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I am pricing out whether or not I should get my Realtor's license.
We are going to be buying property for investment purposes. I have found what classes, licensing, renewals...cost. What I can't figure out is about broker fees. Is there a broker service that you can just pay a flat fee to for holding your license? I'm sure that I'm not the only person who is interested in doing this for private reason and is not going into "business".
Or if not a flat fee, an agency that won't charge me 75% since I'll be a beginner with continuing low sales?
My husband works odd hours and is obsessive when it comes to purchasing. For instance when we bought our current home we looked at houses every single weekend plus 2-3 days a week for a whole year. Not to mention all of the emails he sent our Realtor and last minute changes. So basically I know we are nightmare clients. I almost think I should get my license just so that we would even have a Realtor. lol
There is no such thing as a Realtors license. You get a license from your state, and then join a brokerage and the association of Realtors (national, state, local.)
As a new licensee not knowing what you are doing, you will have to make arrangements with a brokerage to assist and guide you along the way.
And because you acknowledge that you are nightmares to work with, expect to give up 50% of your earnings.
I apologize for using the wrong terminology. I was just using common vernacular. If you had read my entire post you would see that I do know that I need a broker. The thrust of the post was asking if there was someone who operated as a flat fee broker or what other types of brokers would be my better option, since I will only have myself as a client.
I know enough to know that different brokers charge different fees. I just don't know the best way to narrow down my options and exactly what my options are.
I feel like you are being difficult on purpose. Have you or have you not heard of a brokerage that charges a flat fee? Who would be more accommodating to my type of situation? A national chain, a small brokerage or an individual broker?
If you don't know it's ok to say you don't know. Or just not reply rather then be so obtuse and argumentative. I was simply asking a question. Which in 2 replies you still have not addressed. As I stated I'm looking into it. I'm doing my due diligence. I feel like your replies are snide and unnecessarily condescending. Have you never had a business idea and researched it?
I have 20 years of sales experience and 5 years of experience owning and managing a rental property. Since I have never had a real Estate license or had to deal with brokers I am going to sites where I can glean more information. I will also be speaking to Realtors and a broker I know for there input.
Once again if you don't have information that is relevant to my question, its ok. Just don't reply.
I'm with a Re/Max franchise. They charge me $235/month, no matter how many transactions I complete, plus a 5% commission on each closed deal. I would imagine that's as close to a flat-fee brokerage as you're going to find but I don't know all the specifics of every company.
It's certainly possible in Florida and probably other states as well. There are at least three local independent brokerage firms I know of who charge a monthly fee between $35-$100 plus a fee on each transaction between $250-$500. At least one of them has a maximum yearly amount collected from each agent. Additionally, you would need to ask about errors and omissions insurance. Since you're getting your license for your own investment purposes, I think this is a good option for you provided you can find a broker willing to let you hang your license at their firm with no experience.
Good for you!
Last edited by TampaKaren; 03-06-2012 at 05:38 PM..
Of course there are flat rate brokerages across the country.
But have you looked into how much it costs to keep your license every year? How much it costs to be a member of your local board in order to have MLS access? How much it costs to then obtain a supra key (or whatever lockbox system your area uses) so you can access the houses? How much it costs to join the state association as well as the National association, as many boards require being a member in order to have MLS access, some don't?
I don't think just having yourself as a client is going to offset all the fees you're going to pay each year unless you plan on buying at least 2 houses a year, and not just dabble in investments like 1 every couple of years.
For the person asking if I've looked into the costs mentioned. The only thing I haven't looked into is the subra key costs or what that is around here. Thank you for the heads up.
The other thing that I will be doing is talking to my tax person today to find out what I can expect to save on taxes, if any. I know a few years ago Realtors in Minnesota got tax breaks on their own investment properties. I don't recall the details from that, since at that time it wasn't something I could take advantage of.
At this point I'm running the numbers and figuring out the hassle factor. If I only buy 1 property this year it's looking like I'll probably break even, a large factor in this is finding the right broker for me. So I appreciate all of the insight so that I know what I can reasonably expect.
I am not a real estate licensee. So if what I post is incorrect, another poster will hopefully correct me.
You may be required to become a member of the National Association of Realtors (NAR) if that is a requirement of the broker with whom you associate. To be a member of the NAR, you have to pay dues at three levels: local, state and national. It is my understanding that this is expensive.
You cannot call yourself a Realtor unless you belong to the NAR. The term "Realtor" is a trademark. In some states, using this term when the licensee is not a Realtor can result in disciplinary proceedings.
Good luck in your decision.
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