{"id":2886,"date":"2023-04-03T10:08:55","date_gmt":"2023-04-03T14:08:55","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=2886"},"modified":"2024-04-25T23:18:08","modified_gmt":"2024-04-26T03:18:08","slug":"would-you-become-a-real-estate-broker-to-buy-your-own-home","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/would-you-become-a-real-estate-broker-to-buy-your-own-home\/","title":{"rendered":"Would You Become a Real Estate Broker to Buy Your Own Home?"},"content":{"rendered":"\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"397\" src=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2023\/04\/would-you-become-a-real-estate-broker-to-buy-your-own-home-1024x397.png\" alt=\"\" class=\"wp-image-2887\" srcset=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2023\/04\/would-you-become-a-real-estate-broker-to-buy-your-own-home-1024x397.png 1024w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2023\/04\/would-you-become-a-real-estate-broker-to-buy-your-own-home-300x116.png 300w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2023\/04\/would-you-become-a-real-estate-broker-to-buy-your-own-home-768x297.png 768w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2023\/04\/would-you-become-a-real-estate-broker-to-buy-your-own-home-1536x595.png 1536w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2023\/04\/would-you-become-a-real-estate-broker-to-buy-your-own-home.png 1787w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Recently, a D.C. schoolteacher was in the news after getting licensed as a real estate agent. Why was this newsworthy? Because her reason for getting licensed was to learn the ropes, stop renting, and buy a house in the burbs.<\/p>\n\n\n\n<p>Save the buyer\u2019s portion of <a href=\"https:\/\/www.deeds.com\/articles\/how-much-will-you-pay-your-real-estate-agent\/\">5% to 6% in agent commissions<\/a>, get access to the Multiple Listing Service\u2026 Would you do it?<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\">Not in the Market to Overpay: Alyssa\u2019s Story<\/h2>\n\n\n\n<p>In early 2022, this 30-something D.C. schoolteacher decided to get licensed and become a part-time real estate broker. She could tell us that becoming a broker takes advance research. State law varies \u2014 and it controls the requirements.<\/p>\n\n\n\n<p>Alyssa met them, and is now a new, first-time home buyer. She is also a new sales rep for Coldwell Banker.<\/p>\n\n\n\n<p>On the way to buying a home, Alyssa was twice outbid, a little disappointed each time, but that was OK. She wasn\u2019t in the market to overpay.<\/p>\n\n\n\n<p>Ultimately, Alyssa got a 3-bedroom house in Capitol Heights, Maryland. <em>And <\/em>she got more than $5K in commission after closing.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why Don\u2019t More People Do This?<\/h2>\n\n\n\n<figure class=\"wp-block-image alignright size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"428\" height=\"641\" src=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2023\/04\/why-dont-more-people-do-this.jpg\" alt=\"\" class=\"wp-image-2888\" srcset=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2023\/04\/why-dont-more-people-do-this.jpg 428w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2023\/04\/why-dont-more-people-do-this-200x300.jpg 200w\" sizes=\"auto, (max-width: 428px) 100vw, 428px\" \/><\/figure>\n\n\n\n<p>Many people don\u2019t do this for the reasons you\u2019ve likely guessed:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>It\u2019s quicker to go with an agent.<\/strong> How many buyers find the time to plan out their path to licensing? There\u2019s generally 40 hours of course work. Continuing education is an annual requirement. There\u2019s also the little matter of sitting for the exam. And, there\u2019s financial planning involved. For example, MLS fees cost hundreds of dollars. Not to mention the costs of the course work. And the local, state, and association-level professional fees.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>State law can make becoming a broker a bit complicated.<\/strong> In some states, no one may become a broker before first selling homes for another broker for two or three years.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Becoming a real estate professional is just not everyone\u2019s thing.