If I have a real estate license, how exactly can I benefit from that?
I am 24 years old and own 1 house, I am looking to buy more housing in a college town to rent properties and also flip them. Would having a Real Estate License for the state I am in behoove me?
2007-12-26 00:20:10 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
The laws vary from state to state, and for each state there is a different licensing procedure. If you have a real estate license, you can receive a commission when you purchase or sell a piece of real estate, which would, in effect lower the cost of the real estate for you by that commission. In Texas you'd have to share that fee with a Broker that sponsored you, unless you obtained your brokers license also. Real estate fees are generally 6%, shared between the listing and the buying agent, which would mean a 3% savings to you, less whatever you have to pay your brocker.
2007-12-26 00:25:40 · answer #1 · answered by Stacey B 2 · 0⤊ 0⤋
Assuming you actually sign on with a broker (there are brokers that you can just pay a small transaction fee for each property as opposed to a chunk of your commission), there are a couple of advantages.
First, you'll have access to the real MLS, not the watered down versions that the public can see.
Second, you'll probably get access to the lockboxes, meaning you can go look at listed properties any time you want without asking for an appointment.
Third, you should be able to collect the selling agent's commission even if you're the actual buyer, although I have seen it happen where the listing agent will not permit this.
The negatives, as I see them, are that you always have to disclose that you're a licensed agent in everything you do, and that there are some fixed monthly costs. If you're even remotely active in this business, though, the benefits might outweigh the negatives.
2007-12-26 00:28:37 · answer #2 · answered by Venetian Poker 3 · 0⤊ 0⤋
Not necessarily. If you obtain a license and join a real estate agency, you will be able to view listings as soon as they arrive on the market, via the MLS. However, there are costs involved with doing so.
The downside to having a real estate license in this situation is that you are considered a professional in the trade, and in the event of disputes of any sort, you are held to a higher standard since you hold a license in the field of expertise.
2007-12-26 00:40:48 · answer #3 · answered by acermill 7 · 1⤊ 0⤋
As an investor, probably not. But if you intend to become a Realtor and sell other peoples properties, then you need the license.
2007-12-26 00:23:28 · answer #4 · answered by Alterfemego 7 · 1⤊ 0⤋