Somebody told me that when you try to negotiate, since you have to disclose in advance that you are a agent or broker, the party you are trying to negotiate with automatically puts up a wall. And also, since there are lots of rules & regulations that an agent must follow, there are more chance of being sued or goto jail so have to be more careful.
2007-05-15 15:43:41 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
First where you live has a lot to do with it. Some states have more requirements than others. Yes if I’m licensed in a state and looking to buy property (or sell) I make my license status known in writing at the first possible moment. I make a disclosure that I’m buying the property as an investment and hope to sell it at a profit at some time in the future. [Well duh, everyone buys with the hope of selling it at a profit at sometime in the future - no surprises there.] There is no practical way to tell if that makes a seller harder to deal with or not.
Now if I were going to purchase properties in a new area I would wait to get my license until after I had most of them under contract.
The other side of the coin is the additional data that is available to you through the local MLS as an agent. You can get a lot of the data from the county in most cases, but in many cases the best data available is on the MLS, having direct access to the MLS new listings is an advantage too. Most of the auto prospector programs send out updates once a day usually in the middle of the night. You could check for new listings every late afternoon.
So that’s both sides of the coin. My personal history is that I buy some properties before I get a license in that state. I’m currently licensed in 2 states and I let a license in a third state go inactive this last January. I’ve bought 3 houses in the last 7 months in yet another state that I’ll probably get licensed in somewhere around Sept or Oct this year.
Hope this helps
2007-05-15 16:23:40 · answer #1 · answered by GaryODS 3 · 0⤊ 0⤋
There is much to what you say. However; access to MLS, forms, escrow agents and title company's make being a agent or broker a good thing. I have run into the wall a few times, but if you let them know that you are buying for yourself, the wall usually disapears. Many people liked having a agent in the picture because they want someone to help with paperwork and know that the agent is working under state rules and will generally do a good job.
The real key here is access to Data and not having to pay brokers fees or agent fees, depending on your position. Its great to sit in your own home and be able to look through the lists of available homes on your own computer. This in no way restricts you from looking at bank foreclosure lists and local papers for property's that have not been listed yet. I like to go to county and city auctions of tax properties and while having a license is not a must it does help open More doors than it closes. a big plus for having your own license.
2007-05-15 23:29:34 · answer #2 · answered by Traveler 7 · 0⤊ 0⤋
The part about going to jail is incorrect. If something is illegal, it is illegal whether you are an agent, broker or idiot. You do have to disclose that you are an agent or broker so it may, at times, be more difficult to purchase distressed properties. I would say that this is more than offset by access to MLS and the contacts you make in the industry. Additionally, if you are an agent or broker AND a knowledgeable investor, other investors will trust you and you will make a lot of money that way.
Finally, you can save at least 1 1/2% (listing fee) on each property you sell.
2007-05-15 22:58:33 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Do you know that with all of that rambling you really didn't ask a question, but I think I know what you want. The answer is both yes and no. You have to play both roles. You will find that you actually make more money if you represent your client than if you represent yourself.
If you are on the listing side your client is the seller and it is your job to get the best deal for them. The same is true if you are a buyer/broker, you must represent your client. Your honesty will go a lot farther than any individual sale.
From the phrasing of your question maybe you should ask yourself if you have the integrity to be a good real estate person.
2007-05-15 22:56:48 · answer #4 · answered by ttpawpaw 7 · 1⤊ 0⤋