Buying a homestead as an Agent

[Michael K McClafferty]

Realtors!

I just passed my license exam in Michigan but have not registered with a Broker yet.

I am going to purchase a new primary residence in the next few months and rent out my condo.

Feel free to post your experience or advice on purchasing a primary residence as an agent.

Any help would be appreciated!

Thank you!

Mike

[Russell Holmes]

@Michael K McClafferty you'll need to hang your license with a broker to be able to 'be your own agent'.  But after that point, you can use the offered buyer's commission toward your purchase if you write it into the contract as such.  Use the commission toward closing costs or offer not to take it to get a better price.  Check with whichever brokerage you use, they will typically waive any company split or fees (or have a minimal flat fee) for personal transactions.  

FHA and VA loans typically have 3% limits to seller concessions so if commission happens to be higher you may need to take the rest as commission or state it as a discount to purchase price. Conventional loans under 10% down would also be capped to 3% concession while higher down payment conventional will be more (6% cap at 10-25% down, 9% at 25%+ down). Crediting your commission to the purchase will typically fall under the same category as a seller credit since it's a concession from an interested party (IPC or interested party concession).

Aside from the financial benefit of putting commission toward the purchase, you can go show yourself as many houses as you like requesting your own appointments.