I'm looking to buy a house. I know the seller is responsible for realtor's fees. I was considering a license to gain the 2-2.5% in fees. Is that possible, or am I just dreaming?
2007-01-30 15:20:11 · 5 answers · asked by pete_rn 3 in Business & Finance ➔ Renting & Real Estate
Obtaining a real estate license requires two things: time and money. By the time you take the necessary courses, tests, pay the required fees, associate with a broker, and split your commission from the house purchase - you'll likely net a loss. For one transaction it doesn't make financial sense to do it.
Investors on the other hand, who intend to do many transactions or simply want to be more knowledgeable about real estate in general, often obtain a real estate license or at least do the course work even if they don't affiliate with a broker.
Getting a license is more than just showing up and being able to fog a mirror. I'd carefully weigh the costs and benefits before doing it for the sake of a single property purchase.
2007-01-30 17:39:34 · answer #1 · answered by njc_flhtc 4 · 2⤊ 0⤋
Although you did not phrase the question properly, I think I understand what you are asking. Yes, you can get a real estate sales license (NOT a realtor's license - Realtor is a registered trademark and you must join the association to be able to use the term). If you do get a license and become associated with a broker, you will get a commission (usually 40 - 60 % of the 2.5 %) from any property that you purchase. Of course, to maintain that license, you will pay for the necessary education and training, and the license fee charged by the state, and the dues for the National Association of Realtors and the state association and the local association, and any MLS fees. And, most important, once you are licensed, you are required to strictly follow the laws and ethics of the profession which, in your situation, would mean not taking advantage of any seller when negotiating the terms of the purchase. And, if the seller comes back in a year or two with the claim that you did take advantage, you will then pay your attorney (hopefully a good one). So, before you make a mistake, think it over very carefully.
2007-01-31 00:08:49 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Anything is possible!..IF you are the buyer you can consider it a savings when you get your commission check after the closing..That can be your savings..But you need to consider if it will "actually" be worth it in the long run..Getting your license takes time and is not as "cheap and easy" as you may think!..Then when you first start out there will be additional fees involved and the broker will probably take 40-50% of your commission from the transaction plus around here we also have a "transaction fee" so we don't make as much as everyone thinks in our pocket by the time everyone else gets their share...ss
2007-01-31 13:04:07 · answer #3 · answered by Littlebit 6 · 0⤊ 0⤋
Realtor's fees are paid by the seller. Of course it does add to the cost of the house. Just offer a lower price by 3% and see if they take the offer. Depending on what market you're in now might be a good time to use that strategy.
2007-01-30 23:32:13 · answer #4 · answered by nickscalero 2 · 0⤊ 0⤋
A license would make you a salesperson working under the aegis of a licensed broker. That fee goes to him and your commission off the sale is derived from his commission. Unless you enter an arangement with him before the sale, which I can tell you is unlikely, you are still beholden to the same fee and commission structures in place for any other proeprty, even if it's intended for your use.
2007-01-30 23:27:57 · answer #5 · answered by douglas l 5 · 1⤊ 0⤋