Home Buying in Bel Air>Question Details

Betessami, Home Buyer in Los Angeles, CA

I have a real estate license, I don't have it hung with a broker yet, I want to buy a house for myself and

Asked by Betessami, Los Angeles, CA Wed Jul 9, 2008

keep the commission in the escrow towards the down payment. If I find a broker, they would probably want to share the commission with me right? what is a fair percentage for me to get considering I'll be doing everything myself?

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2 votes Thank Flag Link Thu Apr 26, 2012
most nation wide franchised brokers will charge a much higher split for new agents. they usually looks at your previous year income from real estate brokering. if you are spanking new, most of them will only give you a 70% split plus other office fees, some will only give you 60% split. There are a few national franchise that charges only flat fee too, but they still will look at your previous year production. national franchises will usually charge you way more miscellaneous fees.

if you do not plan to do it full time and just want to save some money for your own transaction it would make more sense for you to join a smaller local broker. some of them may have a few franchises locally. For your personal transaction they may not charge any split. and for regular transaction they may give you a 80% split or 100% split and just charge you on a flat fee for each transaction. maybe couple hundreds to $1000. however if you are really new to it and do not know anything about real estate transactions you may have to partner up with an in house more experienced agent to teach you on the first transaction. if you do that then you will split your commission with the trainer after splitting with your company. But after the first transaction your split will go back to the normal 80% or 90%

I have personally worked for Coldwell banker, help U Sell, and local brokers and I have talked to owners of most of these nationwide brokering companies. here are some the differences among these brokers. this is just a general picture of each companies. each franchisees may be managed differently:

Coldwell Banker:
pros:
1. nationwide brand
2. usually has in house mortgage companies
3. does both commercial and residential transactions
4. broker participated advertising

cons:
1. training program is not that great
2. split is low for new agents. maybe 60% or 70% miscellaneous fees is reasonable
3. no sales leads, but you do get floor time to answer phones

Remax:
Pros:
1. nationwide brand
2. good training program
3. flexible agent options: straight commission, flat fee based, desk fee based and more
4. pretty strong in both commercial and residential

Cons:
1. fees are a little on the high end
2. no floor time. no sales leads

Keller Williams:
Pros:
1. probably the best training program in the industry
2. new agent referral split. if you refer new agent in you get split too
3. Pro Christian
4. fee is reasonable

cons
1. franchise location maybe a little less than other national brands.

Help U Sell
Pros:
1. free sales leads
2. easier to get listing because of low brokering commission
3. training program is pretty good

cons:
1. low split and low commission because fee charged is very low.

local mom and pop brokers:
pros:
1. potentially high commission split without regard to your previous income. 80% to 90% or 0% commission plus a set fee
2. very little miscellaneous fees and charges

Cons:
1. no perceived national brand recognition.
2. quality of training is not uniform.
2 votes Thank Flag Link Sat Jul 12, 2008
Keller Williams is "pro-christian"--what does that mean?
Flag Mon Apr 2, 2012
Do you only want to use your license for yourself? This can be complicated. Just to align yourself with a brokerage will require $$. If you only want to do one transaction, in the end it may not save you anything. If you want to develop a serious career, I suggest you talk to KW. The split is 70/30, which is exceptional to still have all the services that they offer - training, mentorship, business development resources, etc. If you only want to do one transaction, you can find some loosey goosey brokerages out there that will take up front fees, may not require participation in REALTOR associations, etc. and they will give you 100% split... all of this can save you a great deal of money, in the short run. Another alternative is to hang your license with a referral company, avoid many of the fees, and "refer" yourself to another agent for a split of their commission. I don't know if any of these things will make sense to complete only 1 transaction. I am not sure why you got your license. To have a career or instead of saving for a downpayment?

In any case... I really have to tell you that you should have an experienced agent helping you, today's market is CRAZY. I know from experience the licensing courses do not teach you about navigating the market or any "how to"s...

