@Jay C.
Each state takes a different amount of hours to qualify to sit for the real estate exam and then you have to pass a state board exam. Don't hate your friend that he only needed 40 hours to sit for the exam. That 40 hours just indicates that you understand the principles, the selling, and most important the law portion of Real Estate. Most investor do not know anything about the law or principles of real estate. This is where the professional comes into play. I advice client's on areas that their not aware of.
Most FSBO do not sell. Here's why. I get a listing, it's sent to 4400 agents just in my company alone. Then it's sent to many more in the industry. Then you have broker opens which get's these people to the property to view for their clients. FSBO are hardly seen, like the sign in front of the house, People driving down the street see it. A neighbor had his For Sale By Owner sign up for a year. Guess what it's with a realtor and he approach the agen and another Realtor lives next door. He was thinking like you and he missed buyers from last year because others sold within that time frame.
As far as the FSBO verses the commission. Our properties traditionally sell for more than a FBSO that even with the 6% the person still walks away with more money. Numbers don't lie. See we do this as a profession and pricing homes is a specialty.
I worked with an investor over the weekend and I proved that the home was over priced by having each guest that visited the open house fill out a survey. I suggested that the price drop by 20k both investors talked and listened.
Education in life is the key.
Now Zillow and Trulia - read what the site says, go over to my forum -
http://www.biggerpockets.com/forums/311/topics/148030-you-cant-trust-zillow-and-trulia-for-property-value-estimates?page=1#p987534
Zillow itself suggest:
http://www.zillow.com/zestimate/
We encourage buyers, sellers, and homeowners to supplement Zillow's information by doing other research such as:
- Getting a comparative market analysis (CMA) from a real estate agent
- Getting an appraisal from a professional appraiser
- Visiting the house (whenever possible)
See the problem with platforms like this, it makes everyone thing their the expert.
I guess next, you'll be wanting to get rid of the appraiser.
See technology is good if you understand how to use the information but misleading if you do not.
Getting the license is the beginning for your friend, next you have continued education and gain more experience by working with seasoned agents and the brokers. Any industry that's regulated is done because you have to protect the public.
I'm a professional real estate agent, my duties is to educate people when their being mislead. Knowledge will make anyone a better investor. In addition to being a Realtor, I was a business major in college, so I've been formally trained in the field of business. I'm the son and grandson of business owners. I've owned my own business so I know how to assess a cost and return on investment (ROI). When I worked for a corporation it was a financial company.
Investors, Real Estate Agent, Appraisers, Electrician, Carpenters, Contractors, Landscapers, Title Companies, Real Estate Attorneys are all in the Real Estate Industry and should work together because it's a profitable industry.
Roles:
Investor - you look for properties that you can purchase, change from an eye sore; sell or rent. You want to get for a reasonable price to make maximum profit.
Electrician - fix what an investor can't because they have not been trained.
Carpenter - wood work specialist what an investor may not know how to do
Lawyer - doing title search and filing paperwork
Appraiser - assess what the value of a home may be, again what an investor can't do
Contractor - facilitate the repair or rehab of the property
Real Estate Agent - pricing, listing in the mls, marketing, and selling the property, provide real estate advise, facilitate home inspections, contracts and negotiations, provide fiduciary responsibilities to you.
That means you have an expert who is looking out for your best financial interests, an expert who’s contractually bound to do everything in their power to protect you.
We also stay abreast to ever changing real estate regulations.
Disclosure is another area -
The real estate salesperson’s duty is to make a full disclosure to all parties on any matters that might materially affect the transaction. Yet, a real estate agent should never disclose his client’s confidential information, especially if that information might give the other party an advantage during the transaction.
Financing - we can assist in getting the buyer financing for the purchase.
Searching -
A real estate salesperson working with a buyer searches for property, while the real estate salesperson working for a seller searches for a buyer. A primary duty of a real estate salesperson working for a buyer is to locate an available property that best meets the client’s needs. For the real estate salesperson working for a seller, the task is to find a qualified buyer to purchase the client’s property.
And the most important part the Transaction -
The real estate salesperson’s duty is to help navigate the transaction through the entire escrow process to final close. Much of this duty might simply involve supplying information to the client or answering questions about the process.
We keep up with market data
Good agents are constantly going to classes to gain more knowledge.
Investors can come to sites like Biggerpockets and read books - then jump in. If you pay close attention to all the shows, they have teams within the team they have a preferred agent to get that home sold. Do your research - Scott Yancey - Flipping Vegas - Real Estate Investor - Real Estate Agent/Broker -> read the story
http://www.scottyancey.com/meet-real-estate-guru-s...
So instead of bashing the commission, look at what the results may be and the value of what a good agent does.
For investors that learn from websites like these, you have to develop what guys like Donald Trump learned at the Wharton School of business and Robert
Kowalski has learned.
You have to learn how to evaluate the ROI like should I use marble counter top or hardwood floors for a better result.
I wish you luck on your journey and hopefully you understand if not others may.
