not sure I would want myself as my first client. I would probably look for a brokerage that offers a mentor program to complete my training with hands-on experience first. But, that is just me.
3) If you are not planning to pursue RE as a career, I would go the fsbo route to sell (there is a lot of excellent advice on these threads and on the internet), then start by looking for fsbo's where I was buying. That way, I would not pay agent's fees OR for the training.
- Kenna Real Estate
- Contributions:953
I like what Sunnyside said. If you have interest and some know-how then why not. There are several other great points made here. I'll throw in a couple of more and some questions to ask yourself.
Depending what you are buying, maybe a bank owned home etc. the seller may decide to refuse to pay you a commission because you are licensed but buying for yourself (may depend on location). You may be able to fight it or just not ask any commission etc.
What if the negotiations get hairy and you don't know exactly how to get past the unexpected hurdles, it wasn't covered in RE school (yes your broker could help) but more importantly you are emotionally invested in the deal, and that is difficult for some to separate in a real estate transaction.
Many deals fall apart nowadays. Can you keep one together if needed? especially when you really want the house? What is that going to cost you?
If the other party whether selling or listing has an agent representation and a good one at that, they could have the upper hand in negotiations as they have experience and may end up with a deal.
These are just a few things that came to mind.
Having said that, there are a few people that have done well on their one, and they did not get their license.
Depending what you are buying, maybe a bank owned home etc. the seller may decide to refuse to pay you a commission because you are licensed but buying for yourself (may depend on location). You may be able to fight it or just not ask any commission etc.
What if the negotiations get hairy and you don't know exactly how to get past the unexpected hurdles, it wasn't covered in RE school (yes your broker could help) but more importantly you are emotionally invested in the deal, and that is difficult for some to separate in a real estate transaction.
Many deals fall apart nowadays. Can you keep one together if needed? especially when you really want the house? What is that going to cost you?
If the other party whether selling or listing has an agent representation and a good one at that, they could have the upper hand in negotiations as they have experience and may end up with a deal.
These are just a few things that came to mind.
Having said that, there are a few people that have done well on their one, and they did not get their license.
- frisky1
- Contributions:448
no problem Cindy, I do agree with you--it would be a non issue if the person had their licence. but commission is often negotiable until the day the thing closes.
- Cindy LaPeer ABR, e-PRO,SFR, Cdrs, "Houston Metro Pro"
- Contributions:2239
Frisky1 - I'm not saying it doesn't happen, but the listing contract is between the listing broker (not necessarily the agent) and the seller. The lb doen't have to negotiate that commission w/the seller when a buyer comes along w/o an agent. Some real estate companies won't let their agents negotiate down on the commissions. While there are those of us that do negotiate if it is the best interest of our client, there are a lot more who don't. So... if ndnhat has his/her license, it would be a non-issue.
Not trying to annoy you; this is the first time I've ever written about this.
Not trying to annoy you; this is the first time I've ever written about this.
- frisky1
- Contributions:448
"Don't be fooled into thinking you will get a better deal w/o a buyer's agent b/c the listing contract that states the commission is signed before a buyer is ever found for the property usually."
That just means a conversation must happen between the listing agent and the seller on reducing the commission to get the deal through when a particularly stubborn and smart buyer comes along with an offer. There are always ways to get that commission down and partially into the buyers pocket.
As Sunnyview says, I think only if you are generally interested in real estate, or have very specific needs that you need tons of control over, then it might be worth it. And it depends on the state, New Jersey's 70 plus hours of RE school would likely be mind numbing for most unless there was a big monetary payoff at the end.
That just means a conversation must happen between the listing agent and the seller on reducing the commission to get the deal through when a particularly stubborn and smart buyer comes along with an offer. There are always ways to get that commission down and partially into the buyers pocket.
As Sunnyview says, I think only if you are generally interested in real estate, or have very specific needs that you need tons of control over, then it might be worth it. And it depends on the state, New Jersey's 70 plus hours of RE school would likely be mind numbing for most unless there was a big monetary payoff at the end.
- falsedawn
- Contributions:98
Don't be fooled into thinking you will get a better deal w/o a buyer's agent b/c the listing contract that states the commission is signed before a buyer is ever found for the property usually
Has this theory not been debunked every time it has come up?
What if there is a clause that specifies a lower commission rate for non-represented buyers, making a lowr offer potentially just as attractive as a higher offer from a represented buyer?
If not, what if the seller agent is salivating at the thought of full commission and is more incentivized to persuade the seller to accept a lower offer?
