New agent looking to buy personal residence

4 Replies

Hello everyone,

I just passed my real estate license last week and I'm waiting for the paperwork to clear the California BRE to get setup with a broker.

I am getting married this October and recently moved from Texas to Orange County California. With the housing prices being so high in comparison I decided getting my RE license would be beneficial to be able to find our own place and for investment purposes.

The advise I am seeking is how does applying your RE commission towards the purchase of your personal home work? I spoke with a lender to get a pre-qual letter and she said that I can't use my commission towards the down payment of the house, but I can apply it towards closing costs ...

Is that the norm? Are there other things I can use the commission money towards? Just curious what other agents do. Any insight would be helpful..

Thanks in advance!

Arun Chandra, Real Estate Agent in CA (#01983864)

Yes, that's standard.  But remember it's not Your commission, it's your broker's.  They need to iv permission for you to apply Your portion, as you see fit, if it's not coming through them first. 

@Arun Chandra Welcome to the BP community. Your question is a long way from a proper answer as you would need to know how much of your commission you would retain from the broker you are with. Depending on the price of the home you might be able to use all your portion depending on lender restrictions. 

I would suggest finding a broker close to your home and most important someone who is willing to mentor you if you are going to do this full time. 

Good luck on your searches. 

Thank you guys for the input! 

@Joe Homs I am not planning on selling RE so I would go with a discount brokerage for MLS access. I've heard it'sworth looking into smaller brokerages, unlike ReMax or Century 21, to gain good RE sales experience and keep costs lower.

So if I read your comment correctly @Wayne Brooks  it would be up to the broker & Leander to decide how my commissions should be dispersed?

Arun Chandra, Real Estate Agent in CA (#01983864)

No, just realize you need your broker's okay, which shouldn't be an issue.

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