Infowell,
Your posts are really getting pointless. The last few have been nothing more than following niravmd around trying play off his reponses in a negative way. That’s disappointing. I thought that you would have more integrity than that. Please, whatever the problem is there, just get over it.
Most Agents don’t make it in the business w/the majority who attempt it washing out
This is correct. If you are planning on becoming an agent, be prepared to work hard for your money. It only gets “easy” when you’ve become successful.
In another thread …“average agent”…$36k a year…That’s hardly an obscene profit
That’s true. However, it has little to do with the question, or the response. Niravmd “obscene profit” comes from when, as an investor, you buy at a steep discount and resale. If you are an agent and don’t fully disclose this fact to the seller, there will be serious legal repercussions. Heck, in NC, even if you DO fully disclose it and make an “obscene profit” in the eyes of the Board, you could have problems, if the board fills that you did not act in the best interest of the seller.
In ‘03’ 14% of all homes sold were sold by owner. They sold on median @ 15.4% less than agent assisted sales. What that tells me is this; those seeking to cut Agents out of a sale (because they resent their “obscene” commissions) are actually costing themselves more than double than if they’d used the services of an Agent.
Well, there are a number of problems with the above statement. First, data without corroboration is merely opinion (in other words, where did you get your figures). Second, data without ALL the facts is merely useless opinion. Why were the FSBO selling without an agent? Was it because they were trying to cut out the commission, or was it because they didn’t have enough equity to pay a commission? Did they sale to a family member for a discounted price (my Dad sold a lot to my brother for $1. Sales like that might skew data). Was it a distressed sale (did they sale to one of us nasty investors that “stole” their property from them)? I could go on, but I think you get the idea. BTW, no one said anything about an agent’s commission being “obscene,” so why bring it up?
If you get your license you will have to disclose your qualifications, and while I’ve heard that this is a hinderance…I’ve never found that to be the case.
This, of course, is an opinion. The fact is whether it’s a hinderance or not will greatly depend on what exactly you will be doing, and even to some extent, the particular laws in your state. If you are planning on buying REOs and MLS listed property, fixing up and reselling, then having a license probably won’t be a problem. If you are planning on dealing with homeowners selling directly, then it probably will negatively affect your investing. Example: In NC, by default, an agent represents the seller. IF you are the only agent in a transaction, by default, you are a DUAL agent. Now, does anyone see a problem with you representing both yourself as the buyer and the seller? It’s difficult (but not impossible) to convince someone to take $70K for a property that you just told them as a FMV of $100K.
If you make it…you’ll have a better understanding of the marketplace than most and you’ll be dealing in much higher volume, thereby, seeing more “deals” come your way.
If you make it as an investor you’ll have a better understanding of the marketplace than most and you’ll be dealing in much higher volume, thereby seeing more “deal” come your way. That’s just the nature of any business. The successful people generally know more about it than the unsuccessful people.
Raj