Here’s a potential scenario for anyone flipping homes: having to pay a commission of six percent or so on a $200,000 property. Despite the listing agent doing little other than snapping photos of the property, you now have to pay $12,000. To deal with this, you may be entertaining the thought of obtaining your real estate license. Is this a good idea? Maybe, maybe not.
When the time comes to sell a flipped home or a rental property, you do have the option of listing your own property without having to rely on someone else, potentially saving you money. However, that may not be as much as you think. Let’s use that aforementioned fee. For starters, half of that fee is probably gonna go to the buyer’s agent, with the remaining three percent for the listing agent (this would be you). Indeed, you’ll still have to pay the buyer’s agent regardless of whether you list the property yourself. Another perk: you’ll have direct access to the MLS, which means you can be the first to know about new listings.
Reasons why you may not wish to become a real estate agent? It takes work, time, and you have to pass a pair of exams. The courses won’t teach you much in terms of practical knowledge such as how to effectively market a property or become a better negotiator. Other items you’ll need to consider: getting hired and disclosing your investor license.
Make sure you evaluate the pros and cons to figure out whether it’s worth obtaining your license. If it’s just about saving on listing fees, it may not be worth your time. Contact the Monroe Funding Corp for your hard money loans Miami needs.