Become a RE agent in Missouri
So I'm looking into getting my real estate agent license, and I have some questions. I don't want to be a realtor, Im just looking to access the MLS and make offers myself without bugging my agent, and save the commission.
are there running costs for being an agent?
Do I have to work for a brokerage?
Does it cost to keep my license?
just not sure what the actual cost is after I get my license and if it would actually be worth it.
are there running costs for being an agent? Yes, they are generally unavoidable and include access to MLS and fees associated with your broker/association.
Do I have to work for a brokerage? You will generally not be able to practice as an agent nor have access to MLS without being associating with a brokerage.
Does it cost to keep my license? Yes, you have fees from the state business department that issues your license and the cost for continuing education.
These fees generally aren't significant and could perhaps make sense for you by saving commission in the long run. There are brokerages out there that are cloud based only like eXp that could be a little more forgiving on your dues.
You will likely need to sign with a brokerage - they should be able to equip you with access to the MLS. After two years you will need to do continuing education which will be an additional cost (price will depend on which company you choose to go with). It sounds like you wouldn't have too many running costs as an agent if you are not looking to market yourself.
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Use something like PropStream as an alternative.
How many properties will you buy and sell a year? Are you going to do that on MLS.
I think MLS is a big time saver for investors, but many other investors swear it off and never want to buy off MLS. To each their own.
If you are like many investors and want to buy 1 a year or so, I'd say don't waste your time getting your license. Just find a great agent to be on your team. Real estate is a team sport. I often find the investors who are trying to save a dime and buy 1 a year and trying to save the commission by getting licensed are their own worst enemies. They just don't do enough to really be in the game and they'd probably do much better by having a team of professionals working for them, vs trying to do everything on their own.
I normally say it probably costs you a minimum of $3000 to be in business as a relator by the time you pay dues, MLS fees, key fees, and all the other fees involved.
Quote from @Justin Hammerle:
are there running costs for being an agent? Yes, they are generally unavoidable and include access to MLS and fees associated with your broker/association.
Do I have to work for a brokerage? You will generally not be able to practice as an agent nor have access to MLS without being associating with a brokerage.
Does it cost to keep my license? Yes, you have fees from the state business department that issues your license and the cost for continuing education.
These fees generally aren't significant and could perhaps make sense for you by saving commission in the long run. There are brokerages out there that are cloud based only like eXp that could be a little more forgiving on your dues.
That was super helpful! Thank you! Not quite sure if I'm gonna go that route, just making sure I have all the info before I jump into it!
Quote from @Jack Mawer:
You will likely need to sign with a brokerage - they should be able to equip you with access to the MLS. After two years you will need to do continuing education which will be an additional cost (price will depend on which company you choose to go with). It sounds like you wouldn't have too many running costs as an agent if you are not looking to market yourself.
Thank you! I figured there would be running costs, and it might not be for a few years until I establish my business before I get it, but thought it might be a good option for the future!
Quote from @Bruce Lynn:
Use something like PropStream as an alternative.
How many properties will you buy and sell a year? Are you going to do that on MLS.
I think MLS is a big time saver for investors, but many other investors swear it off and never want to buy off MLS. To each their own.
If you are like many investors and want to buy 1 a year or so, I'd say don't waste your time getting your license. Just find a great agent to be on your team. Real estate is a team sport. I often find the investors who are trying to save a dime and buy 1 a year and trying to save the commission by getting licensed are their own worst enemies. They just don't do enough to really be in the game and they'd probably do much better by having a team of professionals working for them, vs trying to do everything on their own.
I normally say it probably costs you a minimum of $3000 to be in business as a relator by the time you pay dues, MLS fees, key fees, and all the other fees involved.
Ive heard that it's a good investment, that's why I started looking into it, but I think you're right that I should hold off until I'm doing multiple properties a year! I have a great agent, I just don't want to overwork him! Haha
@Dyami Pike- A lot of these questions regarding cost will depend on your specific brokerage. However, yes you will incur some ongoing costs. If not a monthly office fee then usually annually by your brokerage. You could hypothetically open your own brokerage. However even then you have costs you need to pay to be a member and able to view the MLS. Not to mention obtaining your license will cost you at least a couple hundred dollars.
I personally, do not recommend people to get their license unless they plan on being agents. There is more to doing the deal than just getting to keep the commission. You need to keep in mind that you will need to be doing your own paperwork, learn how to negotiate, ideally you would be a subject matter expert in order to do yourself the biggest favor. Are you able to put the time in to learn these things? If so, then absolutely get your license. If not, then again, I do not think that it is the best use of your time. Put your time towards whatever you are a subject matter expert in, so you can make money to invest. Good luck!
Quote from @Olivia Radziszewski:
@Dyami Pike- A lot of these questions regarding cost will depend on your specific brokerage. However, yes you will incur some ongoing costs. If not a monthly office fee then usually annually by your brokerage. You could hypothetically open your own brokerage. However even then you have costs you need to pay to be a member and able to view the MLS. Not to mention obtaining your license will cost you at least a couple hundred dollars.
I personally, do not recommend people to get their license unless they plan on being agents. There is more to doing the deal than just getting to keep the commission. You need to keep in mind that you will need to be doing your own paperwork, learn how to negotiate, ideally you would be a subject matter expert in order to do yourself the biggest favor. Are you able to put the time in to learn these things? If so, then absolutely get your license. If not, then again, I do not think that it is the best use of your time. Put your time towards whatever you are a subject matter expert in, so you can make money to invest. Good luck!
Thanks Olivia! Just trying to see the recommendations that people have. Itsnnot my area of expertise, but making 100 low-ball offers in a month for wholesale deals isn't always in the real estate agents best interest or time, so just seeing what options I have.
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@Dyami Pike You can make offers without being an agent, if you are the principal. You might just want to take the contracts class for your state, get the basic contracts and docusign or another esign program and pop them out and send them off. Although 100 offers a week is probably not realistic. Typically at least in my market of DFW there are not 100 hours in the right price range in your buy box to make that many offers.
You are right though, no agent will probably do that for you for free. ROI is just too low. Maybe the ROI is even too low for you. I've never seen the shotgun blast approach work on actively marketed homes. Maybe you could do that with off market homes better. Might look at DealMachine and see if their software can help generate some LOI type letters vs actual contracts.
Quote from @Bruce Lynn:
@Dyami Pike You can make offers without being an agent, if you are the principal. You might just want to take the contracts class for your state, get the basic contracts and docusign or another esign program and pop them out and send them off. Although 100 offers a week is probably not realistic. Typically at least in my market of DFW there are not 100 hours in the right price range in your buy box to make that many offers.
You are right though, no agent will probably do that for you for free. ROI is just too low. Maybe the ROI is even too low for you. I've never seen the shotgun blast approach work on actively marketed homes. Maybe you could do that with off market homes better. Might look at DealMachine and see if their software can help generate some LOI type letters vs actual contracts.
The context I heard the 100 offers a month in was for off market houses, it wasnt recommended, I just used that as my "more than a reasonable amount" number. I didn't know that you could make offers without being an agent though, so thank you for that!
and I may look into doing it that way!