I hold an inactive license in NC. I am interested in doing about 1-2 transactions per year, buying or selling my own investment properties. I'd like to use my license for MLS access, to be able to set up showings myself, and to save the commission for myself. Is it even worth it to hang my license for this low number of annual transactions?
The answer is it depends. Are you just an agent? How much does it cost to have an active license where you are? Here it can cost a couple thousand per year. The next thing to consider is what kind of brokerage will you join? Will that brokerage allow you to keep 100%, 50% or somewhere in between? Brokerages often want you to make a certain amount at the 50/50 or whatever they offer before you can keep 100% on personal property.
Yes, first do the math and see how much is cost per year to hang your license, but most likely it will benefit if you use it
@Ross Bernard 1-2 deals per year I would think would produce a return for you. Do the math with the money but also consider the time saved. I use my license for 2 personal deals, 1 to sell my home and another to purchase my current home. The time it saved me on the purchasing end was almost worth the license. I was able to view all properties on mls which was great but the best part was the fact I could go direct to properties without contacting a realtor to show me. My wife and I would browse daily for properties anytime we saw something I contacting listing agent to confirm viewing and went.
Thanks for the responses. I'm thinking it probably won't be worth the time spent/money saved to use the license at this time. I have inactive provisional broker status in NC. MLS/Realtor dues are about $100 a month. I'd have to take at least one education course, I believe, since I got my license over a year ago which from what I remember are around $200. I'd have to pay the brokerage either in a chunk of commission or flat rate. The properties I'd be purchasing would only be in the 100-130K range so the commission would only be about 3-4K. I'm working full time also, not in a real estate related job. Sounds like it would be easier just to let someone else do it. Now when I plan to buy/sell more expensive property like primary residences, I could see it paying off more.
in my mind if your going to do real estate you need and should have the license ... its cost barely anything to keep it maybe 1 to 2k a year.. that's nothing money.. do that two years.. sit for your brokers test .. become your own broker then you only pay your mls and board dues if required... .. I keep my CA active but have not done anything there in a few years.. its worth having for when I need it. plus I don't do anything in Oregon either but I keep it active.. again... worth having.. and cost is so minimal.. and the rewards so high.. can't see leaving home without
Thre are several brokers that charge a minimal fee per transaction. Just reserach the one the works best for you.
I think it's worth it for 1-2 deals per year. One $100K deal would get you worst case about $1500 cash back (assuming 50% split on 3%). That should cover your costs.
Plus the added benefits that you listed such as being able to set up your own showings. I've found buyers agents to be a huge bottleneck, which is one reason I got my license.
If you are going to be doing transactions anyway, you may as well keep your license active. It also means that you are a sole proprieter business owner, which means tax deductions on things you are already doing. Depreciating a vehicle for example. One good commission should cover the annual cost of the license and fees.
How does one find these brokers who charge per transaction fees? Can't seem to find anything with google searches.