But it sounds like you plan to waive this right to keep the commission. It would be like a doctor doing his first surgery on himself without techs, nurses, and other professionals there to help him. The up side? He's not paying anyone else to help him. The down side? He may not survive, and his family could be billed for the use of the surgical room.
2 votes Thank Flag Link Thu Jul 10, 2008
Hi Betessami
Any broker will take a cut. I work for Keller WIlliams and they actually take the minimum amount from all other large brokerage houses. Cuerrently. Keller takes 30% of your commission and leaves the 70 to you. Most other brokerages I have worked with in the past take 40-70 percent for the brokerage.
I would be happy to give you more info if you shoot me an email.
Good Luck
Lou
LA Real Estate Group
Info@myLARealEstateGroup.com
http://www.myLARealEstateGroup.com
1 vote Thank Flag Link Sun Jul 13, 2008
Abraham Lincoln said: “a Lawyer who represents himself has a fool for a client.” If you really want to save money on your purchase—find an honest broker to represent you—call me, I am a honest Broker and can help you.

But if you insist on represent yourself—buy a For Sale By Owner—just be careful, a lot of people have gotten into trouble because the don’t know all the real estate laws and disclosures—the Laws were written to protect the consumer—like you. Just because someone has taken a class and passed a State exam does not mean they know the intricacies of a real estate transaction.





For a free list of Bank Owned and Government Owned Properties
visit my website: http://www.ReoLicensedSpecialist.com
1 vote Thank Flag Link Thu Jul 10, 2008
Most Brokers will require you to join the board of Realtors and the MLS in order to be active with them (Average $1,500 annually) including the split to your broker which is 60/40 on average. Unless you are producing alot of sales annually for the brokerage, they are not reluctant to cut you a better commission split on your own purchase as they are still taking on the same liability.

You might want to consider a real estate referral company to place your license temporary for the sale of your property. In this type of company you pay nothing to the board or the MLS, you will be referred to a buyers agent who will handle the entire sale and pay back a "referral fee" typically 25% of the total commission.

If your license is in Florida take a look at http://www.ParkPlaceNetwork.com. This company pays back top dollar on referral fees to their agents.
0 votes Thank Flag Link Tue Jan 21, 2014
Most Broker require you to join the Board of Realtors and the MLS as if you are not they will be fined. Your best bet is to join a real estate referral and license holding company. You do not have to join the Board as they are not affiliated with any.

If you license is in Florida, take a look at http://www.ParkPlaceNetwork.com they pay back top dollar on referrals. Good Luck!
0 votes Thank Flag Link Tue Oct 8, 2013
First of all, how can you use the commission for a down payment if you don't earn it until after the transaction has closed escrow? They don't pay commissions prior to closing escrow. As far as looking for a fair commission, why don't you go with 100% commission, like with Sergey, below. Give him a call, what do you have to lose?
0 votes Thank Flag Link Tue May 21, 2013
Hi Betessami,
Having your license hung with the right brokers office is and important financial decision. Many firms have different levels of percentages and most base such percentages on your level of experience and how much broker support actually will need before, during, and after your transactions.
Assuming you have some closed transactions some fair percentages would be 80%-100% you can keep all of your commission and the per transaction fee is $495-$895.

Here at my broker's full service firm we have bother structures available for you to choose from. We offer full office support usage in Orange county or Los Angeles county anytime to meet with clients and you can also work from home. Broker support is anytime via a phone call or email and everything can be done electronically nowadays so a real estate transaction gets simplified. Please call us if you need a Broker's firm to hang your license and start keeping all of your commission.

Alex Dao - Premiere California Realty
http://www.premiercarealty.com
Office: 949-852-4460
Toll Free: 866-923-2568
0 votes Thank Flag Link Fri Dec 14, 2012
I can work something out with you.

Call me tomorrow at 415-683-6950

Fred
Web Reference: http://fredglick.com
0 votes Thank Flag Link Tue Oct 2, 2012
you guys do realize this question was asked in july of 2008...right?
0 votes Thank Flag Link Tue Oct 2, 2012
Hi-
you don't need to join KW or any other national chain to buy a house for yourself only-
I own a real estate firm in Los Angeles-
I have 18 years of experience as a broker -there are a couple of agents in my office that hang their lic with my company and they mainly purchase properties for themselves-
I would be happy to help you -any which way I can-
Please give me a call so I can figure out a fair commission split for you depending on the transaction complexity and your needs-

