Obtaining real estate license - broker or salesperson?
Member since 2020 · 1 post · 0 votes
Obtaining real estate license - broker or salesperson?
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Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
6y"I’m located in PA and was wondering if anyone does this and which real estate license you would need obtain in order to be able to do the paperwork side of it for our properties"
In OR, so can only address OR and WA (where I'm licensed). To charge a fee for transacting a property (i.e. make money off the transaction without having an interest in it) you need to be either a licensed RE person or attorney. Unless you are a managing (WA) or principal (OR) broker, you need to park your license under the supervision of them. A principal broker allows you to hang your own license and usually requires time-served as a RE salesperson under a principal.
If you are buying property for yourself, you may (check with PA) not need to be licensed.
However, I STRONGLY urge you to employ a RE professional such as an atty for contract issues. Very cheap insurance.
If you haven't IDed the property or need to figure pricing then I'd call a RE broker. If you're buying, usually they get paid out of a listing agreement or by the seller, so it's a low cost way to get some expertise - I realize RE brokers are all over the place on being able to help.
You are putting a LOT of your own money into a transaction and entering into a legally enforceable written contract that creates obligations on the part of all parties and, in the case of a buyer, may put you in a bad position on a property or with a lender. A HELLUVA lot of stuff can go wrong and you get stuck.
IF THIS IS YOUR FIRST DEAL, GET A RE PROFESSIONAL FROM THE START!!!
4 Replies
- Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes6y
"I’m located in PA and was wondering if anyone does this and which real estate license you would need obtain in order to be able to do the paperwork side of it for our properties"
In OR, so can only address OR and WA (where I'm licensed). To charge a fee for transacting a property (i.e. make money off the transaction without having an interest in it) you need to be either a licensed RE person or attorney. Unless you are a managing (WA) or principal (OR) broker, you need to park your license under the supervision of them. A principal broker allows you to hang your own license and usually requires time-served as a RE salesperson under a principal.
If you are buying property for yourself, you may (check with PA) not need to be licensed.
However, I STRONGLY urge you to employ a RE professional such as an atty for contract issues. Very cheap insurance.
If you haven't IDed the property or need to figure pricing then I'd call a RE broker. If you're buying, usually they get paid out of a listing agreement or by the seller, so it's a low cost way to get some expertise - I realize RE brokers are all over the place on being able to help.
You are putting a LOT of your own money into a transaction and entering into a legally enforceable written contract that creates obligations on the part of all parties and, in the case of a buyer, may put you in a bad position on a property or with a lender. A HELLUVA lot of stuff can go wrong and you get stuck.
IF THIS IS YOUR FIRST DEAL, GET A RE PROFESSIONAL FROM THE START!!!
- 6yCharlie CameronBusiness MemberInvestor · Niceville, FL · Member since 2017 · 451 posts · 366 votes
@Brittany Hershey You'd just need to be a real estate salesperson (code for "agent") and hang your license under a broker. You could hang it with a broker that allows you to do multiple personal transactions a year and keep 100% of commission on your own deals.
Like Steve said, it may make sense to have an experienced, investor-friendly agent walk you though your first deal. I'd recommend you find an agent that's also an investor... most are not.
I used agents for my first deals before I became licensed as well. If you're also asking whether it makes sense to be a licensed investor, the short answer is: it isn't necessary but it can provide a number of advantages for investors.
Best of luck!
- Real Estate Agent · Philadelphia, PA · Member since 2013 · 451 posts · 369 votes6y
You cant just become a broker in PA, you need to have a salesperson license for multiple years first and do a few dozen transactions before you are even allowed to get your brokers license. Additionally, unless you plan to do a substantial number of transactions yourself, or plan to actively use your license to work with clients, the cost/benefit typically isn't there.
Honestly, I think you need to research the business more. As its been posted, agents work for brokers. Its a two level licensure system that I haven't really found replicated elsewhere, unless you count apprenticeships. The licensure course usually covers more of the legal "stuff" and is basically so that you know enough so you are not supposed to the violate Federal and State laws. As far as actually being a real estate agent, that something you need to learn on the job. Depending on many factors, there is about $2k a year roughly in fees / dues just to keep you agent license active (plus 12 hours of CE every two years). That doesn't count any advertising or startup costs (e.g. business cards, signs, etc.).
Yes, many of the REI books / podcasts / infomercials / whatever say to get your license for access (I generally agree). But, from your question you definitely have a bunch more to research. Keep at it. Good luck.
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