<\/strong> Some buyers don\u2019t want to go through the licensing journey. Some don\u2019t feel they\u2019re cut out for the real estate profession. Here again, continuing professional education is part of being licensed. This can pay off if the licensed pro wants to help other people buy and sell their homes, too.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Many buyers want someone with lots of local experience to guide them through the negotiation and buying journey.<\/strong> Buyers may believe themselves more likely to get a good deal (and to avoid beginners\u2019 mistakes) that way. After all, real estate professionals understand purchase contracts. They make sure the sales contract includes the key contingencies. And they can explain the risks of waiving contingencies. They understand the title company\u2019s process. They are used to working with real estate attorneys. They know the county and state fees and procedures.<\/li>\n<\/ul>\n\n\n\n<p><em>\u261b<\/em><strong><em>&nbsp;Take a look at some strategies for successfully <\/em><\/strong><a href=\"https:\/\/www.deeds.com\/articles\/succeeding-with-contingent-offers-in-a-sellers-market\/\"><strong><em>buying a home with contingencies<\/em><\/strong><\/a><strong><em>, even in a hot market.<\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Can Buyers Represent Themselves Without Getting Licensed?<\/h2>\n\n\n\n<p>Check your own state\u2019s laws, or speak with a real estate lawyer to know what\u2019s allowed. In most places, you can be your own real estate agent.<\/p>\n\n\n\n<p>For the self-representing buyer, there is no buying agent&#8217;s commission to pay. That means about a 3% savings in most deals. Not always, though. Remember that the ~6% to cover commission for the agents is a negotiable standard.<\/p>\n\n\n\n<p>Just as buyers can represent themselves, so can sellers. Direct sales by owners can be listed on the Multiple Listing Service.<\/p>\n\n\n\n<p>If <em>For Sale by Owner<\/em> is too bare-bones for you, try running a search for \u201clow commission real estate agents online\u201d and review the results. Also look for \u201climited-service real estate brokers.\u201d Some firms simply list the homes and install lock boxes where needed. With these firms, you\u2019ll do the negotiating with the other party\u2019s agent.<\/p>\n\n\n\n<p>A few things to keep in mind:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The parties to a sale may <a href=\"https:\/\/www.deeds.com\/forms\/\">create a deed<\/a> themselves. They can still have mortgage and purchase agreements created by professionals. &nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The property must be appraised to determine its fair market value and to allow for financing.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Hiring a title company to carry out a title search can flag existing claims on the home. Title companies are familiar with, and can work with, buyers and sellers who represent themselves.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Title insurance must come into play if the buyer takes out a mortgage. This protects the lender for so long as a loan exists. An&nbsp;<a href=\"https:\/\/www.deeds.com\/articles\/home-buyers-cover-your-assets-choosing-between-standard-and-extended-title-insurance\/\">owner\u2019s title policy<\/a> is good for protecting the buyer throughout the entire ownership period. &nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Also, there are tax consequences in a decision to buy a home. Consider having a tax expert examine your purchase agreement.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Potential Pitfalls of Serving as Your Own Real Estate Agent<\/h2>\n\n\n\n<p>There\u2019s something to be said for having a dispassionate agent working on your behalf. If you represent yourself, you might be tempted to skip vital parts of the buying process. You might misread some part of the contract, simply out of a lack of long experience. You might overestimate or underestimate the importance of a defect in the home, whether disclosed by the seller, or possibly noted in the inspection report.<\/p>\n\n\n\n<p><em>\u261b<\/em><em> <strong>Experience tells you what issues to look out for. It tells you how to handle issues when you find them. It tells you what to look out for when you\u2019re not sure the other side will. For example: <\/strong><\/em><a href=\"https:\/\/www.deeds.com\/articles\/a-seller-wouldnt-hide-a-defect-right\/\"><strong><em>A Seller Wouldn\u2019t Hide a Defect, Right<\/em><\/strong><\/a><strong><em>?