Having a real estate agent VS being your own real estate agent?

Member since 2024 · 8 posts · 4 votes

As an investor in real estate,
when buying property, is it better to have a real estate agent or better to get your own real estate license and becoming your own real estate agent?
what are the pros and cons?

1 Reply

69 views

Most Popular Reply

Russell BrazilBusiness Member

Moderator

Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes

Quote from @Bruce Woodruff:

And everybody think being a Realtor is easy. IT IS NOT! The good Realtors comprise (IMHO) only about 20-30% of the industry. It is a crazy hard job - to do it right.

Just do it yourself....or as said, just use a buyer's agent. Although that may get messier after July 1st....

You are much more generous than me. Id say the good Realtors comprise 5% or less of the industry.

[email protected]301-893-4635 Podcast Guest on Show #192

District Invest Group545 Reviews

Website View Page

4 Reply

See this reply in the discussion

22 Replies

Jump to latestLatest

Sort by

Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
2y
Unless you are buying and selling a lot of homes, I'd use a good realtor.
1 Reply
Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
2y
Or do neither. Don't use a realtor, just represent yourself.....without a license. It's not necessary.
2 Reply
Joe Norman
Property Manager · Baltimore, MD · Member since 2014 · 1k+ posts · 1k+ votes
2y
As Bruce said, you don't need a license to "represent" yourself, only to represent others in a transaction. Some pros of getting your licenses are access to the MLS and your local Board of Realtors (pros and cons with this too). Cons are the cost involved in (both time and money) and loosing out on having a professional to guide you through the process.
2 Reply
Corby GoadeBusiness Member
Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
2y
Quote from @Amanuel Gebrelibanos:

As an investor in real estate,
when buying property, is it better to have a real estate agent or better to get your own real estate license and becoming your own real estate agent?
what are the pros and cons?

There are only two reasons to get your license:
-Are you doing at least 10 purchases/sales yourself every year?
OR
-Are you going to manage transactions for other people?
If you don't answer one of those questions "yes," you'll lose money by getting a license and trying to manage your own transactions.
People tend to think that all there is to it is filling in the blanks of a contract, but understanding the process and how to negotiate the nuances in your contingencies are where tens of thousands of dollars are lost or won. That doesn't happen if you are doing a couple deals for yourself every year.
2 Reply
John MorganPro Member
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
2y
@Amanuel Gebrelibanos
I just use the listing agents. It’s so much easier and they usually give me good intel about how motivated the sellers is and other info I leverage my offers off of. And I’ve bought 26 homes using listing agents.
2 Reply
Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
2y
And everybody think being a Realtor is easy. IT IS NOT! The good Realtors comprise (IMHO) only about 20-30% of the industry. It is a crazy hard job - to do it right.
Just do it yourself....or as said, just use a buyer's agent. Although that may get messier after July 1st....
2 Reply
Account Closed
Real Estate Agent · Columbia, SC · Member since 2022 · 41 posts · 14 votes
2y
Hello Amanuel,
To answer your question, it honestly depends on your goals. If you prefer to have someone send properties that align with your criteria and handle the transaction for you, then I say just work with a real estate agent. If you want access to the MLS and want to do all of the leg work, then you should become an agent.
I am a real estate agent in the Columbia,SC market, but I actually starting investing 2 years prior first. The benefit of getting my license was of course, getting access to non-public information, but also getting paid on my own deals. On the listing side of things, it could also help you save money (I personally suggest paying yourself on those deals too).
As someone else already mentioned, you don't need a real estate license to invest and many of my clients do it successfully without one. Finding a great agent who understands investing is key in this instance.
1 Reply
Kristie S.
Real Estate Agent · Houston, TX · Member since 2019 · 42 posts · 20 votes
2y
Quote from @Bruce Woodruff:

And everybody think being a Realtor is easy. IT IS NOT! The good Realtors comprise (IMHO) only about 20-30% of the industry. It is a crazy hard job - to do it right.
Just do it yourself....or as said, just use a buyer's agent. Although that may get messier after July 1st....

@Bruce Woodruff I second that - being a Realtor IF you want to do it right is a crazy hard job!! That's why there are so many not great ones out there. No one really knows...
1 Reply
Kristie S.
Real Estate Agent · Houston, TX · Member since 2019 · 42 posts · 20 votes
2y

@Amanuel Gebrelibanos My vote - way too expensive to remain licensed if you only have a couple of deals or don't intend to use your license to work with others...
1 Reply
Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
2y
Quote from @Bruce Woodruff:

And everybody think being a Realtor is easy. IT IS NOT! The good Realtors comprise (IMHO) only about 20-30% of the industry. It is a crazy hard job - to do it right.
Just do it yourself....or as said, just use a buyer's agent. Although that may get messier after July 1st....

