Feasibility of CA Real Estate Licensure to Avoid Realtor Fees

[Account Closed]

Is there any logic in obtaining a CA Real Estate license to avoid realtor fees (without the intention of becoming a real estate agent)?

Currently have some free time on my hands as I am saving for the purchase of a new primary residence in about 9 months.  Would this be a productive use of my time?  Has anyone done this?  What are the logistics in regards to a broker holding my license?  Will rent out my current property after purchasing a new residence.

TIA!

[Jon Schwartz]

Originally posted by @Account Closed:

My mistake, I thought that the status quo was to split the 6% between seller and buyer in Socal due to market.  Therefore, as a buyer there is little advantage in having a real estate license in terms of closing costs, correct?

Any other options for decreasing closing costs through licensure in California?  

 Mitchell, you're right about the split. If you represent yourself in the transaction, as the buyer's agent, you'll get half the commission. So you'll get 2.5% or 3% of the sale price back at closing.

I'm about to take my CA real estate exam, so here's a rundown of the quickest/cheapest way to get your license:

You're required to take three, 45-hour classes. I bought an online program that cost around $400. I got mailed textbooks and took online exams. I'd say each class actually took up 20 hours of time. So, $400 plus 60 hours of time to qualify for the exam.

Once you complete the classes, you can apply to take the exam. The exam in extremely backlogged. The wait is something like 4-6 months now in Socal. The exam and license together cost $305.

Once you're an agent, the cheapest brokerage options are these zero-guidance online brokerages that only charge a fee, $500 at the lowest, when you close the transaction. If you join a brokerage that provides any amount of help with the paperwork, etc., you'll end up having to give them 33% or 50% of your first commission, as well as costs up front for training, etc.

So, at the very cheapest, you're looking at $1200 or so plus 60-80 hours of work. What purchase price are you targeting? Will it be worth the cost for that 2.5% or 3% rebate?

Best,

Jon