If you get your realtors license and buy a home for yourself, do you get the commission from the seller?
Also, is it hard to get your realtors license in Illinois? I see you can take classes online and then you take an exam, correct? It just seems buy getting a realtors license you could save a lot of money on purchasing homes. Can anyone give me more info or anything I should know before pursuing? Thanks!
Why do you have to be with a real estate company in order to get the commission? Can’t you just be independent?
Depends on whether the seller is offering to compensate a "buyer’s agent" – which is what you would be, right? The listing broker may have an agreement to split the commission with a buyer’s agent, in that case, you could use your portion of the offered commission to help pay for your expenses, or reduce the sales price.
You’ll have to check to see what the requirements are in IL to get a real estate license. Typically, you sign up with a broker and "hang" your license there. If you want to be a REALTOR, you would have to sign up with a broker who is a member of the local Board of REALTORs.
Educate yourself about the costs of doing the real estate course study, exam, licensing fee, REALTOR board fees – local, state and national, MLS fees, E & O insurance, etc.
Check to see what the broker’s policy is for an agent to buy his own residence…some allow all the commission to go towards the purchase, some keep a lowered percentage of their share of the commission.
I think you will be surprised to see how little you will "save" in the purchase vs getting an experienced real estate agent to represent you in the transaction.
December 31st, 2009 at 6:39 am
If you get your license and then work for a real estat co THEN you could get good deals. But just buying a home from a seller does not make you any money. The money comes in when you sell the house and make your profits.
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December 31st, 2009 at 6:44 am
yes, you can keep the commission but you mst disclose that you are a realtor. as far as getting your lic. it difficult and expensive to say the least. you have lic. fees realtor dues, multiable listing dues, lockbox dues, continueing ed. classes it’s just not that easy.
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December 31st, 2009 at 7:09 am
You must have a Realtors license to buy or sell and that license comes from the state of Illinois after you take the test at the state house. You must have completed an accredited Real Estate course to qualify to take the exam and yes, after proper disclosures, you may get compensated from the sale of your own purchase. Real Estate is a very demanding business.
I’m a Realtor:
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December 31st, 2009 at 7:35 am
The seller has to agree to the commission if they want to sell the house, and it has to be in the agreement contract. Also, you must disclose that too, and I agree with the person who said you have to pay all those fees because you do. Plus in today’s market it is very tight and competitive.
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December 31st, 2009 at 7:47 am
You can, but it would cost you almost as much as the commission to take the classes, take the exam, join the national, state and local boards, get hired with a broker, obtain a lockbox key, etc… and not to mention that e & o insurance typically doesn’t cover personal transactions.
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December 31st, 2009 at 8:07 am
Depends on whether the seller is offering to compensate a "buyer’s agent" – which is what you would be, right? The listing broker may have an agreement to split the commission with a buyer’s agent, in that case, you could use your portion of the offered commission to help pay for your expenses, or reduce the sales price.
You’ll have to check to see what the requirements are in IL to get a real estate license. Typically, you sign up with a broker and "hang" your license there. If you want to be a REALTOR, you would have to sign up with a broker who is a member of the local Board of REALTORs.
Educate yourself about the costs of doing the real estate course study, exam, licensing fee, REALTOR board fees – local, state and national, MLS fees, E & O insurance, etc.
Check to see what the broker’s policy is for an agent to buy his own residence…some allow all the commission to go towards the purchase, some keep a lowered percentage of their share of the commission.
I think you will be surprised to see how little you will "save" in the purchase vs getting an experienced real estate agent to represent you in the transaction.
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TX REALTOR
December 31st, 2009 at 8:38 am
if you state so in the purchase contract. Otherwise, the
contract can be declared null and void.
IT is "hard" to get a license anywhere. The test questions
are difficult on purpose.
IT is absurd for a new licensee candidate to take all his
classes on line; from whom can he seek understanding
and clarification?
[not all licensees are Realtors, remember that!]
to earn a "fee", you need not be licensed; you can earn
a "flipper fee" by assigning the contract.
to be a licensee means to represent someone. where
FiDUCIARY comes into effect.
ALL licensees must be supervised. IF you wish to
only buy RE and earn a commission, list your license
with a 100% office.
RE is not quite as simple as you wish to think.
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RE broker
December 31st, 2009 at 8:53 am
You will not save that much. The classes and even taking the test is not free. You also have to pay fees to join the real estate boards.
A typical buyers commission is 3% of the sales price, but you have to give half that to your broker. In the end you end up with 1.5%, before paying all of the fees and of course the income tax. You would be lucky to end up with .5% after all is said and done.
If you want to work independently you have to have a brokers license, which requires you to work under a broker for 2 years. Your RE license is only valid if you are under a broker, he is the one with the real legal liability, etc.
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December 31st, 2009 at 9:21 am
You cannot receive a commission as a real estate agent unless you are under the purview of a real estate broker. You CAN get your broker’s license and operate independently, if you wish to go through all the hassle involved.
However, without a broker’s license, you MUST be licensed under a brokerage firm with a licensed broker before you can legally receive any commission. Of course, any commission you manage to save will be split with that brokerage firm.
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