In this wild new world, what are the downsides to becoming an agent for the purposes of buying?
I have bought and sold homes as both the buyer and seller. I have a graduate education with an Economics background and don’t anticipate any challenges with licensure. I’ve also worked as a contract writer and bargainer for many years. My dad is a contractor, and I hold a contractor’s license as well.
I’m at a loss as to why it wouldn’t just be better to get my license for the next house I buy and act as my own agent, considering that now I’m supposed to pay my agent. My past experiences with buyer’s agents haven’t been great—they felt more like paper pushers. For instance, my last agent didn’t check permits for the septic system, and I ended up buying a 4-bedroom house with only 3 legally recognized bedrooms.
I’m a CA broker. In CA, you will need to hang your license under a broker. It’s not that hard to do, but the cost can be significant. However, you’ll likely make that back on your first deal. Plus, you could help friends and maybe make some extra money. Good luck!
Becoming an agent sounds enticing, but remember you’ll have to work under a broker, who will likely take a cut of your commission. It might not be worth it if you’re only buying one property, but if you’re buying and selling regularly or have a good network, it could pay off.
Sounds like you’re well-equipped to get your license. Just remember, being your own agent means handling all the paperwork, negotiations, and potential issues by yourself. You could save money, but it’s a lot of work. Make sure you’re ready for the time commitment.
Even if you only do it once, you’d be paying yourself $300+ an hour. The paperwork is usually boilerplate, negotiations are quick, and any issues fall on the buyer whether or not they have an agent.
Dakota said:
Even if you only do it once, you’d be paying yourself $300+ an hour. The paperwork is usually boilerplate, negotiations are quick, and any issues fall on the buyer whether or not they have an agent.
That’s true, but only as long as everything goes smoothly. If something unexpected comes up, having an experienced agent could be worth it. If you represent yourself, you’re shouldering all the responsibility.
You don’t need a license to represent yourself. You could hire a real estate attorney to draft your offer and purchase documents. Some listing brokers will even write the offer for you using their standard forms.
The downsides are that it’s expensive and you’d be your own least-experienced agent. If you can’t negotiate commission with a seasoned agent, negotiating a deal with the seller might also be difficult.
Getting your license will cost a few thousand dollars, and you’ll still have to learn through experience. If you plan to stay licensed, there are ongoing fees, too.
I wouldn’t recommend it just for one transaction. Maybe if you’re selling as well. The costs and effort might not be worth it unless you plan to stay in the game.