Is it worth it to get my real estate agent license?

Question

I've been thinking about getting my own real estate license so I can save more on properties I buy, including our own future primary residence.
Does it financially make sense to carve out time from my schedule (evenings/weekends) to go through pre-licensing courses, exams, etc, and spend money on associated costs (e.g. MLS fees)? Given that I might only end up buying 1 or 2 properties approximately valued at +$1.5M in my lifetime.
Has anyone experienced a similar dilemma? how should I think and assess the situation?

Thanks in advance for your help!

Rick Albert · Answer

Here is what people don't realize about getting their real estate license:

1. It doesn't make you a better negotiator or investor. The license is geared towards the buying and selling of real estate. It is mentorship and experience that gets you what you want and doesn't require a license.

2. This is no longer a nights and weekend job. During the day you are prospecting, scheduling showings, attending inspections, and more. I work about 6-7 days a week and on average anywhere from 8 hours to 12 hours per day. Weekends might be a little less.

3. The $45,000 commission isn't your take home. You have to split it with your broker (new agents might be a 60/40 split) plus expenses and don't forget taxes. You are actually probably closer to $15,000 when all is said and done and assuming you spend the $1.5M in purchases in the same year (because you have to pay for MLS dues and insurance every year). This is assuming you take home the money and not put it towards closing costs, which even then the Brokerage might want a cut because of the liability of having their name associated with the deal.

Unless your goal is to be full time in Real Estate Agent world, don't bother. There is a reason why over 80% of licensees don't renew after the first round.

Eliott Elias · Answer

Holding your license does not just allow you to make your own offers & commission, it leaves you negotiating deals and making sure contracts run smoothly. Not having an experienced realtor could cost you more money than you will save making a commission.

Todd Jones · Answer

Coincidentally, I was just looking this up.

Individuals from the BP Podcasts say "No". In my opinion, it is on a case-by-case basis.

Pros:

- Access to MLS. This listing MLS is more up-to-date and instantaneous. Zillow or other similar sites are usually +1 day late. Speaking from experience on this one.

- No need to “deal” with an agent.

- $45k paid to you from commission fees if you are both the buyer and agent.

Cons:

- You’re just using the MLS for 1-2 homes. Probably not worth it.

- An experienced agent will help you deal with the complications of these deals. I don’t think you want a novice working on 1.5 million dollar deals. You’d sweat bullets.

Michael Poloncic · Answer

Food for thought. Consider what Robert Kiyosaki says in "Rich Dad Poor Dad" about hiring professionals to do their job. In summary when he finds someone really good at their job and pays them a lot of money to do it he ends up saving more money.

I was in a similar boat as you, thinking my license would be a way to save on buying properties. As time went on and my interests in what I was studying in school dwindled and my love for real estate grew I realized that being an agent would become part of my career as something I love. For you, you may want to stick with what you enjoy doing, make more money that way, and then let those who love being agents do their job for you.

Hope this helps! Best of luck with your decision.

Brandon Elliott-Pandey · Answer

I side with Rick here. He's done an exceptional job detailing out all the unforeseen aspects of getting a license as well. Split costs, taxes of top of that and any additional fees when it comes to getting your license since it varies state to state.

If you'd like to have a discussion about it lets connect! I'd be more than happy to share a few success stories and or "I learned that..." stories. :-)

Hamp Lee III · Answer

Plus, if you buy properties, the commission is typically paid by the seller, not you.

Delwyn A. · Answer

Getting a real estate license can provide numerous benefits, including the ability to earn a higher income, flexibility in schedule, and the opportunity to help people find their dream homes. Additionally, it can open doors to a rewarding career in a constantly evolving industry.

Jeff Roth · Answer

Hi Saleh-

Great question!

I think it is worth getting your license and that is exactly what I did.

Not only can you keep the commission from buying and selling but you gain knowledge from the process of getting and maintaining your license.

Additionally, you can run your own comps and have access to the MLS for prospecting new deals.

Finally, you are likely to make helpful contacts in your real estate office that can help you with your business.

To Your Success!

Anita Chu · Answer

this is exactly the dilema i went through. being an investor first and knowing that i'll be investing in more homes in the future, i ended up getting licensed. the fees of being a realtor per year ends up being around 2k, depending on which brokerage you join, mls fee, licensing fee. the way I look at it was, if i do at least one transaction a year to break even then it's worth it. if you're only going to buy 1-2 in your lifetime then it makes sense to just work a realtor you trust. but you might end up doing more than 1-2 transactions in your lifetime that you don't expect now, like selling, close family who's buying/selling/renting/investing etc. also consider that as a realtor, you have continuing education as well so the learning doesn't just stop after the pre-licensing classes.

Bud Gaffney · Answer

@Saleh Sadaghiani no. You can have mine if you want it

Is it worth it to get my real estate agent license?

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