<\/em><\/strong><\/p>\n\n\n\n<p>The pitfalls become even bigger if no one in the transaction is represented by a professional. If a broker works on behalf of both sides of the agreement, a legal conflict of interest known as <em>dual agency<\/em> can arise. Dual agency involves licensed brokers who essentially represent both parties. <a href=\"https:\/\/www.federaltitle.com\/dual-agency\/\" target=\"_blank\" rel=\"noreferrer noopener\">Rules surrounding dual agency vary by state<\/a>.<\/p>\n\n\n\n<p>The main point of hiring an agent is to have fair and adequate representation for each party.<\/p>\n\n\n\n<p>Ask yourself, too:<\/p>\n\n\n\n<p><em>How much in time and resources am I putting into this plan? Do I want to learn to be a broker? Are the requirements in my state worth following, in my situation?<\/em><\/p>\n\n\n\n<p><em>And what about my likely skills as a broker? Will I be able to <\/em><a href=\"https:\/\/www.deeds.com\/articles\/negotiating-the-purchase-contract\/\"><em>negotiate the best terms and price<\/em><\/a><em>? If not, am I really saving anything?<\/em><\/p>\n\n\n\n<p>Really wanting to be a broker for the long term could make it all worthwhile. But if real estate isn\u2019t your passion, it might be a better idea to enlist someone who\u2019s got the job down pat.<\/p>\n\n\n\n<p><em>\u261b<\/em><em> <strong>A real estate agent who represents you has a bundle of fiduciary duties \u2014 to you. <\/strong><\/em><a href=\"https:\/\/www.deeds.com\/articles\/your-real-estate-agents-fiduciary-duties\/\"><strong><em>Learn more about a real estate agent\u2019s duty<\/em><\/strong><\/a><strong><em> to the client at Deeds.com.<\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Our Takeaway<\/h2>\n\n\n\n<p>With an informed understanding of the requirements and ethics, you can successfully represent yourself in a real estate deal. And you might save a significant amount of money in the process.<\/p>\n\n\n\n<p>Plus, if you become a broker to reach your goal of homeownership, you\u2019ll be learning a valuable skill as part of the journey. &nbsp;<\/p>\n\n\n\n<p><strong>Supporting References<\/strong><\/p>\n\n\n\n<p class=\"has-small-font-size\">Michele Lerner for <em>The New York Times<\/em>: <a href=\"https:\/\/www.nytimes.com\/interactive\/2023\/02\/02\/realestate\/washington-dc-capitol-heights-house-sale.html\" target=\"_blank\" rel=\"noreferrer noopener\">The Hunt \u2013 She Became a Broker to Buy Her Own House Near Washington, D.C. Which Did She Choose<\/a>? (Feb. 2, 2023).<\/p>\n\n\n\n<p class=\"has-small-font-size\">Carla Ayers for QuickenLoans\u00ae: <a href=\"https:\/\/www.quickenloans.com\/learn\/can-a-real-estate-agent-sell-their-own-home\" target=\"_blank\" rel=\"noreferrer noopener\">Can A Real Estate Agent Sell Their Own Home<\/a>? (Aug. 30, 2022).<\/p>\n\n\n\n<p class=\"has-small-font-size\"><em>Deeds.com<\/em>: <a href=\"https:\/\/www.deeds.com\/articles\/how-to-do-a-home-sale-between-family-members\/\">How to Do a Home Sale Between Family Members<\/a> (May 20, 2022).<\/p>\n\n\n\n<p class=\"has-small-font-size\">And as linked.<\/p>\n\n\n\n<p class=\"has-small-font-size\">Photo credits (both): <a href=\"https:\/\/www.pexels.com\/photo\/a-woman-in-white-blazer-smiling-with-her-arms-crossed-8528852\/\" target=\"_blank\" rel=\"noreferrer noopener\">Karolina Grabowska<\/a>, via Pexels.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Recently, a D.C. schoolteacher was in the news after getting licensed as a real estate agent. Why was this newsworthy? Because her reason for getting licensed was to learn the ropes, stop renting, and buy a house in the burbs. Save the buyer\u2019s portion of 5% to 6% in agent commissions, get access to the [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[71],"tags":[],"class_list":["post-2886","post","type-post","status-publish","format-standard","hentry","category-general"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Would You Become a Real Estate Broker to Buy Your Own Home? - Deeds.com<\/title>\n<meta name=\"description\" content=\"Save the buyer\u2019s portion of 5% to 6% in agent commissions, get access to the Multiple Listing Service\u2026 Would you do it?\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.deeds.com\/articles\/would-you-become-a-real-estate-broker-to-buy-your-own-home\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Would You Become a Real Estate Broker to Buy Your Own Home? 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