I’m a private investor wondering if there is an advantage to getting licensed as a real estate salesperson or broker in Illinois? My understanding is that only a “broker” can list properties on the MLS. Is this correct? If I get licensed as an RE agent/broker must the listing agent always split their commission? What would be the downside(s) to being licensed?
I’m not sure how it works in Illinois, but in Texas one must be an agent under the supervision of a broker for 2 years before that agent can take the broker’s exam and get a broker’s license.
The agent acts under the broker and can list properties in the mls under the name of the broker, but the listing belongs to the broker. The commission goes to the broker and the broker delivers the agent’s portion of the commission to the agent. At the company I work with, the starting split for new agents is 70% of the commission. So, if I was working as a buyer’s agent and the commission that my broker receives is 4500 dollars (3% of the listing price with the other 3% going to the seller’s broker), then I would get paid 3150 dollars.
There are start up and continuing yearly fees for the mls which you would need to consider.
As an agent or broker, you would have to disclose that you are licensed to the seller/buyer. You would need to decide if you think this would hurt your negotiating position or not.
A benefit would be that you would have access to mls listings as soon as they hit the market.
Also, to more specifically answer your question which I have yet to do (sorry I’m tired and rambling), you may or may not have to split your commission as a listing agent depending on the policy of the brokerage that you are working under (if you are only a salesperson and not a broker). But, I would never reccommend listing a property without splitting the commission with the buyer’s agent. Yes, the buyer’s agent must show his/her client all homes that match their criteria, but many agents would probably not show your home as one the first few. To not pay the buyer’s agent hurts your position as a seller in most cases.
I hope that ramble answered some of your questiosn.