Sales Agent License vs Brokers License: For getting 3% discount?

7 Replies

Hi,

I am interested in buying about 500k worth of real estate, and my father is looking at selling his 1.5m place in California, and relocating to an income-tax free state and buying a home.


I was scared out of real estate sales, due to the fact I would have to become a sales agent (paying my boss to work) instead of being self-employed. 


What state will allow me the quickest access to become a full blown managing broker, or allow me to work for myself and possibly hire a sales agent?

Most states require you hold an active sales license for at least two years before you can upgrade to a Broker license. I don't know of any states that are faster than two years.

I think you're putting the cart before the horse. Without sales experience, how do you know you want to be a Broker or that you'll be successful? Get your license and try it out. Over 80% of agents quit within the first couple years so prove you're capable of making it before breaking out on your own and incurring the costs of working for yourself.

Trust me, you only Think you want to be the broker.....a boat load of regulations, procedures, reporting, document preservation requirements, etc, etc. Get a sales license, let the broker take their 30% or so, you’ll be much happier.

Expect you could find a broker that would take a flat fee per month and per closing file from you, rather than a big chunk percentage, many here in IL, would bet dollars to donuts, even more in CA.    

@Max Spellman

Are you looking to actually work as an agent or just get the license to save money with your family’s transactions? 

Originally posted by @Michael Smoczynski :

@Max Spellman

Are you looking to actually work as an agent or just get the license to save money with your family’s transactions? 

I want get 2-3 family, and 1 personal transactions done in early next year, and 1-2 personal, and possibly more in the future if I enjoyed rental units as an investment .

I have never worked in sales, but it sounds like it can be a good career.

@Max Spellman You can't avoid it in California - you need to have 2 years of full-time licensed salesperson experience to be able to apply for a broker license

For your father's sale, you can just get a flat fee MLS listing to get it on the MLS, which is a much cheaper and less time consuming way to go about it (for example, we do this for $95 in CA).

For the purchasing, you might want to find an investor friendly broker who can rebate a large portion of the commission earned - naturally, in that case, you'd be expected to do much more legwork yourself.

Here's a breakdown of the costs of being licensed in CA, just to give you an idea of what a headache/time sink it is: https://www.biggerpockets.com/blogs/9561/55035-what-are-the-costs-and-steps-to-a-california-real-estate-license

Would a 4 year degree let me avoid the 2 years of experience?

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