REA, Appraiser or Broker license - Pros/Cons - Posted by Scott

Posted by Space Available on October 27, 2003 at 20:41:23:

Only if I’m functioning in the role of an appraiser

REA, Appraiser or Broker license - Pros/Cons - Posted by Scott

Posted by Scott on October 26, 2003 at 20:49:34:

I was thinking of getting my RE Agents license, perhaps even an Appraisers license (mostly to get the basic education). What are the pros/cons.

Besides the obvious con of the additonal expense and time of going thru the 75hr course, is there any advantage of a REA, Appraiser or Broker license.

I mean shoot - it only cost the same as any of the REI courses offered on this site. If you think about it, it may be the only valuable mentoring program out there … lol.

Let me know what you think.

Thanks!

Re: REA, Appraiser or Broker license - Pros/Cons - Posted by jasonrei

Posted by jasonrei on October 27, 2003 at 11:38:15:

I think it can be a good move.

PROS- Basic education. Might pick up a commission here and there. As a realtor- list your own houses on MLS less expensively, access to MLS for comps, access at your convenience, can set your own appts to see homes.

CONS- must use state forms, must disclose you are a licensee from the start, may be held to higher standards. I don’t think any of these things are necessarily bad.

I’ve been in RE for a while, finance and research mostly for the 1st few yrs, now as a rehabber and small-time landlord. I took my state’s required classes for an agt’s license, but I’m waiting to take my state exam. I didn’t learn anything that was useful to me because I already knew the basics. My agt gives me MLS info (I pay him a fee) and lists my houses for a flat fee, so I haven’t been in a big hurry to get my own license. Will probably do so in the next 2-3 mos, though.

Appraisal classes. I don’t know. I can determine most local SFR and 2-4 unit values through experience and comps. Those are properties I buy. I don’t have a clue as to how to value bigger multis, commercial buildings, or commercial land. When it comes time to learn, I MIGHT take appraiser courses.

Re: REA, Appraiser or Broker license - Pros/Cons - Posted by Dimpil

Posted by Dimpil on October 27, 2003 at 04:31:17:

An agent’s license is not going to do you all that good. An appraisers license, you can always find a good appraiser to explain what all that stuff means and a brokers licinese, well if you want to do loans but you can not do your own loans. It takes more then a class to really understand all the ends and outs of loans, appraisals and RE.

Re: REA, Appraiser or Broker license - Pros/Cons - Posted by Space Available

Posted by Space Available on October 26, 2003 at 22:47:47:

Even though I have no intention of doing it for a living, I just completed all the courses, licensing requirements and passed the state exam for becoming a licensed appraiser.

I chose to go this route primarily for MLS access (an appraiser can become an affiliate member of the local real estate board) but also because, as a buyer or seller of real estate, an appraiser doesn’t have to disclose anything whereas a licensed real eatate agent must disclose the fact that they are licensed on all transactions (God forbid they use their ‘superior’ knowledge to take advantage of someone in distress or even motivated - better have a lawyer in the family).

I do feel that the appraisal courses - taken over the summer at the local community college (total cost including books was less than $500) were well worth the time, money and effort and will be extremely useful in evaluating properties. I also feel the appraiser license gives me more credibility in the negotiating process.

One last thing, if you are looking at real estate for ‘job’ income it’s just my opinion but I would wager a small amount that the “average” appraiser has a steadier and higher income than the “average” R. E. agent.

Re: REA, Appraiser or Broker license - Pros/Cons - Posted by Scott

Posted by Scott on October 27, 2003 at 05:26:47:

I figured the actual license part would not have a lot of value in REI, but I was more interested from both a knowledge and confidence perspective.

As I was reading the posts here, I started getting a feeling that having a “RE Agent License” may in fact create some problems for a REI. But again, it was never clearly stated anyway here … I was just reading between the lines.

NJ is a very complicated state, and I want to make sure I don’t screw myself early on trying to be too clever.

Re: REA, Appraiser or Broker license - Pros/Cons - Posted by kgreen

Posted by kgreen on October 27, 2003 at 14:38:33:

Read your USPAP book. You must disclose the fact that you are an appraiser in any real estate transactions that you are involved in.

Re: REA, Appraiser or Broker license - Pros/Cons - Posted by dimpil

Posted by dimpil on October 27, 2003 at 07:45:12:

Well I’d say then take a class but not get the license, and also why not go to some investors meetings if they have them in your area? That may help also.