NEED ADVICE: getting a real estate license to sell my own home

[Jinyu Shao]

Hello! I have a co-op in Manhattan that I want to sell. It's currently being rented out, although not generating much return. I plan to take the real estate agent exam so I can be my own seller's agent and save on commission. (It's at least 6% in NY!) 

I know this might be a weird question to ask in an agent's forum since I choose not to hire one this time around...but I would love to hear advice from your perspective and would really appreciate any input.

I'm currently living and working abroad and go back to visit 1-2 times per year. I'm trying to find out whether this is feasible in this situation.

I'm looking for advice for the following:

1) Can I represent myself to sell my co-op in NYC? (I know it's possible in some states, not sure if it's the same in NYC)

2) Can I do so while residing and working in a different country? (I can fly back for closing or other events that requires my presence)

3) If both of the above are okay, when do I need to be physically present?

4) Once I take the class online and pass the exam, what's next before I can represent myself to sell my property?

Thanks so much for reading. Looking forward to reading your replies!

[Russell Brazil]

You dont need a license to sell your own property.

Having a license doesnt mean you know what you are doing.

Its very clear from the questions you are asking, that you should in fact hire a professional.

[Wayne Brooks]

Yep, hire a good agent. Your “savings”, assuming you got the same price, would be about 2/3 of 3%, you still pay the buyer agent and your broker gets part of your 3%).....less probably $1500 in licensing, mls fees for you. This assumes you are still a NY resident and qualify to get a license. 

[Mike McCarthy]

@Jinyu Shao when your car breaks down, do you train to be a mechanic? It’s most likely not worth your time and effort, and being your first sale, you’ll need to know a LOT to make it successful.

If being a RE agent is something you’re passionate about and want to do - starting with your own home is probably a great idea. But if it’s just to save a few %, you’ll likely make that money back working with a good and experienced realtor.

[Brian Ellis]

If you want to save on the commission you can just sell your home using a real estate attorney. 

[Amber Gonion]

@Jinyu Shao. As an experienced real estate agent we have experienced all kinds of negotiation ploys and tricks. New agents are at a great disadvantage. Fsbo are often a total disaster.

Save your money and hire an experienced Realtor 3% for the listing agent will likely get you more money in the end. Work on negotiating with your listing agent to reduce your listing fee.

[Lien Vuong]

You do not need to have a license to sell your own house. Selling a home is more than taking a few calls for showings and pushing some documents around. A good agent will negotiate the deal and get you the price on the terms you're looking for. In many cases they will pay themselves with the difference of what you're expected to make and the realized final number. 

Apart from that they will evaluate your property's market value to make sure you're getting top dollar. Are you really going to rely on yourself and Zillow to tell you what your house is worth and not an agent who's day in and day out job it is to have a pulse on the market?

[Bryan Scott]

@Jinyu Shao

First of all, focusing on, "It's currently being rented out, although not generating much return."  Unless you have an amazing relationship with your tenant, do yourself (them, and all the buyer's agents and buyers who walk through the property) a favor and make sure your tenant has moved out, fix and re-paint as needed, then tastefully stage the property.  As a long-time landlord, trust me, you will thank me for this later.

As for your list of questions, see my answers below, next to each:

I'm currently living and working abroad and go back to visit 1-2 times per year. I'm trying to find out whether this is feasible in this situation.  Always feasible to sell in your absence, but who will be conducting showings?  I hope you are not depending on your tenants doing all that needs to be done prior to each showing?  You want to make it as easy as possible for buyer's and their agents to schedule and show your property.  Any issues with this will only reduce your buyer's pool and make it a longer sales process.

1) Can I represent myself to sell my co-op in NYC? (I know it's possible in some states, not sure if it's the same in NYC)  As was stated by another member above, yes, always, but the question is how much will doing this cost you by not using a seasoned agent who really understands the process - start to finish - how to deal with buyer's agents, uses a showing service and an electronic contracts system, never-mind the issues you create for yourself by not listing the property as vacant and staged properly.

2) Can I do so while residing and working in a different country? (I can fly back for closing or other events that requires my presence)  Sure, as long as you observe the above issues and make sure all these steps are observed and items are properly dealt with.  Otherwise, it will be a miracle to have this work out the way you intend.

3) If both of the above are okay, when do I need to be physically present?  Again, if you handle the above issues through others, you never have to show up physically.  You can close the transaction remotely via a Fed-Ex package or other overnight carrier, or perhaps a mobile notary or equivalent (maybe a bank where you reside?) or via electronic contracts software, using a listing agent, or an attorney, or not (on both) and just depend on your chosen title company to close it, which they will, but if you have any issues or problems, who will solve them?  Most of the work on any purchase contract is done long before the close date, but what happens if there are issues just before close, or during the close?  Not too likely, but who handles in your absence?

4) Once I take the class online and pass the exam, what's next before I can represent myself to sell my property?  It may not be as simple as you think from a cost perspective.  You may well be able to take and pass the exams after passing the requisite course material, but it costs in several ways to maintain a license.  You will incur up-front and monthly, or other periodic fees to get your license (after paying for the education and exams) and you will have to "hang your license" with an employing broker, which will also cost you monthly or periodically to keep it in good standing.  Plus, you will need to decide whether or not to become a board member Realtor, which also costs annually at minimum.  Finally, to maintain an active license, you need E & O Insurance, which is another $200-$300 per year on top of the above.  Unless your intent is to make your living as a licensed agent (Realtor or just Real Estate Agent), do yourself a favor and just don't.  Oh, and let's not forget about the ongoing "continuing education" credits you need to amass before renewing your license (assuming you become a "Realtor").

If your primary motivation for getting a license is to save money selling your own home, it is totally unnecessary, but you should observe the necessary steps required and market rules for selling, whether via an agent, or yourself.  It's all about processes, procedures and a bunch of experience to get your property sold, which a good agent makes it seem easy.  Unfortunately, unless you have been a real estate practitioner, and a good one, you don't know what you don't know, which makes a conversation like this incredibly difficult to understand from a layman's perspective.  Some things you just have to stipulate are true and trust in others to assist.  This is one of those things.

You need help selling your property if you wish to get the largest offer in the shortest amount of time.  If you choose to venture out on your own, it will cost you dearly.  Best of luck! 

[Jim Cummings]

@Jinyu Shao. This is not an intelligent idea. To be more blunt - it's a dumb idea. I'm sure it's possible - but what brokerage is going to carry your license while you are out of the country on a semi-permanent basis? This scenario will ultimately costs you big $$$. To make this happen and get the most $$$ you need to have the house vacant. Tenants are not going to want to live through numerous showings, and will sabotage you at some point in the process.  

[Jinyu Shao]

Thanks everyone for the input. Maybe it is a better idea to work with an agent this time. If anyone knows a good agent in Murray Hill area in Manhattan, recommendations would be much appreciated!