patrick.net

just ask around. plenty of people have friends who have a license.

Test you need to pass to get your RE license is incredibly easy. I personally know a few kids who got theirs right after graduating high school. Studied for a week and passed.

mls access is something you shop around for. it's usually separate for commercial vs residential real estate. commercial is about 1k a year, residential I hear is a lot less.

Plus I don't think the other brokerage is going to give you your 3% buyers agent cut without a full broker on your side of the table somewhere.

Broker's license is a bit more involved than a weekend's studying.

Actually here in CA they've added to the requirements to become a salesperson -- you've got to take X number of classes. The broker's license just adds a few to that so it almost makes sense to skip salesperson and sit for the broker's license.

http://www.dre.ca.gov/exm_sales.html
http://www.dre.ca.gov/exm_broker.html

While some CCs have the salesperson license classes (I took the intro at a CC in 2008) it's a much better use of time to just take the courses online.

Though if you can get a good teacher at CC you'll learn tons more than what just teaching to the test can give you.

ChrisLA says

Test you need to pass to get your RE license is incredibly easy.

It's so easy, even a high school drop out can do it !

If G Bush jr and B Obama can become president anyone can be a Realtor.

Yeah, looked into it more, at least here in TX, it seems you have to be someone's bitch for a couple of years before you get a full broker's license, so you're getting 1.5% (unless you actually work for someone and they give you the 3%).

I found some places that will give you 2 out of the 3% of the buyer's commission, so good enough.

I interesting post... the costs vary from state to state.

> but even that’s like $5k profit, so $25/hour. For total spare time, even that’s not bad!

The knowledge from study would be useful and give other benefits than this one time as well.

We have a broker in our immediate family. The lock box key gets passed from member to member. This business is like a social network. Nobody pays attention to a nobody (He's not in the industry. He has a 9-5 job). Family members still end up having to use an agent that has a large network. Usually members of large brokerages to get some leverage on good deals. Or even the listing agent.

You do not need a license. I call the listing realtor and have them show me the house.
When I purchase, I plan to ask an attorney to sign the contract. However, I have heard that banks
might be uncomfortable seeing anything from an attorney.
Happy Hunting!

riddlethismiss1 says

You do not need a license. I call the listing realtor and have them show me the house.
When I purchase, I plan to ask an attorney to sign the contract. However, I have heard that banks
might be uncomfortable seeing anything from an attorney.
Happy Hunting!

I was told that the way the language is written on the listing agreement is that 6% will go to the listing brokerage. And then it goes on and explains what the 6% is for; which is to give to the buyer's brokerage. No buyer agent = no buyer brokerage. I'm pretty sure that if you use a lawyer, it wouldn't yield any savings to anyone. The listing brokerage just gets double commission. And you'd be out a couple hundred bucks for the lawyer to write an offer for you that may or may not be accepted.

In this case, it may be 3% which is split amongst the listing brokerage and listing agent. And another 3% to the listing broker only since they do not have a buyer agent to disperse to.

I would think the only situation to use an attorney is when you find an FSBO listing.

And you’d be out a couple hundred bucks for the lawyer to write an offer for you that may or may not be accepted.

the way to get your 3% discount is to take it off the top in the offer.

then it becomes a matter between the agent and the seller.

Or you could use Redfin and get a 1.5% refund for free.

Yes you can!

Troy says

And you’d be out a couple hundred bucks for the lawyer to write an offer for you that may or may not be accepted.
the way to get your 3% discount is to take it off the top in the offer.
then it becomes a matter between the agent and the seller.

Based on the contract, I don't see how the seller would win over the agent. The listing shows the selling fee as 6%.

It'd sure be fun to cause commotion between the listing agent and the seller though :)

vain says

Based on the contract

Contracts can be amended.

What about if you are selling? Does it make sense to be your own agent in that case as well?

alraaz says

What about if you are selling? Does it make sense to be your own agent in that case as well?

b-b-b-but, one can fsbo without being an agent and save the commission. If you're buying a place that's listed, it's up to the homeowner to decide what he'll do. If he sells to someone the realtor has connected with, he'll end up paying some type of commission.

This is an interesting thread for me, because I have been thinking about approaching my next house purchase this way -- do my own research, "price in" the 3% difference in the offer, and let the seller/seller's agent duke it out.

http://blog.tophomemortgageloan.com/2009/05/10-steps-to-buying-a-house-without-a-buyers-real-estate-agent/

It sounds good in theory, and so far I can't see how the 3% fee is justified (I'm not sure that a buyers agent in the current market brings much value), but it would be great to hear from people who have actually done it.

-S

elliemae says

alraaz says

What about if you are selling? Does it make sense to be your own agent in that case as well?

b-b-b-but, one can fsbo without being an agent and save the commission. If you’re buying a place that’s listed, it’s up to the homeowner to decide what he’ll do. If he sells to someone the realtor has connected with, he’ll end up paying some type of commission.

As a buyer, I take the attitude that I don't care about the commission, that's the seller's problem (I recognize it pressures them on price - trying to raise it to cover). I just offer what I am willing to pay and let them take the loss if there be any. If redfin happens to be in the market I am shopping in, I would probably use them.

As a seller, I tried a fsbo. It failed for me, I believe because it was a buyer's market and the agents and brokers were actively steering those few buyers away from from all fsbos. Lots of propaganda about fsbos being bad houses, hiding something, i.e. that the "real-tor" is some kind of magical architect-building inspector-real estate lawyer-almighty wizard who will protect you from the bad guys (as opposed to the frickin' sales people they actually are). Sadly, in a small market, the buyers can be effectively cut down to nil or very few by these tactics, or so it seems.

Come to think of it - there's another reason to do away with realtors or move to a non-commission system: prices might be that much lower in general ?

pkowen says

prices might be that much lower in general ?

well, they would be, but real estate agents do provide some useful services for the seller.

And they can potentially save your ass as a buyer, too.

The profession is generally a racket though, and the past 10 years have seen dramatic progress at disintermediating them. I first started using a zillow-like service around 2003 IIRC.

Redfin has cut their listing fee in half:

http://www.redfin.com/sell-a-home/fees-and-commissions

not sure how well that's working in practice.