I qualify, by means of my college degree, to take the Broker's exam. I would like to purchase a home and use any commission toward the down

Asked by Jeff L, Orange County Great Park, Irvine, CA Wed Feb 27, 2013

payment. How expeditiously can this be accomplished? SHOULD I consider moving forward in this manner? Has anyone done this, and how did it work out for you? Thank you in advance for any insight...

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Ingrid Ski R…, Agent, Mission Viejo, CA
Fri Mar 1, 2013
Well the rules and laws have changed since the 2004-2007 rise when lots of people jumped in the real estate market with only taking 1 class and not knowing anything about being an agent or real estate for that matter . You can no longer apply with a college degree.. You can not use your commission for a down payment.. Typical you get paid after the closing of a sale. Not during. You should go and talk with a broker in your area to see what they recommend for you, and if you should decide to become a full time agent.. Good luck..
0 votes
The dre web site indicates a college degree does qualify one to take the exam as long as it was a major or minor in real estate, which mine was. Additionally, the experience requirement indicates working as an appraiser qualifies if two years full time within the past five years, which I have.
Flag Fri Mar 1, 2013
Mack McCoy, Agent, Seattle, WA
Thu Feb 28, 2013
Being a broker doesn't entitle you to a commission, Sgn4u. Only a licensed BROKERAGE may collect a real estate commission, and in most areas, only a member of the local MLS is entitled to share in the brokerage commission.

So, this is how expeditiously you can accomplish this. Pass the broker's exam, open up a brokerage, join the local MLS, and then you can co-broker your own transaction.

Then, you need to qualify for a zero-down loan program, like a VA program, and you can use your commission to compensate the seller to pay for your pre-paids and closing costs.

Maybe. I think that's how you can do it here in Western Washington.

All the best,
0 votes
Jeff L, Home Buyer, Orange County Great Park, Irvine, CA
Wed Feb 27, 2013
Not stated initially...I have a degree in Real Estate and Urban Land Economics, and have been working as a full time appraiser... based on what I have read, I believe I will qualify for the exam. I understand the exam is rigorous, but I have always done well on exams, including the Certified General appraisal exam...

Thanks again!
0 votes
Oh...and I'm in Orange County, not Tujunga.
Flag Wed Feb 27, 2013
Cindy Davis, Agent, San Diego, CA
Wed Feb 27, 2013
My response to you is that it depends on whether or not you're in real estate right now as a Realtor. As a broker, I must tell you that the broker's exam is considerably harder that the Sales exam. I passed the first time but I studied for 8 months!

Even then, just because you have a fresh license doesn't mean you know anything about doing real estate deals. My best advice is if your home is your first deal, then work with another agent and perhaps do a fee split of some kind. I made plenty of mistakes in my first handful of deals....get some guidance....

Good luck!
0 votes
PacWest Prop…, Agent, Orange, CA
Wed Feb 27, 2013
Even though you are quailfied based upon your college degree.. there is a intial up front costs that you are not factoring in on your decision.

Your upfront costs could exceed $1000 (exam prep classes, exam fees, re licensing fees, local realtor board fees, mls fees, lock box access key fees) in addition to the no of months/times it would take to pass the realtor broker test ( must get 80% or higher).

Home prices are increasing at a higher rate (4%) than the dollar savings from commission..

Sales price of a $100,000 home your commission would be 2.5%.. Fha down payment is 3.5%

You are missing a key point... You need to have a current and steady income to qualify for the additional 96.5% to complete the sale.

for any other question call us at 714-771-3800

Scott Fredrickson
PacWest Properties
0 votes
Al Goldberg, Agent, Beverly Hills, CA
Wed Feb 27, 2013
Hi

Are you an attorney because a few years ago attorneys were allowed to take a test without education. There was a huge problem in all these attorneys with real.estate brokers licenses screwing up and so the school requirements were changed.

Also many people let other agents represent them if they have licenses to reduce their liability risk as a broker buyer.

Call me and we can discuss it.

Al Goldberg Broker
800 765 3609
0 votes
Steven Ornel…, Agent, Fremont, CA
Wed Feb 27, 2013
Sgn4u,

Adding to the Blackstone Team comment, as of Jan 1, 2013 there are new requirements to become a Broker, which it sounds like you may not satisfy.

See:
http://www.car.org/newsstand/newsreleases/2012releases/ab1718
http://www.dre.ca.gov/files/pdf/faqs/FAQ_AB1718.pdf

-Steve
0 votes
Rob & Janet…, Agent, Ladera Ranch, CA
Wed Feb 27, 2013
As stated below lenders will not allow the use of your commissions towards down payment. Also getting a brokers license these days isn't as easy anymore due to the new policies in place. Check with the DRE but I believe you would need to show that your college major was in Real Estate or you have the 2 years experience as an active real estate agent. Lastly you would have to be a MLS member in order to receive commissions.
0 votes
John Doyle, Agent, Dana Point, CA
Wed Feb 27, 2013
Better check with the lender first. Most likely, they would rather have you use your commission to lower the purchase price of the house. Down payments usually need to be sourced and seasoned. Having a broker's license is just the beginning, you will also need to be a member of the board to receive any commission.
0 votes
Laura Coffey, Agent, Santa Clarita, CA
Wed Feb 27, 2013
To my knowledge you can not use your commission for the down payment. You can use it for your closing costs if disclosed to the lender. I would check with the state of California to see how fast the are issuing licenses after the broker exam is passed.
0 votes
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