Elison, Home Buyer in Huntington Beach, CA

In extension to Frank's question, if I studied for my own salesperson exam and get a license, then can I represent myself and get the 1/2

Asked by Elison, Huntington Beach, CA Wed Jun 23, 2010

commision? I don't plan to work for any agency or have it as my career, just figured I have time and the will to get a license. I 'm not afraid of the tedious work behind, but is it easy to find those legal document and find template to type them myself? Also, is the salesperson license good enough to represent myself to buy a home? The broker exam is more for working at the higher tier or something? Thanks!

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Hi Elison,

To add to all the time/fees mentioned below, in Orange County both OCAR and PACWEST which are the local boards cost about $750/year to join. This is what you need to have access to the MLS and get a Supra Key which allows you to access any lockbox. Keep in mind that in todays market which is rattled with short sales and bank owned property it is usually not about writing just one offer. I would caution you that while the perception is that we make a lot of money for writing offers, it is much more time consuming that you may otherwise think.
0 votes Thank Flag Link Thu Jul 1, 2010
Elison after going through all the work if you are not going to buy a short sale or lender owned property you would get about 1/4 of the commission. The broker that you would join would get about 50% of the buyer side commission and you would get the other 50%. On short sales and lender owned properties most will not pay a commission to the buyers agent if the agent is a principal to the transaction.
0 votes Thank Flag Link Thu Jun 24, 2010
Elison,

In addition to some great answers below many of the properties on the market today will not pay a commission if a Realtor is purchasing the home.
0 votes Thank Flag Link Wed Jun 23, 2010
Hi Elison,

Sure you can represent yourself if you get a license. But it is a lot more expensive then you may realize. Typically 60 - 80 hours of schooling followed by a state exam ($100 or so), licensing fee (another $100 or so), some states require that you be bonded (cost unknown), obtain and pay for an errors & omissions insurance policy ($300 per year plus per transaction costs), pay the dues to become a member of the local and national association of Realtors, purchase and pay membership fees for the sentrilock or other keycard system used to access homes in your area, attend classes on contract preparation, join, pay for membership, learn how to use and understand the MLS system, negotiate what percentage of your commission will go to your broker on this transaction (typically starting at 50%), pay a percentage of your 1st commission to your mentor....and so on and so on.

This really isn't a dabbling kind of business. And after all that trouble you could really shoot yourself in the foot by overpaying for a home because you aren't an expert in the area. Let's say your were buying a $200,000 house and the co-op commission to the buyer's agent was 3% or $6,000. Give your broker half of that and you are down to $3,000, pay your mentor 25% and you are down to $2,250, deduct your start up costs of about $1,500, and then pay yourself $10 per hour for every our you attended class and so on. Now how much have your "earned"?

I could take classes at H & R Block to do my taxes and really save some money...but I'd prefer to pay an expert who specializes in accounting and current tax rules and regulations. A great buyer's agent who really knows your market and can guide you through from A-Z is FREE to you. Spend your time and money on something that really interests you and have some fun with it!
0 votes Thank Flag Link Wed Jun 23, 2010
In order to represent anyone in a real estate transaction a salesperson must work under a broker. You do not need a license to sell or buy property for yourself. As for the commission you will have to negotiate that with the seller/seller agent. The Broker signs a listing agreement for a predetermined commission and agree to compensate a cooperating Broker a portion of that commission. There is no guarantee you will save the buyer side commission representing yourself, unless you are very familiar with the values. You may only be getting the house for less than asking (if the house is over priced you may still be over paying) and the listing broker keeping the whole commission..
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Wed Jun 23, 2010
I don't know who else's salesperson exam you would study for, but you would have to be a brokerage to qualify for the "co-brokerage" fee, otherwise, the listing brokerage would keep the entire fee.
0 votes Thank Flag Link Wed Jun 23, 2010
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