Being a realtor for own property

6 Replies

Hello

What is your advice on being a realtor to own property ? As a real estate investor could be dealing with multiple sale transactions over time, having a real estate agent license could save the 3% of sale every time, however, i read that the seller being the agent could be a red flag for the buyer. 

What are your thoughts ?

TIA

I would like to know this as well. That's my initial goal when I decided to earn my real estate license, to save on fees on my own future transactions (buy/sell).

As far as I know, as long as you disclose to the buyer that you're the agent, there should be no issue there.

This is a well discussed topic on the forums but from my personal experience, having my license had been very useful as an investor and for more than just commissions. Mailing expired listings, the ability to pull comps and have access to any listed property are all useful.

However, you are held to a higher standard and have to disclose everything. It's also costly to maintain your license and pay mls dues. It's been about $1500-2k/ yr for me so make sure you are using it.

Hope this helps

I am a Realtor and investor....and I do not think it would be worth the cost, effort, and time to have my license just to save on commission. One thing to consider is most E&O insurance policies do not cover you if you are a principle to the transaction. I dont think that is a big deal, but other agents do.

I am realtor in Calgary and to my understanding there is no issue with selling your own properties . I have one listed right now only thing I had to do was indicate in the private remark 'agent has interest in the property' . With that being said I am not sure what the rules are in other provinces or in the US.

It depends on how many transactions you will be doing. In my neck of the woods, the cost of maintaining a license averages $2,000 a year without any marketing, web site, etc. If you are spending more than that every year in commissions, it might be worth it to get your license. But if you are only buying/selling every two years and it's costing you $3,000 in commissions, it may not be worth it to go through the effort and expense of a license.

There are other advantages! First, you will have access to the multiple listing service and can see properties as soon as they are listed. You can also network with other REALTORS to drum up deals. Secondly, you can help others buy/sell investment properties when you aren't in the market. I just found a good deal two months ago, handed it to another agent and earned $5,000 for the referral! Third, you may enjoy it so much that you give up your regular job and go into real estate full time.

You'll have to hang your license with a broker. Many brokers do not allow their agents to buy and sell their own properties due to a perceived conflict of interest. They'll require you to turn the transaction over to another agent in the firm.

Most brokers will also not allow you to shave your 3% commission off the deal. They're going to want their cut.