Should I Get My License in Order to Avoid a Real Estate Agent Altogether?
August 10th, 2006 (Real Estate)
This question comes up many times from people wanting to get into real estate. There is nothing wrong with getting a license and joining the local Real Estate Board, promoting your own real estate activities, or making your own offers on homes. However, you may want to reflect on some things:
* It takes some studying and effort to get a license, and then, assuming it’s a salesperson’s license, you have to get a broker to take you on. That means that even if you buy a property for yourself and earn a commission, part of it will go to the broker.
* Further, it costs money to join and maintain membership in a local Real Estate Board. You probably will find the costs prohibitive if you only want to find and buy a property every year or two.
* Finally, it can be very difficult to get the best financing when you’re an agent. Lenders simply are always suspicious when an agent buys the property, and they typically want to see that buyer put in some of his or her own cash.