physician investor
They’re usually asking this for several reasons: 1) To save money on commissions for the sale of their own home 2) To receive the commission when purchasing their own home or a rental property 3) Thinking it might help to attain Real Estate Professional Status (REPS)
My original decision to get my license was to learn more about the purchase and sale process and perhaps save some money on commissions.
But since then, it has evolved into helping physicians purchase their dream home by connecting them to the very best resources available today.
Whether you’re a buyer, seller, or investor in a deal, it’s crucial to understand the terms and conditions of the purchase contract. Getting your license will help learn the background behind the terms you agree to while entering a contract.
When it comes to residential homes, the commission for agents varies, but they usually range between 5-6% to be split evenly between the agents on both sides.
Having a real estate license can give you access to the Multiple Listing Service (MLS), which all agents use to spot new properties on the market.
Let’s take a look at some of the reasons that might make you turn the other way:
There are plenty of costs associated with getting your license, such as examination fees, prep courses, license renewal fees, MLS subscription fees, real estate board fees, and so on.
When you’re representing yourself, especially during a property sale, you’re held to a higher standard and exposed to additional liability.
Unless you get your broker’s license, you must work with a broker and give up their share of the commission, which can range anywhere between 10-50% depending on where you hang your license.
Once you have your license, you’ll be writing your own offers and submitting paperwork to agents, brokers, lawyers, and the MLS.
It feels quite different to negotiate directly on a real estate transaction when it’s primarily all about numbers.