when to use license when buying

Question

When buying property for yourself do you use your license for the commission? or let the listing agent represent you and the seller in the deal? It seems like on competitive bidding wars on certain properties, the 2nd makes more sense.

Matt H. · Answer

@Martin Z. Okay I think this brings up a couple of important points. Things are different in different parts of the country. It is legal in CA  (we are not saying whether it should be or not in this discussion) and @Brie Schmidt I haven't met a single agent in 15 years that wouldn't happily act as a dual agent. I literally get 2-3 calls a week from listing agents with apartments they haven't listed yet saying I get first crack if I let them represent me. All anyone is trying to do is double. We actually just bought a new primary and I swear half the listing agents asked to represent me. It was pretty obnoxious actually given they know me. My model involves me making a commission. But it is pretty simple. If I am going to give up 2 to 2.5 points then they need to bring me a deal at least 5% under market. Or some metric that works for you. And in todays market they generally can't. Sure letting the other guy rep you in bidding war gives you the leg up. Why do you want to give up your comp and be in a bidding war? Bottom line is you have to understand everything and make a decision case by case.

Matt

Mike Cumbie · Answer

Hi @Martin Z.,

I put "Parties understand that the buyer is a licensed real estate salesperson" or

"Parties understand that the buyer is related to the buyers agent" if my wife is purchasing

Then I go down as the buyers agent and get the commission. Some brokerages won't take their percentage or will offer a discount on their portion. It is all on your relationship with them or their policies.

I would not have the selling agent work in my interest at all.

Good Luck!

Account Closed · Answer

That is the benefits of being an agent collecting the commission on  the buy or sell side or your properties that you have an interest in I see that you are form California so as of now you have no worries .Disclosure is the key and some RPA forms have a box to check if you have an interest in the property no matter how small of a percentage,   or that you are related to the seller or buyer

Brie Schmidt · Answer

I have represented myself in all my transactions, sometimes I forgo the commission to get the deal, but I always represent myself.

On the flip side I would bring in another agent ever single time I am in a dual agent situation.  The vast majority of legal disputes come out of being a dual agent and it is never worth losing my license and business to make a few bucks.  Even if I do everything by the book any hint of wrongdoing can cause a lawsuit

Jay Hinrichs · Answer

Although I think anyone in this industry in just about any piece of it.. is crazy not to be licensed and garner commissions.. even if its just referrals and especially here on BP..  I usually do 3 to 5 referrals a year that end up in closed transactions and I get a nice little referral fee.. just did one for just under one mil sales price referral will pay for a trip to Hawaii  LOL..

When buying your props to the extent you can you can lower price by your commish sellers are good with that I have found.

if your fix and flipping and a deal is skinny you list it yourself and save 3%  and here in PDX where prices on flips are generally 400 to 1mil  that's a cool 12 ro 30k savings iN YOUR pocket and many times could be your only profit.. if project went over or budget got blown..

In addition your networking with like mind professionals... not out on an island...

Jay Hinrichs · Answer

it depends.. when your buying OREO  and where its permissible and your in a multi offer situation and the numbers work.. letting the listing agent double end will in most instance miraculously get your deal done LOL....

Brie Schmidt · Answer

A.

Not all states allow dual agents, and even in states that do, most agents I know won't do it

Brie Schmidt · Answer

You represent yourself.  You do have the option of forgoing your commission.  Even if your state allows dual agency, most agents I know (myself included) would not do it because of the liability

Account Closed · Answer

That is it ladies I did not want to do this to you @Brie Schmidt and @Jennifer Lee but I believe the Big Kahuna's wife is a broker and they have sold many of their properties  that being @Jay Hinrichs

Of course it is a case by case basis but I have sold and bought many of my own properties while collecting commission  and now that it I am in Nevada it is legal also

Wayne Brooks · Answer

If you think it will make a difference, you Can represent yourself And give up your commission to the listing agent.

when to use license when buying

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