Buying property for your own as Realtor

[Ellen Holter]

Hi,

I'm a new Realtor and want to buy a house for myself. I have not yet sold or bought a house for clients. What do you do as a Realtor if you want to buy a house for yourself? Do you buy the house through your broker with the disclosure that you are a real estate agent as well (and get a split of the commission)? Or do you buy the house without your broker or any other agent (with the disclosure that you are an agent, but now just buying for yourself without acting as an agent).. and do you negotiate a lower selling prices with the seller because they don't have to pay a buyer commission? 

Or does anyone have another idea?

Thanks

[Brad Hammond]

Hi @Ellen Holter, when I purchased my home I received the commission. I think it will depend on if you find the property on the MLS or not. If it is on the MLS, you would want to go through your brokerage. If it is through a wholesaler, there aren't any agent fees anyway. If you find the property yourself and negotiate with the seller, I would have them lower the price and not pay the commission. That way you won't have to pay the broker split and pay taxes on the money.

Some other things to think about... 

1. Since this is your first transaction, it might be nice to have your brokerage look over your documents and ask them questions.  If you don't go through them, you won't be able to have them double-check your paperwork. 

2. If you don't use your brokerage, you won't have E&O insurance. That might not be a big deal, but something to keep in mind.