Home Buying in 92880>Question Details

Jeff, Other/Just Looking in Ontario, CA

Would it be worth it to get a real estate license to buy my own home if I'm looking to by a house in like six months? I know I could pass the

Asked by Jeff, Ontario, CA Mon Oct 5, 2009

test!!

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14
In order to buy or sell a home on your own you need to have a brokers license which is harder that just getting salesperson license. If you just get a Real estate license you need to get signed under a Broker. In order to do that you have to pay for errors and ommissions insurance which is about $500. for the year. Brokers also require you to be a member of the local real estate board which is another $500. There are many issues to know about. If you don't know what you are doing and are not happy with your purchase you have no recourse in sueing the seller because of your lack of knowledge of the liabilities. What is taken on the test is different than understanding the Real estate transaction. Unless you are purchasing several properties equaling about $1,000,000. It doesn't really make sense. Much luck to you.
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1 vote Thank Flag Link Thu Mar 18, 2010
Prove it! I don't think you have it in you.
0 votes Thank Flag Link Mon Sep 15, 2014
Hi Jeff

You should, actually.

Better, yet buy one that is for sale by owner... http://.www.fsbo.com

If you are "all Cash", or have equity go to Foreclosure Court and buy one for 30% less
on Court steps.

really, you can subcribe for 2-3 weeks of pink sheets and find out all the foreclosures..

...then, attend a few court steps auctions....once you have figured it out....start buying..


Good luck.

Ruth
0 votes Thank Flag Link Fri Aug 8, 2014
Lots of anger exhibited in this question and these answers. Jeff, the short answer is no, getting your license just to purchase a home is not a sensible idea. Realtors actually earn the money they make in commissions. It's a great career option if you're planning on staying in full-time. And by full-time, you'll be looking at getting calls/emails at 3 in the morning and spending both Saturday and Sunday showing property.
0 votes Thank Flag Link Fri Aug 8, 2014
You might save a couple of percent, but remember the buyer's agent will still have to be paid. I'm not sure if I'd want my very first transaction to be my own home.
0 votes Thank Flag Link Fri Aug 8, 2014
Yes, a lot of people feel like you do. After all, you are intelligent and don't mind studying for the test. What most people don't know is that Realtors have A LOT of expenses, and getting the license is just the beginning of it. So unless you're ready to make a career of it, save yourself thousands and hire a Realtor (who has already committed to pay all of the crazy expenses related to having a license) to help you. As you can see, there are plenty of licensed professionals ready to help.
Michelle Higbee
Intero Real Estate
714-552-2695
0 votes Thank Flag Link Fri May 17, 2013
Heidi Franklin (909) 772-8842, Agent, Corona, CA

If I were you, I would try to buy the home now because in 6 months, the prices most likely will be much higher than any commission that you will receive. Unless you are planning on becoming an agent, it might not be worth the time, money and hassle to obtain your real estate license just to buy a home. I will be happy to help you. I have over 18 years experience selling homes in the area.

Heidi Franklin
Remax Partners
(909) 772-8842 cell
heidi@heidisellshomes.com
0 votes Thank Flag Link Tue Feb 19, 2013
Based on the hand you're showing, I've got $20 that says you can't pass the test!

If you did, you'd need to take care of these activities and related costs...

1. Study materials
2. Testing Fees
3. Testing time
4. Study time
5. Fingerprinting and background check costs
6. MLS access costs
7. California Association Of Realtors membership (mandatory)
8. National Association Of Realtors membership (ditto)
9. Local Association Of Realtors membership (ditto)
10. Special key to access homes listed on the MLS
11. Fees related to the brokerage you sign up with
12. Association initiation training

and probably another 5 I didn't think of.

I was thinking about getting going to med school so I can take out my own tonsils. What do you think?

