Cutting relationship with Broker?

[GoUSC]

Need some advice from the brokers out there. I currently am represented by a broker who specializes in downtown. Although I like her and she is responsive I don’t think she is the right broker for some of the markets I am looking. I kind of inherited her because she was my girlfriends broker. What should I do? Is it okay to split brokers up based on market area? Or is that taboo. I also don’t think she is skilled enough at finding distressed buyers and really driving a hard bargain.

Any advice on this delicate situation would be appreciated.

[sdrealtor]

Too much at stake not to go with someone you feel comfortable with. Personally I refer out business in areas I dont know very well, particularly with buyers. I don’t feel like I can represent people’s absolute best interests properly in all areas. Unless you know the area well, you could easily put a client into a property with neighborhood issues that an outsider couldnt know. Thats not something I’m willing to risk for my clients. Life is too short and I am also not willing to spend my time driving to South Bay, East County, Temecula etc. Others feel differently and will go wherever the business is. SD R seems to spread his wings quite a bit and as far as I can see he does a good job for his clients. That probably isnt the case with most realtors. If she isnt up to the task, you need to get better representation.

[NotCranky]

I am an agent not a broker. If you really want to drive a hard bargain get your own license. Not that some agents won’t do it. But you can really work your parameters better for yourself if you have the time. It will be interesting to see if full time agents or brokers would knowingly split working with another agent. I would not. They might take the gamble in this slow market. Time is on your side as far as buying goes so you do have time to get a license if you have the inclination. It would cost you about $1500 including licensing and first year of dues. It cost me about $1000 a year to keep active. It would be about as difficult as taking a couple of Junior College elective classes. It was kind of fun. That is basically the way I got started. I found an independent broker who only takes 10% off of my commissions on properties for myself 20% for my clients. I have been to his office about 5 times in 8 years. We just use the phone, fax and computer to work together.
Good luck

[PerryChase]

Rustico, your post prompted me to lookup real estate licensing information. Good advice. It’s a small investment of time and money for anyone considering buying property. If anything, the knowledge gained from going through the process is well worth it.

It looks like anyone who can pass the 3 real estate classes and the exam can get a RE license. Should be easy for anyone with a high school education. Lawyers automatically qualify.
http://www.dre.cahwnet.gov/saleslic.htm

http://www.dre.cahwnet.gov/forms/re435a.pdf
http://www.dre.cahwnet.gov/forms/re206.pdf

[NotCranky]

Perry,
I passed the three hour test in 30 minutes after working on practice tests in a very minimal way. I had no previous experience with business or financial subjects.
You have at least the equivalent mental faculties as me.
In short…anybody can get the license except convicted Felons. Being successful in RE sales through the ups and downs is more about having a winning personality.Apparently fake boobs and shallow integrity doesn’t hurt either.
Your’s truly is a bit more on the genuine but difficult side,
no boobs at all.
Still,all and all, getting the license has been a good thing.

[SD Realtor]

radelow it is not hard to change your agent. Have you signed a buyers representation agreement with them? I assume you are looking for a home, not selling a home. I was a little puzzled because you mentioned distressed buyers but I assume you mean distressed sellers. Anyways if you have not signed any representation agreement then you do not have to do a thing. If this agent has put in alot of work and showed you lots of homes, it would be courteous of you to be honest and let the agent know you are planning to move on. You can ask this agent to refer you to another agent who is more familiar with the neighborhoods you want to investigate. Don’t worry about the commissions, let the agents work it out themselves. If you are under a representation contract then simply ask the agent to cancel it. The cancellation document is a 1 page form. If the agent gives you grief be very nice to them but firm and let them know if need be, then you will forward your request to the broker. The most important aspect (IMO) about working with an agent is working with someone you trust and feel comfortable with. Don’t be afraid to interview many different agents. Ask them about the things that are important to you, the neighborhood, their skill level and experience, if you want a rebate or not, where they specialize in… etc… It seems to me by what you mentioned above, knowledge of the specific neighborhood is very important to you. So then drive out to the brokerages in that neighborhood and go into the offices there and ask for a dedicated buyers agent that is familiar with the area. Ask for references and call them up… I cannot urge you strongly enough to do this. If the agent is good, then the references will be the strongest asset for them. If you do your due diligence you will find someone out there you trust and like.

[4plexowner]

Rustico – have you seen any downside to getting your license?

When you disclose that you are an agent does the seller’s attitude change?

You have to disclose that you are an agent when you make an offer correct?

[NotCranky]

4plex owner
Downside to getting my license…I am a little embarassed at times to say I am a Realtor.I don’t even have a business card. I usually say I have a Real Estate License!There are some great people that practice Real Estate in more standard ways,so I mean no offense to any individuals. There have been years when I didn’t sell or buy anything yet I paid the dues & MLS.This has been covered many times over by better years though and especially by terrific deals I have gotten. I don’t pay commission when I sell that is a huge advantage.
As far as the sellers attitudes …well money talks bs walks. I use a one page letter of intent to make non-binding offers under specific terms. I send them out on as many as 10 different properties at a time, If you get a bite then you work with it. Any day of the year I can get 10%-%20 under market for my goals. The key is to stick to your parameters and keep emotions in perspective..Very often the best deal out there is at or near full price. Some people just list low. If the opportunity is there you jump on it because you have your finger on the pulse of the market all the time. I always want what the seller is selling plus opportunity that I see that other people are overlooking or don’t care about.Then I sacrifice and work like hell.Look I am small time but this stuff works and my main goal is to stay away from a real job. When I write an offer for myself I leave the commission in the deal and take it out as the negotiations are closer to final. It drops my taxable income and lowers the property tax base, barely.I am not going to mislead you I am small time but it works and as someone who started from scratch everything helps. Anyway I am a natural borne do it yourselfer. Hopefully I am getting my stride going into a better market for my style and skills.Also I pick up the occaisional buyer who for what ever reason connects with me. Because of the strength of the connection I have nearly a 100% client to sale ratio. I give rebates ,roughly on a sliding scale with purchase price. In turn they don’t expect me to do things I would rater not do like pre-screen million houses. I have basically refused to sell anything to anybody since spring 2004. I have three clients (buyer’s right now) and I am telling them time is on their side.I tell them to check into this site. One is looking for a business deal,rehab and rental and he will probably be first to go because he can get ahead of the curve whereas someone looking for a “dream home” is just stuck basically if they are also fiscally conservative.
Forgive me for writing more than you asked for. I just felt like being helpful to anyone reading who might be inclined to do as I have done, or something like it. Also if you already own a 4plex you will probably want to go for it and get your license. Maybe you could take property management along with licensing courses if you haven’t already?
Best wishes.

[hammer]

Sales exam is much easier than brokers exam. I have taken both. It will still take approx 5 months to get because they will space out your 3 requisite classes, and your exam date will be 6 weeks out from application.
Classes are online and open book. Very simple.
Good luck if you decide to get your sales license. As an agent, you will still have to hang it underneath a broker.

[SD Realtor]

Yes you do have to disclose that you are licensed by the state no matter what size of the transaction you are on.

Like Rustico, I got my original license initially for my own purposes. In my case I was tired of paying my sister in law full commissions for my own transaction.

SD Realtor

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