What if the buyer outright asks the seller agent to re-write the contract with a lower commission rate?
What if the buyer asks for "rebate" check for a portion of what a buyer agent would get?
Ahhhh, I didn't want to get into this, but it makes me a little annoyed.
Knowledge is power, and absolutely everything is negotiable.
Has this theory not been debunked every time it has come up?
What if there is a clause that specifies a lower commission rate for non-represented buyers, making a lowr offer potentially just as attractive as a higher offer from a represented buyer?
If not, what if the seller agent is salivating at the thought of full commission and is more incentivized to persuade the seller to accept a lower offer?
What if the buyer outright asks the seller agent to re-write the contract with a lower commission rate?
What if the buyer asks for "rebate" check for a portion of what a buyer agent would get?
Ahhhh, I didn't want to get into this, but it makes me a little annoyed.
Knowledge is power, and absolutely everything is negotiable.
- wetdawgs
- Contributions:26833
Connie: how many years did you attend real estate school to get your license? Tuition? I suspect both were considerably less than the dental surgeons that I meet. (Let's compare apples to apples).
A license to groom pets takes about as long to obtain as a real estate license, and yes, i would groom my own dog.
A license to groom pets takes about as long to obtain as a real estate license, and yes, i would groom my own dog.
- klarek the realist
- Contributions:7044
Connie, I didn't go through YEARS of expensive dental school, so I'll gladly pay the $400 or whatever to get my teeth cleaned. Nice comparison though to an agent that banks thousands and didn't need to go to school.
- Connie Wildasinn, "Connie Wildasin"
- Contributions:1178
the amount of potentially LOST money is more... would you do your own dental surgery to save money? even if you knew how?
- Cindy LaPeer ABR, e-PRO,SFR, Cdrs, "Houston Metro Pro"
- Contributions:2239
On the buyer's side, I think a license would be useful. Most of the time, the commission is built into the contract between the listing broker and seller. If a buyer chooses not to be represented, then the listing broker still makes the full (or almost full) commission. However, if you're a Realtor representing yourself in a transaction, that split will come to you not the listing broker. Don't be fooled into thinking you will get a better deal w/o a buyer's agent b/c the listing contract that states the commission is signed before a buyer is ever found for the property usually. Make sense??
Also, many agents will work w/a seller who is also a buyer as far as commissions go. Everything is negotaiable.
Also, many agents will work w/a seller who is also a buyer as far as commissions go. Everything is negotaiable.
- sunnyview
- Contributions:25139
I would think that it is not worth getting licensed just to save the commission unless you are already good at or interested in real estate. It is true that you could save money if you are good at marketing, know your local market well and have the ability to price according to market trends, but if you aren't good at those things, getting a license just makes you a FSBO seller with a fancy license. You may cost yourself money by overpricing, not negotiating effectively or by lacking the professional personality to deal with buyers directly.
Some FSBO's would make excellent agents and do an effective job of marketing their properties. Others fail miserably. If you already have the tools to sell yourself, why would you pay for the licensing classes to become an agent? If you don't have the tools to sell already, the license won't automatically give them to you. They are generally a practiced skill that develops over time. Take a look at your current skill base and ask yourself if you want a side career in RE. If the answer is yes, I agree with Ms.Cindy that you should go for it.
Some FSBO's would make excellent agents and do an effective job of marketing their properties. Others fail miserably. If you already have the tools to sell yourself, why would you pay for the licensing classes to become an agent? If you don't have the tools to sell already, the license won't automatically give them to you. They are generally a practiced skill that develops over time. Take a look at your current skill base and ask yourself if you want a side career in RE. If the answer is yes, I agree with Ms.Cindy that you should go for it.
- Cindy LaPeer ABR, e-PRO,SFR, Cdrs, "Houston Metro Pro"
- Contributions:2239
Again... knowledge is key here whether you do it yourself or have an agent do it. Either way, it takes research, understanding and motivation to get the job done well. If selling/buying a home is done on a whim w/little of the 3 things I mentioned, it can cost the seller/buyer thousands no matter who is in charge.
And if I had to mend my own clothes or fix my car, I wouldn't go anywhere b/c I'd have no transportation and nothing to wear! I don't know anything about doing either one except that I know I don't want to do them! LOL!
- Tiffany Bond, "TiffanyBond"
- Contributions:3010
I would recommend doing the research and determining if you think you can handle the transaction yourself. If you only ever intend to represent yourself, you don't need the license - if you want to save money, save it on that too. Pretty much all of the information is available online for free and in more depth than most of the classes.
