SEEKING ADVICE: Getting a RE license to sell my co-op in NYC

[Jinyu Shao]

Hello! I have a co-op in Manhattan that I want to sell. It's currently being rented out, although not generating much return. I plan to take the real estate agent exam so I can be my own seller's agent and save on commission. (It's at least 6% in NY!) 

I'm currently living and working abroad and go back to visit 1-2 times per year. I'm trying to find out whether this is feasible in this situation.

I'm looking for advice for the following:

1) Can I represent myself to sell my co-op in NYC? (I know it's possible in some states, not sure if it's the same in NYC)

2) Can I do so while residing and working in a different country? (I can fly back for closing or other events that requires my presence)

3) If both of the above are okay, when do I need to be physically present?

4) Once I take the class online and pass the exam, what's next before I can represent myself to sell my property?

Thanks so much for reading. Looking forward to reading your replies!

[Jason Lee]

This is a co-op and so just because a buyer can afford the apartment doesn't mean they can get board approval. You have to know how to vet buyers and be comfortable parsing through assets and liabilities, determining debt-to-income ratios, etc. You yourself will need to be comfortable reviewing buyers' tax returns, bank statements, etc. There are also nuances to how to successfully frame applicants who are atypical but still qualified.... self employed, getting gifting, co-purchasing, etc. Putting together a board package isn't rocket science but it doesn't make sense to most who are not familiar with them. I'm amazed at how many errors I see coming from even "experienced" buyer's agents.

Then there's the practical side of how you will be able to show the apartment to potential buyers, hold open houses, prepare the unit for sale, etc. Yes, you can sell and even do a closing from out of the country (via power of attorney) but you won't actually be able to sell it unless you have boots on the ground. Oh and once you're licensed, you can't have a non-licensee hold open houses for you as that would then be the unlicensed practice of real estate. As a real estate licensee you're held to a higher standard.

The state exam must be done in person in NY.

You're assuming incorrectly that you can get licensed and save yourself 6%. The market in Manhattan has softened and it's gotten a lot harder to get deals done. Prices have dropped in many segments of the market and inventory has reached the highest level in several years. The majority of buyers are now represented by buyer's agents (whether they have consciously decided to work with one, or have been unknowingly paired with one through the many online portals). Those buyer agents expect a commission split or they will not show your apartment. Then there's your sponsoring broker (you need to be sponsored by one) who will take a cut as well. Then there are the costs to being sponsored: annual local board fee (REBNY in Manhattan), e & o insurance, tech fee, possible desk fee, etc.

If you really want to be an agent and have been thinking of switching careers or trying it out part-time then by all means get licensed, but this really doesn't sound like the right first deal. Is it possible? Yes. Is it more likely you'll net less than if you work with an expert? Most likely.