Might be selling two properties - is it worth getting real estate license first?

Question

So long story short, I have a townhouse I might sell (~$250k) and a house (~$520k). I'm wondering if it would be worth getting my real estate license and then listing them myself. I am fairly knowledgeable about real estate, so I'm thinking that the combined $20k-ish in listing fees might be worth it for me to just go ahead and crank out my real estate license. There are plenty of other long-term benefits of me having the license for future purchases, etc., but curious if anyone here has faced the same decision, if so, what you decided, and what you learned from it?

Thanks in advance!

Bruce Woodruff · Answer

Not necessary...and probably a bad business move unless you want to get into the business full-time and help others buy/sell properties.

I have done it both ways and as Account Closed said, you can list a property on the MLS for very little (<$200 last time I did it) and take seller agent savings as you want to.

Steve Vaughan · Answer

I just sell mine by owner, especially lower to mid-tier rentals.

But my goal is to pass the commission savings on to the first time OO buyers that really need it.

The duplex I sold today for $475k instead of $495k-$515k saved the buyer at least $20k.

They are now househacking to future wealth and I have a new friend.

People think inflation is created or solved by the govmit.  I'm looking around at all the people trying to get paid on RE transactions and SMH.

Russell Brazil · Answer

Its worth getting your license if you actually want to go into real estate sales, and want to practice on your own properties so if you mess up ypu arnt harming a consumer.

But if you dont actually want to go into sales, all thay savings you save will get eaten away in just a few years in the cost of maintaining a licese.

Mark S. · Answer

@Duane Gunkler In addition to all the other expenses mentioned, you have state, federal and FICA taxes. By the time you add everything up there isn’t a lot left on $20k.

Bruce Woodruff · Answer

But that's not a a sure thing. A lot of sellers and/or buyers will just expect you to reduce by that amount. It's no guarantee at all......

Ben Firstenberg · Answer

Michael makes a good point. You would only save on the seller's agency commission and would still have to pay the buyer's agent. I calculate that you'd save somewhere around $20-25k in fees on the two properties. Just like you said.

What you're paying for when you hire an agent to list your property is partially the license but mostly the expertise and the work. Selling a house requires a fair amount of work behind the scenes that most people don't see.

I DO think that getting your license to learn about the mechanics of a real estate transaction is a good idea. Understanding title, liens, deeds, mortgages and all of the other pieces is definitely useful information. That said, you'll learn a lot more actually working as an agent than you will from just taking the test. I can tell you that first hand.

I think for me the deal breaker would be which brokerage you plan to sign with. If you know someone at that brokerage and they were willing to help teach you the necessary skills to pull off the transaction, then it would probably be worth it. But if you were going in all alone, I don't think I'd recommend it. Hope that helps

Michael Dumler · Answer

@Duane Gunkler, if you're thinking about going down this route to save money, I would recommend that you instead hire a fee-based brokerage to simply list your properties on the MLS for marketing exposure. Keep in mind, that these structured type companies will not represent your best interests and will not negotiate on your behalf whatsoever. All they do is list your property on the MLS in exchange for an X amount fee. You would still be responsible for paying the buyer's agent the typical 2.5%-3% commission fee, however. Overall, if you're not buying or selling usually three to five properties a year (price dependent), then it's not worth acquiring a license. Moreover, you technically don't need a license to sell your own real estate. That being said, you then don't have access to the MLS and would have to rely on other marketing platforms such as Zillow, Redfin, Trulia, etc. to sell your properties. Hope this helps!

Sarah Blesse · Answer

I did this! I figured no one would market my properties better than I would. I’m a sales professional in my W2 so the skillset moved over just fine. Shoot me a message if you’d like to chat.

Russell Brazil · Answer

Youll also need to pay MLS subscription fees, electronic lockbox subscription, Realtor association dues, e&o insurance, most brokers have fees to the agents as well.

Every market is different in terms of costs, but $3-5k annually is a pretty typical range of just having a license. 87% of people who get a license, dont even renew it. Part of that is because none of them really think about these annual costs until after theyre paying it and not doing deals.