All Forum Posts by: Rebecca Rasmussen

The biggest reason "not to" would be costs. Cost of training, cost of "hanging" your license at a brokerage, then yearly costs of E&O, continuing ed, and licensing fees. Generally the hanging is the most expensive part, but you can find low-cost brokerages if you search. If not careful, though, it could eat up that $300/mo positive cash flow.

Other than that, I can't think of a reason to not do so. Having it might also open additional opportunities to you, as @John Thedford mentions. That could certainly offset all the associated costs, and more. 

80K in student loans, 40K saved up. Have her talk to a loan officer about paying down (not OFF even if she could, probably don't want to lose that type of account off the credit report right at this moment as that has adverse impact too) those loans and see what difference that might be able to make to her credit score and what impact it would have on conventional loan programs available to her. 

Terms like specialist and expert imply additional training, certifications, designations, and/or many years of focused experience. If you're comfortable implying that, go for it!

+1 what was said about email and website. DO get your own domain with associated email and use those fo-evah if you don't already do so. 

Associate Broker is my title

REALTOR is my affiliation

GRI is a designation (earned today the right to start using it!)

and where I finally mention investors? my Tagline (associated with a hunting dog logo): "Hunting, Pointing, and Retrieving Properties for Homeowners and Investors" which will be able to stick with me from newbie status (now) to expert status (future)

Have you passed your exam? Found a brokerage? Gotten your license? Where are you in your process?

Here in CO we have to spend at least 2 years affiliated with an employing broker. That broker should then offer training, support, knowledge, and the ever-present reviewing eye (they are often potentially liable if you make a contractual mistake so it's in their best interest to review your contracts for you). 

Does your brokerage offer a mentorship program? If so, absorb as much as you can from your mentor. 

Take as many continuing education classes as you can, in person if possible. I personally prefer online for straight-up education, but find that the things other brokers say in the in-person classes are great fodder for what to do and as often as not, what *not* to do.

Eventually though, you'll have to take the plunge. :0)

"Why do some agents put in that commission will not be paid on concessions?" --> I ask instead why is it the assumed norm to pay on GROSS vs NET? I contend that if anything's going to be assumed then the assumption should be NET, and GROSS the outlier. My guess is that the tradition was established before the concept of concessions came into the mix, and how commissions are calculated hasn't adapted.

As a listing agent I'm one who states in my broker remarks that commission will be paid on NET sales price and explicitly define it as [GROSS Sales Price] - [Seller Concessions] = [NET Sales Price]. [Seller Concessions] around here being any Seller contribution to closing costs or Buyer's fees, credits given to Buyer at closing for repairs, and so on.

We do have to have it specified in the contract -- or have the Sellers and Buyers review and sign an amend/extend -- that the commission is to be paid on NET Sales Price as otherwise the Closing company will *assume* it's being paid on GROSS and calculate the checks as such.

Why NET vs. GROSS? GROSS is sales value published publicly here after the sale, but ...

• NET is what the Buyer is actually paying for the property.
• NET is the value we use when comparing properties for CMAs.
• NET is the value Appraisers use when doing their work.
• And last but by far not least: NET should be the value on which we pay commissions because otherwise the Seller might be paying a commission on a sales price they did not receive. So, if there are concessions and the commission is paid on GROSS the Seller would be effectively paying a higher commission rate than agreed upon in the listing contract.

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@Steve Vaughan -- another way to look at that is $600 that the Seller keeps in his/her pocket. In my last listing the NET vs GROSS total difference was $65.83 that the Seller didn't have to pay. So, sometimes it really is peanuts but, as you say, always good press. :0)

For whom did the listing agent write this offer in which he's taking a commission? Is he maybe doing the listing for free, but then also bringing a buyer and charging a buyer-side commission? If so, those are different things though may be hard for the (any) client to understand the distinction. Also, if he's working both sides of the transaction, in CO that has to be done via Transaction Brokerage which often times requires additional paperwork and disclosures depending on how the initial listing agreement reads (top of first page -- Seller Agency vs. Transaction Brokerage).

The seller really needs to review her listing agreement with a lawyer to see what her outs are. As you likely know, some allow for "fire me anytime" and others specify a specific length of time. If nothing else, she can just wait that length of time and then move on to another listing broker. 

Re the MLS actual listing date, it should be in their listing contract in section 3.6 the exact date that it was supposed to appear on the MLS. What's the recourse if it wasn't actually listed on that date? Other than reporting him for possible association and real estate division sanctions it would be something else to pursue legally if she wishing to do so.

Unfortunately, there's nothing I can suggest that goes towards the "what can I do for her NOW" other than moral support, and as others said if she's not willing to pursue this with a lawyer there's not too much you can do. 

I applaud you, though, for being outraged on her behalf and trying to help her address it. Let us know how it goes?

I'd say go ahead and wade through the current courses, take the exam, then find a low-cost brokerage (e.g. not $1200/mo desk fee unless you have money falling out of your pockets (in which case, let's talk!). My emp. brokerage is $25/mo, for example). Hang with a brokerage who assigns a mentor, then milk their brains for every last drop. 

Also take as much training from your brokerage and as many continuing ed courses from everyone as you can fit into your schedule. I've learned oh so much just going to cont. ed. in person and listening to the b*tch sessions by other agents. I learned a lot of things to NOT do, and even a few things TO do. :0) Different perspectives are great.

When I completed a listing transaction in February this year, everyone raved about how smooth the transaction was and how knowledgeable I was about what I was doing. They had no idea it was my first transaction. That was both flattering (always nice to hear good things about one's work) but also very, very scary in terms of what I might expect to encounter in future transactions. 

*Listen* with ears and mind open. Question everything, even the things that are "the way we always do them".  One of my favorite questions is "Why?". To defuse the defensiveness that question unintentionally can evoke I often expand on that: "Why is it done that way? I'm a newbie and just want to understand the whys and wherefores behind the whats."

Real world is definitely different from academic, in every industry, but I'm surprised at times at the stuff I recall and say to myself "oh yeah, they did cover that, and that, and that", it just wasn't relevant to me at the time because I had no real world context. 

re: "A LOT of his time is spent just coordinating showing times for his listing properties" ... tell him to engage a showing service. Then he will spend little to no time coordinating showings and can spend much more time on better pursuits. 

( In terms of how I spend my time, well, I'm a newbie with just one listing under my belt so my time use would not be the best example. )