- klarek the realist
- Contributions:7044
"kinda funny though that it was taken as such and that Mechanic and tailor were not mentioned in the responding comments"
Because in those instances it isn't uncommon at all for people to perform maintenance on their cars or to mend their own clothing. Doing such can save you tens of dollars from hiring a tailor and hundreds of dollars from hiring a mechanic. Circumventing an RE agent could save you many thousands of dollars. Hmmmmmmmmmmm.......
Because in those instances it isn't uncommon at all for people to perform maintenance on their cars or to mend their own clothing. Doing such can save you tens of dollars from hiring a tailor and hundreds of dollars from hiring a mechanic. Circumventing an RE agent could save you many thousands of dollars. Hmmmmmmmmmmm.......
- Steve Smith, "Steve Smith"
- Contributions:122
I think that trying to go it alone is difficult. You are better equipped to either find a better deal on the buying side or reap more in return when selling when using a consumate professional real estate agent. It would be wise to interview local agents and find an agent you trust to do what's best for you.
- Jason Bonas, "Jason Bonas"
- Contributions:214
I apologize for not clarifying that my analogy was not meant to compare being an agent to being a Mechanic, Tailor, Doctor, Or Lawyer
(kinda funny though that it was taken as such and that Mechanic and tailor were not mentioned in the responding comments)
It was meant to be used in order to point out doing something for the sole sake of saving money hence the LOL -laughing out loud ;)
that is why i did not stop at just one but ran down a list of them.
again sorry for the confusion I may have caused I will try to laugh louder in my facetious statements next time :)
by the way good answer Cindy
(kinda funny though that it was taken as such and that Mechanic and tailor were not mentioned in the responding comments)
It was meant to be used in order to point out doing something for the sole sake of saving money hence the LOL -laughing out loud ;)
that is why i did not stop at just one but ran down a list of them.
again sorry for the confusion I may have caused I will try to laugh louder in my facetious statements next time :)
by the way good answer Cindy
- leithreas
- Contributions:8
Jason,
You owe me a new keyboard as I just spat my coffee all over this one!! You, my friend are a funny guy.
One of the signs of the bubble was every Tom, Dick n Harry going online and getting their RE license to cash in on the 'boom'. I can't imagine the same thing happening with people doing 3 week course now to become a doctor so they can treat the swine flu to make $$!!
I wish you well :)
You owe me a new keyboard as I just spat my coffee all over this one!! You, my friend are a funny guy.
One of the signs of the bubble was every Tom, Dick n Harry going online and getting their RE license to cash in on the 'boom'. I can't imagine the same thing happening with people doing 3 week course now to become a doctor so they can treat the swine flu to make $$!!
I wish you well :)
- Cindy LaPeer ABR, e-PRO,SFR, Cdrs, "Houston Metro Pro"
- Contributions:2239
My suggestion was to talk to a few agents to see what they do/can do for you. I think arming yourself with knowledge of how to sell/market a home will make it better for you. Even if you hire an agent, you will feel like you have something to offer. I encourage my clients to be actively involved. Although I'm not a "list and sit" agent, I don't profess to know everything about selling a home and am always willing to learn new things. And if you are going to go agent-free on the buyer's side, then you should get your license. Someone is going to get that commission; it might as well be you.
If you think you can do it better, then by all means, go for it. You won't know until you try.
- Nic Netherton, "Colorado Lender"
- Contributions:7219
You might as well. Start practicing pounding in yard signs and driving around now so you'll have practice!
And Jason, your comparison of realtors to doctors gave me the best laugh of the day. Thanks
And Jason, your comparison of realtors to doctors gave me the best laugh of the day. Thanks
- klarek the realist
- Contributions:7044
I love comparisons about being an agent to that of a doctor or lawyer. I'm sure there are years of school, training, exams, and hundreds of thousands of $$$ in student loan fees to be an agent. It takes as much training as being a lifeguard, but pays a hundred times more per hour. Go figure.
- ndnhat
- Contributions:2
After some searching, I found a couple of discussions:
http://www.zillow.com/advice-thread/why-hire-an-agent-when-you-can-be-one/6529/
http://www.zillow.com/advice-thread/Obtain-Realtor-license-to-sell-own-home/6555/
The consensus from non-agent readers seems to be for it, while RE agents are against it. The main argument from RE agents is that there is a lot of work to do to sell/buy homes and the potential DIY saving is not great if at all. They said to become an agent costs any where from $1000-$3000 after school, exam, license, various memberships... and new agents only get about 1.5% for each transaction from the brokers.