You are much more generous than me. Id say the good Realtors comprise 5% or less of the industry.
[email protected]301-893-4635 Podcast Guest on Show #192
District Invest Group545 Reviews
Website View Page
4 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
2y
Quote from @Bruce Woodruff:

And everybody think being a Realtor is easy. IT IS NOT! The good Realtors comprise (IMHO) only about 20-30% of the industry. It is a crazy hard job - to do it right.
Just do it yourself....or as said, just use a buyer's agent. Although that may get messier after July 1st....

its more like 10 to 15%..
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
1 Reply
Corey ConklinPro Member
Investor · Member since 2021 · 129 posts · 209 votes
2y
I got a RE license as I was struggling to find a good agent. I had no intention to ever use it outside of my own business. It's nice to have access to the MLS data and how easy it is to set up a showing of a property that I want to see.
The downside is you will have to pay the broker, MLS, and NAR fees along with continuing education requirements to maintain your license which can sometimes not be worth it.
The biggest perk for me was having people I know come to me to list their house for them but instead I would just offer to buy it and make the process easy for them. I landed a couple of great properties that way. So it could be a great lead gen opportunity.
Starting out it's probably not a bad idea to get a license since it's relatively easy to do and isn't that expensive to maintain. Once you become seasoned you shouldn't need your license to do deals as you should have a good network at that point.
1 Reply
Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
2y
Quote from @Russell Brazil:

Quote from @Bruce Woodruff:

And everybody think being a Realtor is easy. IT IS NOT! The good Realtors comprise (IMHO) only about 20-30% of the industry. It is a crazy hard job - to do it right.
Just do it yourself....or as said, just use a buyer's agent. Although that may get messier after July 1st....

You are much more generous than me. Id say the good Realtors comprise 5% or less of the industry.
@Jay Hinrichs
its more like 10 to 15%..
Yes, guys, I agree, I was trying to be kind to Realtors. :-)
There is such a low bar to entry into the field, and frankly it is an incredibly complex job (once again, to do it right) Heck, I even had a license (in Cali) back in the day. If I could do it......

0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
2y
Quote from @Bruce Woodruff:

Quote from @Russell Brazil:

Quote from @Bruce Woodruff:

And everybody think being a Realtor is easy. IT IS NOT! The good Realtors comprise (IMHO) only about 20-30% of the industry. It is a crazy hard job - to do it right.
Just do it yourself....or as said, just use a buyer's agent. Although that may get messier after July 1st....

You are much more generous than me. Id say the good Realtors comprise 5% or less of the industry.
@Jay Hinrichs
its more like 10 to 15%..
Yes, guys, I agree, I was trying to be kind to Realtors. :-)
There is such a low bar to entry into the field, and frankly it is an incredibly complex job (once again, to do it right) Heck, I even had a license (in Cali) back in the day. If I could do it......

I have owned 3 brokerages and while the test is not super difficult.. Keep in mind many agents probably 50% do not get a license to become full time.. they do it part time or for something to do. I had a retired United Pilot that after 3 months I had to ask him to move on.. He just liked to come in have coffee and chat all day :) He did not need the money since his retirement pay was based on # 1 senority at SFO on the 747.. Great guy loved him we lived at the same Country Club but he was just to disruptive to all the other agents that were not retired .. He needed to go to Starbucks for his Coffee Klach
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
1 Reply
Yanina Panfilenka
Real Estate Agent · Seattle, WA · Member since 2023 · 35 posts · 12 votes
2y
Quote from @Amanuel Gebrelibanos:

As an investor in real estate,
when buying property, is it better to have a real estate agent or better to get your own real estate license and becoming your own real estate agent?
what are the pros and cons?

I was doing a lot of legwork and still paying RE agent for the transactions up until got my own license.
pros:
no commissions in your transactions
easier qualification as real estate professional to offset high W2 of spouse
can get access to any house/ easy logistics
more control in the transaction
MLS access with all the information on tip of your fingers, you can move fast with the deal
license knowledge helps to make better decisions and gives broader understanding of the industry
can legally do property management for others, wholesale (many states now making outlaw to do it without license)

cons:
need to take an exam (it needs preparation and to be good not just barely pass you need to study)
fees you pay along the way (MLS, brokerage(I signed with investor-focused on and have a monthly fee and a transaction rate))
self-management including taxes and fees
need to relicense + paid education

0 Reply
Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
2y
Quote from @Yanina Panfilenka:

Quote from @Amanuel Gebrelibanos:

As an investor in real estate,
when buying property, is it better to have a real estate agent or better to get your own real estate license and becoming your own real estate agent?
what are the pros and cons?

