Real Estate Sales License

[Doug in NC]

I am considering the thought of supplementing my income with a sales license. For those of you who already do both sales and appraisal, is there a downside to holding both licenses?

Considering that I already pay most of the fees involved in having a sales license, I figure why not get both. Even some of the CE courses count for both licenses. If nothing else, I may be able to save myself a few thousand $$$ if I were to purchase an investment property.

 

[Richard Carlsen]

To quote the Good Book; a man cannot serve two masters.

I have a brokers license (sales since 75, broker since 80). If I were to take up selling and go into competition with the brokers in my service area, a whole lot of my referral business would dry up. For me it is not worth the hassle or the loss of business.

If you just want one to have a real estate license, get it. Find yourself a non-MLS broker who will let you hang it on the wall. You will learn something about the broker mentality by taking the con ed.

However, I don't think it is a good way of supplementing your income. The time you take away from your primary business (appraisal) would not make up for the lost work.

 

[Mike Simpson]

I just sent PM to a favorite Forumite;

The sale of a (ONE) median priced home brings us the equivalent of 11 appraisal orders (assuming one could even collect ).

22 appraisal orders should you make your office split.

44 appraisal orders should you serve as a dual agent (perfectly legal in this State @ this time). Some states...I don't think it is legal?

I'm typing appraisals while sitting open houses. Meeting buyers, potential sellers, and investors while I work.

Business is brisk right now...I think it's a rush to beat what many believe will be rising interest rates.

We're suddenly a hot ticket & are running out of time & inclination to appraise. I'm in the field much more & meeting many more people than I use to.

Best of luck (be careful what you ask for), and drink plenty of Chamomile tea to help you sleep.

-Mike

 

[Doug in NC]

I don't see myself pursuing sales aggressively, actually, I am more interested in RE investing; the commission I would save in a sales transaction could go toward closing costs or profit. I also know of another appraiser who primarily just forwards referrals and makes a couple thouand $$$ extra each year. The appraisal industry is competitive enough, I can't imagine going head to head with a gazillion realtors who are already out there.

Mike, I knew you would chime in here. Glad its working out for you!

 

[Mountain Man]

Like Mike, I do both. Most of my bank clients aren't local, they are in an adjoining town, so I have yet run into a conflict. And my experience has been the opposite of what Richard noted.... appraisal referrals from local brokers has picked up!! When they want to really know, they know who to call...... they know my quality of work and experience. But they also still call the local skippy when they need that number.

I also enjoy buying foreclosures, remodeling them, and selling them. So yes.... I have pushed appraising back to when it's convenient for me. If I'm working with a customer, or remodeling a house, appraising is on the back burner. I give my best bank clients one week turn time, and they are very happy with that. The management companies that require 24 hour turn times are SOL in my book. Hey, I just look at what will make more money. Right now, residential appraising is not it. I'm advancing and concentrating on commercial appraising, brokerage, and remodeling. But still doing residential appraising just to keep a regular paycheck rolling in until I can cut it out totally.

 

[Mountain Man]

BTW Doug, being a broker, it is fun to go to a Freddie auction and get paid to buy a foreclosure.

The down side to having a broker's license is all the additional disclosures you MUST make when buying, selling, and renting. I don't know why all the disclosures are required when you have a sales licence, but not required for appraisers license.

I say go for it. You’ll be able to make a few thousand each year, which will more than pay for the additional license fees.

 

[Bobby Bucks]

I usually pocket some extra change each year which more than pays for my MLS fees. I stopped the listing game, too many hassles. I work for buyers occasionally when I know them personally and I know it will take minimal time. I also find sites and undeveloped land for builder buddy as a buyer agent for a flat fee. Works great because he’s doing most of the looking. If I find it for him, the fee is higher. When I buy something personally, when a counter offer is made, I counter and take my commission off the top save $1. I’ve found to do it on the initial offer confuses the seller.It’s a bargaining chip and better tax wise. I know some people who balance appraising and list/sell, but it’s not for me.

 

[Mike Boyd]

Doug,

It depends on your focus. When I was appraising full time I personally found it to be a conflict of interest. However, if you act as a buyer's agent only and do not compete in the listing department, you will be all right as long as you have the time and energy.

Mike

 

[TC]

Scary thought boys and girls but my experience is similar to Double B. I've had my brokers license since the late 70's and still need it to gain MLS access. Like Bobby, I use it for purchasing investment property, a great hedge when times are slow, like now, and to help out a friend who doesn't want the hassle of dealling with a Realtor. Sounds like Mr. Simpson has the right balance, but personally, I don't think I have the energy to do both.

TC

 

[Mike Simpson]

"Mike, I knew you would chime in here. Glad its working out for you!"

Thanks Doug!

I'm doing an appraisal currently (REO)--one of my potential comps sold last September (also REO) for $142,500. An investor purchased it...refinished the hardwoods under the carpet, interior/exterior paint, new roof & a few minor upgrades & resold it for $182,000. Straight up deal as far as I can tell--nothing insidious about it.

I'm meeting an investor this evening @ a distressed property & have numerous investor contacts at this juncture.

"Sounds like Mr. Simpson has the right balance, but personally, I don't think I have the energy to do both."

Appraising (@ least right now) is just getting in the way...I can't do both. My wife's the balance...we couldn't do it without the other.

Best of luck & success to all ethical appraisers...you (beyond) deserve it!!!

-Mike