From my perspective, a buyer agent does not do a lot for me, other than providing comps and write up the contract. I like surfing all the websites and driving myself to see homes at my own time anyway.
As a seller agent, I'm not sure what they will do for me other than putting up a sign and submitting to the MLS. Some says that seller agents do a lot of marketing but I can't understand what. Listing on zillow.com and other websites? Doing open houses? Printing flyers? Perhaps someone could clarify.
http://www.zillow.com/advice-thread/why-hire-an-agent-when-you-can-be-one/6529/
http://www.zillow.com/advice-thread/Obtain-Realtor-license-to-sell-own-home/6555/
The consensus from non-agent readers seems to be for it, while RE agents are against it. The main argument from RE agents is that there is a lot of work to do to sell/buy homes and the potential DIY saving is not great if at all. They said to become an agent costs any where from $1000-$3000 after school, exam, license, various memberships... and new agents only get about 1.5% for each transaction from the brokers.
From my perspective, a buyer agent does not do a lot for me, other than providing comps and write up the contract. I like surfing all the websites and driving myself to see homes at my own time anyway.
As a seller agent, I'm not sure what they will do for me other than putting up a sign and submitting to the MLS. Some says that seller agents do a lot of marketing but I can't understand what. Listing on zillow.com and other websites? Doing open houses? Printing flyers? Perhaps someone could clarify.
- Jason Bonas, "Jason Bonas"
- Contributions:214
LOL, sure, and you should be come a doctor to save money on medical bills, a lawyer to save on litigation fees, a mechanic to save on your auto repair bills and a tailor to save money on clothes.
with that said. becoming an agent is a process. It does take time, training and money (may not be much depending on your area but it does require something). So the time you lose and the money you spend would be the same money you assumed you would be saving. Also, depending on the company you work for they may or may not discount selling your own home. Some will allow the transaction of your primary residence for free or at less than standard commission others don't. Then there are all the fees associated with monthly agent operating expenses. Lets estimate your desk fees at $700 a month (I know some are paying more, i know some pay less) so it takes you 3 months to sell the house $2100+ lets say about $3000 in licensing, training, and classes+ MLS fees, Realtor fees + a couple of other misc fees since the average agent pays out of pocket for everything. So about $7000 (could be more or less where you are from) not to mention the time to take the classes and study to pass the state exam (which is not free)
if you are trying to save why not try For Sale By Owner (which may or may not work for you)
as Falsedawn stated you don't need to be an agent to sell your home but, it sure makes it easier (many times)
I don't need to be a mechanic to fix my car but, the time and effort is usually better spent doing what you know how to do and are qualified to do. I am not qualified to swap an engine I can do so in 3 weeks or I could take it to the shop and have them do it in 3 days
with that said. becoming an agent is a process. It does take time, training and money (may not be much depending on your area but it does require something). So the time you lose and the money you spend would be the same money you assumed you would be saving. Also, depending on the company you work for they may or may not discount selling your own home. Some will allow the transaction of your primary residence for free or at less than standard commission others don't. Then there are all the fees associated with monthly agent operating expenses. Lets estimate your desk fees at $700 a month (I know some are paying more, i know some pay less) so it takes you 3 months to sell the house $2100+ lets say about $3000 in licensing, training, and classes+ MLS fees, Realtor fees + a couple of other misc fees since the average agent pays out of pocket for everything. So about $7000 (could be more or less where you are from) not to mention the time to take the classes and study to pass the state exam (which is not free)
if you are trying to save why not try For Sale By Owner (which may or may not work for you)
as Falsedawn stated you don't need to be an agent to sell your home but, it sure makes it easier (many times)
I don't need to be a mechanic to fix my car but, the time and effort is usually better spent doing what you know how to do and are qualified to do. I am not qualified to swap an engine I can do so in 3 weeks or I could take it to the shop and have them do it in 3 days
- Cindy LaPeer ABR, e-PRO,SFR, Cdrs, "Houston Metro Pro"
- Contributions:2239
It will save you money as far as fees. My suggestion is to study up on your local market and ways to market your property. Not all properties sell quickly or easily. A lot of agents have their marketing strategy in place and it costs them a lot less to market a property than it might cost you. You could also interview a few agents to see what they have to offer. That way, you decision will be based upon all the information.
- falsedawn
- Contributions:98
Agents don't have magical powers. You don't need to be a qualified agent to sell your own home, and I'm not even going to open up the whole "buyer agent" can of worms...
Is it worth it to become a real estate agent to save fees
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