Nadia Fahimian
Zara Equity Corporation
424- 777- 9040
310-922-2935 Cel
0 votes • Reply • Flag • Link • Thu Apr 26, 2012
0 votes Thank Flag Link Tue Oct 2, 2012
Hi Betessami,
Why don't you hang your licensed with someone like SERGEY FEDNOV? He answered your question. Do you know of a better way to keep your commission, than to keep 100%. Why not give him a call? Please let us know what you decided to do, and why? Thank you.
0 votes Thank Flag Link Tue Oct 2, 2012
If you 're looking to simply save money on this one deal, hang your license with a 100% brokerage. You will most likely get no help from them and beware if you need legal help. Otherwise, choose an agent you want to work with and offer a referral split. You'll keep some, the agent is happy, and you'll be protected.
0 votes Thank Flag Link Thu Sep 27, 2012
If you did not ever work as a real estate agent, you need to find a good Broker who will help you through out the process, and pay him whatever he/she wants. You can not do everything yourself, like you said. You need a good broker to hold your hand and do everything with you especially that you are buying for yourself. Consider this transaction is a field training for you real estate career, and a good start. Good Luck.
0 votes Thank Flag Link Wed Sep 26, 2012
Hi-
you don't need to join KW or any other national chain to buy a house for yourself only-
I own a real estate firm in Los Angeles-
I have 18 years of experience as a broker -there are a couple of agents in my office that hang their lic with my company and they mainly purchase properties for themselves-
I would be happy to help you -any which way I can-
Please give me a call so I can figure out a fair commission split for you depending on the transaction complexity and your needs-

Nadia Fahimian
Zara Equity Corporation
424- 777- 9040
310-922-2935 Cel
0 votes Thank Flag Link Thu Apr 26, 2012
Now that you are licensed, you are in a position legally that you abide by the law and do the transaction with your license hung with a broker for the transaction. If you were your own BROKER, then this is not mandatory but it would be a good idea as you are not so experienced.The best locations to do this is a company like Remax or even better Keller Williams where they will be more fare to you financially since it is your personal home rather than a Coldwell Banker.
0 votes Thank Flag Link Sun Apr 1, 2012
it is much more than a commission.....how about a risk you are taking?
If you need a broker, I assume: you are not a lawyer?

In that case, having someone with experience and knowledge ~ backing you up, can save you a lot of money and nerves!

If you are willing to take the risk.......well, there are plenty online companies who offer just a flat very small fee to 'hung' your license.....

p.s. years ago, before i became a full time realtor, i thought the same: what is special and/or difficult about selling houses? Why they charged so much? Anyone can do it!.....
Now, i don't think so any more!, experienced RE agent is a good investment!
0 votes Thank Flag Link Sat Mar 31, 2012
Bestesami,

First step is to find a brokerage. Unless, CA law is different you will not be able to complete a transaction as an agent unless you are under a brokerage. I suggest you look at least four from a big agency to small one. Try Exit office. Once you join a firm and give the referral I am confident that person will return the favor.
0 votes Thank Flag Link Sat Mar 31, 2012
So, Betessami,

What happened?
0 votes Thank Flag Link Sat Mar 31, 2012
You can no keep a commission to yourself because you need to have a broker, you also can negociated to give you a great split because is for buying your house but of course is up to him
0 votes Thank Flag Link Sat Mar 31, 2012
10% - 20% of the gross commission. Frankly it would depend on how involved you need the Broker to be. You will likely need access to the MLS, a lockbox key, forms for the transaction, and most of all wisdom and guidance.

