Why would I NOT become a Realtor?

Question

Tony Fulco · Answer

Afraid I disagree with some of my fellow-members.  I have been investing for a while and was very underwhelmed with the agents I worked with.  YES-they can set you up with auto-email, but at the end of the day, they are never going to be as motivated as you and submitting offers is not going to happen EXACTLY when you want it to.

Since getting my license, my investing success has been through the roof.  The first of my own flips that I sold on my own saved me TWO YEARS worth of realtor fees.  I put in offers in the middle of the night, if it suits me.  The other benefit I did not expect is the depth of education you gain from your broker and people that have been in that business for years.  My negotiating skills are much better now that I understand motivations, bank-owned property sales cycles, etc.  Also, I have made a number of unexpected commissions by representing friends and family in real estate.

I DO NOT take the duties of an agent lightly, though.  Remember you can be sued for a myriad of things and there are a lot of responsibilities.  Just buddy up with your broker and let them lead you the right way.

For me, it was a GREAT move, but I take real estate very seriously.  If you are the same, get that license!  Good luck.

Aaron Lovett · Answer

If you want to get your license, go for it.  Depending on how substantial your purchase is, you might do better than break even, that just depends on the cost of getting your license and maintaining it until you purchase the property.  On the other hand, for one property, it's probably not worth the hassle or the money.

If you are only using Zillow, that's a sure way to lose out.  Zillow is a product to attract real estate agents' marketing dollars, not a replacement for up-to-date real estate market information.

Why not just use an agent?  I e-mail folks hourly automatic MLS updates according to parameters we've worked out.  They see properties as soon as they come to market, same as I do, and we can present an offer immediately.

Kyle Southard · Answer

For what it's worth: I got a house under contract last week in the Springs, and it was 100% thanks to a good Realtor. Literally couldn't have done it without him, and learned the value in a good buying (and surely listing) agent in the process.  Would be happy to share what I learned if anyone's looking to move to the Springs!

Bill S. · Answer

@Kyle Southard so one thing I failed to mention. One reason to have a license is to jump on deals in a hot market. If you are shopping on the MLS and you see a deal you make a call, set the showing and go see the property (in most case faster than you would get a call back from a responsive agent). See what kind of service you get after you drag them to 20 properties with no sale. Also, if you are using an agent you have to wait for them to drop everything and show you the property. Sometimes that's the difference between getting the contract and not. I have a license and would recommend it if you are a serious investor. There are lots of hoops like hanging it with a broker and continuing education but for me it's great. In expensive markets it's much easier to cover the costs since the commissions are higher. You asked why NOT to get it and I told you. As @Tony Fulco pointed out, there are lots of reason to get it.

Teddy Smith · Answer

There are ALOT of expenses that come with being an agent. It's a business and if you treat it like a hobby you will go broke quick. If you aren't doing at least a deal a month, just hire someone else.

Bill S. · Answer

@Kyle Southard so based on your post you may be missing a bit of knowledge. If you hire an agent (sign an agreement to work with them) they can set you up to get email alerts as soon as a new listing hits the market. The tough part is figuring out what you want. Once you drill down on that, any agent can set up these parameters and you have the experience of an agent on your side.

Like others have said if you want to be an agent then go for it. It's just not required to get a peak under the hood nor to be the first to know about property.

Russell Brazil · Answer

If you are talking about 1 transaction...you probably won't save money. Costs with being an agent...prelicensing class, licensing fee, assosciation fees, errors and omission insurance, general business liability insurance, ce credits, mls fees, electronic lock box fees. It's thousands of dollars per year just to get and maintain your license.

Plus you still won't know how to properly put together the offer just because you have a license. In a hot market it's important to not only know how to operate, but to have the relationships with other agents to get your offer accepted. When Listing Agent A gets an offer from you and Agent B who they have done 4 transactions with....who do you think is going to get the deal?

Jay Hinrichs · Answer

time and expense of getting license.. if you get it then use it.. served me well all these years

Thomas Landis · Answer

Awesome! We have a a good mix of pros and newbies and each meeting provides a lot of value. See you soon.

Why would I NOT become a Realtor?

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