How to become a discount agent?

Question

Hi everyone,

I posted a similar thread in the real estate professional group but think I would get a better response here.

I’m first getting started and looking to make my first investment in the near future. I’m doing everything I can to learn about the right way of doing it. I figure that getting my real estate license couldn’t hurt and will help me become more educated.

I was wondering has anyone here become or worked with a discount agent? My area is very expensive and if I could offer a rebate to potential buyers whom are willing to do most of the work on their own, it is a win-win. I also negotiate professionally so I could add value there. Furthermore, a few people in my network only purchase new construction where the sales price is the same regardless if they bring an agent or not.

Would love to hear everyone’s thoughts. Are there any reputable “discount brokers” that I can look into online?

Jeremy

Dan Mackin · Answer

Well, first look at your state guidelines. Here in Colorado even if you consider yourself a discount broker you still need to be full service for your clients.

Charlie MacPherson · Answer

Account Closed  This approach doesn't make sense.  Discount agents represent the seller, not the buyer.

In fact the sales commission for both buyer and seller sides is negotiated at the time that the listing agent takes the listing.  So whether a buyer has an agent or not, the seller will pay the same commission.

A buyer's agent is the buyer's fiduciary.  That means you owe whatever duties are required in your state's laws.  Things like confidentiality, fidelity, honesty, disclosure, etc.  It also means that you have to work in the buyer's best interest - and if your version of being a "discount buyer's agent" means less than full service in that regard, you're probably going to get sued pretty quickly.

You also have to be very careful with how you handle rebates.  It is illegal (I think in all 50 states) for a licensed person to pay an unlicensed person.  You might find yourself on the wrong end of a state investigator's phone call.

Account Closed · Answer

My goal is to do it for side income and use the license to help me in personal investments.

Patrick Soukup · Answer

I'd agree with Dan. That being said, with tools like Zillow etc most buyers come pretty educated in what they want and what they can afford which helps expedite the initial educational steps. Being a buyer's agent does take time, especially in a seller's market that we are in.  AKA multiple offers needed, many showings, drive time, scheduling etc. I wouldn't assume just because you are offering discount, that you will get more clients. First show how you can provide value and then decide if you still want to discount.

Dan Mackin · Answer

My first question would be what is your goal with getting the license? Are you trying to be an actual agent or just doing it for some side income?

How to become a discount agent?

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