Becomeing a licensed real estate agent? - Posted by cordero

Posted by eric-fl on June 09, 2000 at 22:35:08:

I am a licensed agent (inactive) in Florida. I’m not sure if I have to disclose if I’m inactive, but I do anyway. It’s not been a problem. I just mention it at some point of the conversation during our “first substantive contact”, like it’s no big deal (because it really isn’t) and move on. Stuff like “Okay, and how did you arrive at that asking price? I’m asking because I’m a licensed agent, and I pulled a few comps in the area, and I just couldn’t see that value being supported.” Sometimes people ask about it, and I tell them I just took the course a few years back, but it’s not my full time job (which is the truth). After that, most people are okay.

Becomeing a licensed real estate agent? - Posted by cordero

Posted by cordero on June 09, 2000 at 19:39:40:

I’ve been studying lots of info here at cre and have worked at finding properties to flip or places FSBO to quickly turn. Now almost 4 months into it I have realized there is a lot more to learn. Many people here and elsewhere have suggested I get licended and start out as a real estate agent. I wasn’t interested at first but now I’m beginning to give it some serious thought. Next week I may go to a career night Caldwell Banker is haveing. So for those of you who have any experience at going that route, please let me know anything that I should know about decideing. I’m currently not employed and have been trying to earn an income as well as build a business without going back to a job. But that might not be possible in the time frame I wanted.

Pros and cons… - Posted by Rob FL

Posted by Rob FL on June 10, 2000 at 20:52:42:

As far as getting licensed, I recommend that you start investing and once you get a few successes under your belt then consider being a licensed agent. If all you want is to get a license just to represent others, go ahead. This will put you in the “S” quadrant as Robert Kiyosaki would call it.

Here are the pros and cons of a license and my opinions about them. Realize that I view this from the status of being a real estate broker and not an agent working under a broker.

Pros:

  1. Unlimited access to the MLS database including for sales, comps, and expireds.

  2. When you buy and sell you only pay 1/2 the commission that everybody else would pay for an MLS property.

  3. You don’t have to drag an agent along with you everytime you want to get inside a property for sale.

  4. Access to all the REALTOR contracts and forms.

  5. Access to the free legal hotline provided to REALTORS.

  6. Group benefits provided through NAR, including health insurance, retirement accounts, etc.

Cons:

  1. REALTOR dues and licensing fees.

  2. Taking initial licensing courses and continuing education.

  3. Regulation by your state lawmakers and licensing board.

  4. Disclosure of the fact that you have a license. This in my opinion is of little consideration, if any. I never orally disclose this info. Here is how I do disclose it. Everytime I sell a property, I simply mention in the MLS listing that “Owner is a licensed real estate broker.” That is it. I don’t make an issue of it at all. Everytime I buy, I use a “buyer’s addendum” to my contract. Buried in the middle of this contract is the statement “Buyer or a principal of Buyer is a licensed real estate broker.” If the seller signs it, then it was disclosed to them. When I rent properties out, I make darn sure they know I am licensed. I do this in an attempt to intimidate them with the fact that I know my stuff and will make their lives utterly miserable if they cross me.

I hope that helps.

Another point of view - Posted by Thom

Posted by Thom on June 10, 2000 at 08:50:11:

I became a RE Agent last year (nov) it was the best thing that I ever did.
In seven months I have helped people buy and sell over 2.6m dollars in RE and have earned $72,800.00 in commissions, it cost me a total of $18,000.00 to run my business. I also have added a four plex with $1,000 mouthly cash flow to my RE holdings, and have purchased one SFH that I am rehabing to retail. (I Should make over $20,000.00 on that.)
I always tell people that I am a agent (required by law) It ads to the trust factor.
Just like in all businesses or professions not all RE agent are smart. Like most sales professions, most RE agents are being used by their companies to get the few sales that they can than the agent is left to fail. (Failure rate in RE = 90% of those that pass the RE test are not in the business one year later. REI failure is probably higher than that. )
The thing you have to know is RE is a business, it’s your business, there are huge advantages (lots here disagree) to becoming a Real Estate Agent. I do not do floor, I do pay monthly fees, cost of being in business. One other thing, you have to shop for the right company, remember you are hiring them, they are not hiring you…

I did that last year… - Posted by soapymac

Posted by soapymac on June 09, 2000 at 21:22:18:

as some people on this board are aware of, because I tried to do business with them by making myself available to them.

While nothing came of it but some good friendships, what I learned about other brokers/agents and their intelligence level about real estate made me wonder why they are in the business. Some of them are dumb from lack of knowledge. Some of them are dumb because they think they have all the knowledge they need. Some are just plain dumb. There are some good ones out there, though. Took me eight months to find one (ONE!!!) that I could work with after I left the field.

Go ahead…take the schooling. The education will stand you well. Just don’t sit for the RE exam. The only positive about having the license is you get the priviledge of paying a monthly fee to access the MLS system. The negative is that, under many states’ laws, that when you enter into a private transaction for your own benefit…you must declare that fact IN YOUR OFFER.

People think they are being taken advantage of when they read that, and may not accept your offer simply because they infer that you have more knowledge then they do and you may be taking advantage of them BECAUSE of your superior knowledge.

Off my soapbox now.

Cordially,

Roy MacLean
"soapymac"

My thoughts exactly. - Posted by TEW, NJ

Posted by TEW, NJ on June 10, 2000 at 08:00:58:

While I’m new at REI, I too thought about becoming and agent, only for the reason of accessing the MLS system. That would be my only advantage. I want to be able to deal with folks one-on-one without having any perceived advantage than the seller. (If only they knew about (CREOline! hehehe).

There are so many ways to make connections with sellers outside of the MLS system, I just don’t think having a licence would benefit me enough to outweigh the advantages of not having one.

How about comps you say? After you work your market for any period of time, you get to know the FMV of properties. If in doubt, take a trip to your county court house and pull a few recent transactions. If nothing else, you should be able to befriend at least one realtor that can provide a couple comps when you need them.

I, like soapymac, thought about taking the RE agents course, but not taking the exam for licensure, just to gain the knowledge and information that agents are taught. This, I think, would be a worth while investment of my time. You learn exactly what all the other agents have been taught, including your State’s RE laws, mortgages, sales techniques, etc. You’ll also know what they are not taught and why they sometimes seems so misinformed.

For me, I don’t ever plan on having a RE agent license and expect to have no set-back in my efforts for not having one.

Good Luck.