You're right... I should just hire a professional and let them take care of the job the right way.
0 votes Thank Flag Link Thu Feb 14, 2013
really, comparing a realtor to a doctor, you have to be kidding me. The days of Realtors ridiculous commissions for a job that doesn't require a degree are coming to an end. With all the online tools available, those of us successful business people buying 1-2M homes can surely find the resources to review the contract for less than 5% of the selling price (yes that's $50,000-$100,000). If realtors had flat fees for services rather than percentages, people wouldn't be looking to perform this transaction themselves.
Flag Thu Jul 24, 2014
and any average bear who just puts in the time to study can pass this test i'm sure... don't believe me? just look at some of the realtors out there like this Dbag who just responded to you.
Flag Wed Sep 11, 2013
Or hire an RE agent to process paper work for 3%? To compare a real estate agent to a medical doctor is one hell of a stretch and a stupid comparison. AND this question wouldn't even be asked if it was a flat fee versus a percentage.
Flag Sun Jun 16, 2013
Are you trying to save the comission if so no worries the seller will pay,if you want to get a real estate licence ,that is a whole different thing but not to buy a home,you should find an agent who you trust and feel comfortable with ,make some phone calls and see how you fee.
Call me ,,HENA MARTIN BROKER 760-251-2868
0 votes Thank Flag Link Thu Jan 24, 2013
I asked a similar question awhile ago. It turns out that to set up the costs involved would not make it worthwhile. Sad isn't it?
0 votes Thank Flag Link Thu Mar 18, 2010
It's unlikely that it would be worth your while. On the other hand if you want to get into the business and have the skills to be effective working with buyers and sellers it could be a bonus.
0 votes Thank Flag Link Thu Mar 18, 2010
Hi Jeff
Depending how much you are buying the property for, you can make from $3,000 to who knows what.
I did the courses in three months and passed the exam the second time. So in total I did it in 5 months. But, it is difficult and need to study as much as possible. I know of ex-coworkers that have been trying complete the cources for 2 years or failed the test 6 times. If you fail, you have to wait for almost a month before you retake it.

Keep us posted on your progress if you decide to join our profession.

Best Regards,

Jes Sierra, B.Sc.
Realtor®
0 votes Thank Flag Link Sat Oct 10, 2009
Dear Jeff:

Passing the test is one thing. The test is largely theoretical and has very little to do with the day-to-day reality of practicing real estate. I'll take you at your word that you can pass the test. But as Patrick said, that's an awful lot of trouble to go through to earn roughly 50% of commission and to practice your way through locating and negotiating for your dream home.

There's also the issue of start-up costs. You have to pay to take your classes and take the test. And passing the test is only the beginning. You still have to pay for fingerprinting with the state.

And, depending on the price range you're buying in, you'd spend a lot of your commission on set-up fees like board membership, MLS membership, lockbox key subscriptions, errors and omissions insurance, equipment insurance, etc.

And finally, there's the issue of liability. Since you'll be brand new, if you mess up the paperwork, or lose your deposit money, or the deal just gets super-hairy ... it's kinda hard to go after yourself. Unless you truly want to learn about and get into the real estate business, I'd suggest you use a knowledgeable Realtor.

Either way, congrats on being close to homeownership and best wishes!

ANGIE
909.248.4224
0 votes Thank Flag Link Sat Oct 10, 2009
What would be the reason for getting your license? Would it be to arm yourself with information on the process of buying a home or is it to save money because you would get paid the commission on the buy side?

Couple of things to consider here. You could self educate yourself on the process without having to take the time and spend the money on classes required to get a license. Will this mean that you will know what you are doing? Maybe, most likely not, but you will have at least have some concept of what is involved.

You will have to spend money on the classes, license fees and sign will a broker since the only way you could get paid is through a licensed broker. And since you would be a new agent you will most likely be at the bottom of the commission scale which in all likelyhood would be a 50/50 split. That's half the commission to you.

So is the time, money and effort involved worth the money that you may save by being licensed. You could just work with an experienced agent and end up with the same results.

By the way don't be too sure about that test. It's harder than a lot of people think. Good Luck
0 votes Thank Flag Link Mon Oct 5, 2009
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