I'm an independent broker and happy to help you achieve your goal.
Web Reference: http://samguillen.com/
0 votes Thank Flag Link Wed May 12, 2010
If you are a real estate agent in Ontario Canada, you can join a Brokerage with a high commission split to you when you buy and sell your own real estate. In fact, this particular Brokerage is not a member of any real estate board and so the savings are passed down to you. In addition there are no desk fees, franchise fees, monthly fees etc etc. This Brokerage provides a service to Ontario agents who seek to cut off most all operating expenses. Your license is still in force and you can buy and sell all you want except you will not have the services of the MLS system. Park your real estate license is their specialty. If you search the keywords, "park real estate license" you will see their sites everywhere. Hope this helps.
0 votes Thank Flag Link Sun May 9, 2010
In order for you to get or keep any commission your license will have to be active, so yes it needs to be hung with a broker. be careful as teh brokers who offer the largest split will charge you back holding fees, desk fees or what ever they may want to say it is. Most any broker will offer you 50/50 and some may go 60/40 or better if you tell them up front what your goals are. you are bringing something to them so you should have some sort of say, talk to a couple of them so you dont get taken advantage of, goo dluck with your purchase.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Wed Sep 10, 2008
1%-2%
Click here for a Broker
http://www.HomebuyersHope.com
0 votes Thank Flag Link Wed Sep 10, 2008
The first thing to do is determine where you want to hang your license. Then if the broker accepts you into their office, you must decide and sign a contract with that office. I have never heard of keeping escrow toward a down payment, how are you going to close?? You don't get paid till the contract closes. I wouldn't try to do this as your first transaction- Why do something like this before you even get your feet wet. - You need to listen and learn-
0 votes Thank Flag Link Sat Jul 12, 2008
It is highly unlikely that a lender will allow "commission left in escrow" to be used towards a down payment for your purchase so, if you have the financial wherewithal to come up with said down payment and then pay yourself back with the "earned commission", you are more likely to achieve your goal...re: reasonable split, if a good agent who would agree to do this transaction with you, they'd probably be willing to provide you a referral fee between 20% and 30% of their gross commission.
Web Reference: http://www.SFluxuryhome.com
0 votes Thank Flag Link Sat Jul 12, 2008
You found the house; you're licensed- call around and ask if a broker is interested in a split equitable to YOU. It's not rocket science, nor is it potential financial disaster for a broker (with O&E paid- make sure the broker provides that, or advises you to obtain your own, and get it).
If you can facilitate the transaction with efficiency (and speed), take the best split, and add an attorney review.
Best to you.
Web Reference: http://optionsrealty.com
0 votes Thank Flag Link Thu Jul 10, 2008
Hi Betessami,
I am not too familiar with CA real estate law any longer (left in 2001), but more than likely you will not be able to do what are wanting to do without hanging your license with a Broker, unsure if the lender would allow this either. Best of luck.
Web Reference: http://www.torilawson.com
0 votes Thank Flag Link Thu Jul 10, 2008
in most states, in order for you to get a commission, you have to work under a broker. Unless you do that, you wont get a commission anyway....also, the commission is paid AFTER you purchase your home, there for that would not be considered income
0 votes Thank Flag Link Thu Jul 10, 2008
To be honest with you most lender's will not allow you to use commission that you will make on a transaction for your purchase right at that time. Lending has gotten really difficult and they have cracked down on that. Also if you only have a sales persons license you have to have it hung with a broker in order for you to even be paid commission.
0 votes Thank Flag Link Thu Jul 10, 2008
you don't mention why your license is inactive, but if you have recent experience you will easily be able to find a broker who will put you onso you can capture a commission.

the escrow will have to issue commissions, you cannot use future income (a commission) to qualify for a loan today.

if you don't have recent experience you won't be doing everything yourself...there is a file to be managed...the sponsoring broker will want a bigger piece of the action as he or she will be doing the work to keep the deal compliant.

you only have to disclose your licensed status, active or not, if you are working for a commission.
0 votes Thank Flag Link Thu Jul 10, 2008
I see that you have asked this question two different ways but the answer is the same. You can not receive commission on a property you are personally purchasing. The lenders will not allow it now more then ever. You can ask the seller for buyers credit for closing cost but it is now only 1.5 to 2 %.
Also if your license is not hung with a broker it is not a valid license. You can act as a buyer representing him self but you are not an agent. You will also have to disclose that you have taken and passed the Real Estate test in California but have not hung your License with a broker. As far as shearing the commission. That has nothing to do with sharing that is asking for a kick back. You are asking the agent to rick there license and brake the law. Having taken the test you should know this...
Web Reference: http://www.janicetully.com
0 votes Thank Flag Link Thu Jul 10, 2008
All the points made are very important and should be considered. Experience is key. Having said that, you do not need to hang your license anywhere to act as your own agent. Just like any buyer can represent themselves in their own transaction. You will likely have to negotiate the terms of the agreement and will not be able to apply a commission to the transaction. Most lenders don't allow this, but will allow a credit from the seller, usually up to 3%.

Good luck,

Ray
Web Reference: http://www.charityar.com
0 votes Thank Flag Link Thu Jul 10, 2008
Yes, your broker will want part of your commission if you are working out of their office. There are some brokerages that have a better split then others. The best splits go to the most experienced agents.
0 votes Thank Flag Link Thu Jul 10, 2008
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