I was doing a lot of legwork and still paying RE agent for the transactions up until got my own license.
pros:
no commissions in your transactions
easier qualification as real estate professional to offset high W2 of spouse
can get access to any house/ easy logistics
more control in the transaction
MLS access with all the information on tip of your fingers, you can move fast with the deal
license knowledge helps to make better decisions and gives broader understanding of the industry
can legally do property management for others, wholesale (many states now making outlaw to do it without license)

cons:
need to take an exam (it needs preparation and to be good not just barely pass you need to study)
fees you pay along the way (MLS, brokerage(I signed with investor-focused on and have a monthly fee and a transaction rate))
self-management including taxes and fees
need to relicense + paid education

Don't forget the biggest con. Liability. A licensee has infinite more liability than a lay person. And if 25% or more of your transactions are your own, immediate family, or corporate entities you control, then you might not be able to get E&O insurance.
I've seen so many ethics and commission complaints where the agent files a claim With their e&o carrier to only have it denied because of that threshold and they're always totally shocked.
[email protected]301-893-4635 Podcast Guest on Show #192
District Invest Group545 Reviews
Website View Page
2 Reply
Adam BartomeoBusiness Member
Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
2y
@Bruce Woodruff @Russell Brazil

Russell is 100% accurate. I have been an investor for about 20 yrs and licensed for over a decade. My experience with interactions in different states tells me that there are about 5% great agents.

@Amanuel Gebrelibanos
If you are going to buy or sell 1 or more houses a year than you should get your license if you want to save money. You will miss out on building relationships with agents that may be able to bring you deals. If you are representing yourself then why would an agent bring you any deals?

[email protected]239-339-3969
Bartomeo Property Management4.7150 Reviews
Website View Page
1 Reply
Jasmine Vida
Investor · Jacksonville, FL · Member since 2019 · 90 posts · 41 votes
2y
Quote from @Bruce Woodruff:

Or do neither. Don't use a realtor, just represent yourself.....without a license. It's not necessary.

If you do this, what happens to the buyers agent commission? Does it get waived or does the sellers agent get it?
0 Reply
Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
2y
Quote from @Jasmine Vida:

Quote from @Bruce Woodruff:

Or do neither. Don't use a realtor, just represent yourself.....without a license. It's not necessary.

If you do this, what happens to the buyers agent commission? Does it get waived or does the sellers agent get it?

Up to both parties....I try to use it to negotiate with the seller. Ask them to take 3% off the listing price. Or let them have it, it will boost your position in the rank of buyers...
It's all just a game, do what is best for you.
0 Reply
Jasmine Vida
Investor · Jacksonville, FL · Member since 2019 · 90 posts · 41 votes
2y
Quote from @Bruce Woodruff:

Quote from @Jasmine Vida:

Quote from @Bruce Woodruff:

Or do neither. Don't use a realtor, just represent yourself.....without a license. It's not necessary.

If you do this, what happens to the buyers agent commission? Does it get waived or does the sellers agent get it?

Up to both parties....I try to use it to negotiate with the seller. Ask them to take 3% off the listing price. Or let them have it, it will boost your position in the rank of buyers...
It's all just a game, do what is best for you.

Thank you for this info! I am also debating on getting my license to buy/sell my own properties, but if you do not need a license to do so I may not. I have pretty much found all my own deals just from searching through Zillow and the negotiations have not been too hard, so if I can save some money on the commissions that seems to be worth it to do the rest of the work by myself.
1 Reply
Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
2y
Quote from @Jasmine Vida:

Quote from @Bruce Woodruff:

Quote from @Jasmine Vida:

Quote from @Bruce Woodruff:

Or do neither. Don't use a realtor, just represent yourself.....without a license. It's not necessary.

If you do this, what happens to the buyers agent commission? Does it get waived or does the sellers agent get it?

Up to both parties....I try to use it to negotiate with the seller. Ask them to take 3% off the listing price. Or let them have it, it will boost your position in the rank of buyers...
It's all just a game, do what is best for you.

Thank you for this info! I am also debating on getting my license to buy/sell my own properties, but if you do not need a license to do so I may not. I have pretty much found all my own deals just from searching through Zillow and the negotiations have not been too hard, so if I can save some money on the commissions that seems to be worth it to do the rest of the work by myself.

Yep....I got my own license in California about 20 yrs ago and it did absolutely zero to help me over not having one. It just costs you money and we're here to make money, right? :-)
1 Reply
Amanuel Gebrelibanos
OP
Member since 2024 · 8 posts · 4 votes
1y
After looking into this, I have found few approaches,
1. If you found the property and have the knowlege of analysis the property and be able to negotatiate yourself, you can negotatiate with an aget/firm to pay you some of the 2.5-3% of the closing agent fee since you have done most of the agent job.
2. Option, since you have completed the agents job yourself, you can represent yourself when closing the deal, and ask the seller to discount 2-3% on the property since you are not using an agent which they would have paid if you do. Usually, they are ok with that.
But if the agent brought to you the property, they definetly deserve to get paid with the full amount of agent fee they get from seller.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.