Becoming a Realtor to Represent Yourself

[Angie DeNardo]

Hello! My name is Angie and I am a relatively new real estate investor in the Denver market. My goal is to purchase one to two properties per year likely from the MLS. I am interested in becoming a realtor, so I can represent myself. I am wondering if it would be worth my time. Does anyone know what the average commission rate is on a home sale in the Denver area including Arvada? Also if I was to become a licenses agent what would be my next steps to gain access to the MLS. In addition all agents I have worked with in the past have a transaction coordinator. If I represent myself, I assume I would need to be in charge of make sure all documents are submitted in a timely manner? At this point I would struggle to know what is required, and I am wondering if I would learn that through the training to become an agent? I would love to connect with a local investor who has taken the approach to become a realtor to represent themselves.

Thank you in advance!

[Matt M.]

If you are only buying 1 or maybe 2 properties a year and NOT selling homes to other people, I would pass on getting licensed. You won't gain enough experience to really know what you're doing.  I watched a friend of mine who did what you want to do, whom also shall remain nameless if he reads this;), got pushed around in a transaction by a veteran agent. 

However, people do it all the time, but I personally don't think it's a good idea. Commissions vary from $1500-3% of the purchase price. You can always approach the listing agent, and see if he or she will reduce her commission to make your offer better for the sellers.

Agents have and pay to access ($45 a month) REcolorado. You would be responsible and expected to know all the paperwork involved in the transaction. You'll learn that through your classes and eventually through your broker. You'll also have office fees, ctme contract fees, Realtor dues if you become one, O&E insurance, website, etc, etc. It adds up.