I have recently passed my Illinois broker examination and have a temporary 45 day card to practice real estate until the license arrives. I am a "self-sponsored" broker, so I am not with any company and I also do not have anyone working for me.

My fiance and I are in the market for a new home this summer. My idea was to get my broker's license, act as my own buyer's agent, and receive the buyer's side commission on our home purchase with a secondary goal of purchasing investment properties in the next 2-3 years. I am also considering going into real estate part or full-time. I am not a member of the realtor association due to a first year cost of over $1100, so I cannot use their standard contract forms.

My main questions are the following:

How do I let the listing agent know I want to receive the buyer's side commission? Is this supposed to be included in the purchase offer, or is it a separate contract between the listing agent and I?

Since I am not in the realtor association, I do not have a lockbox key. I am planning on calling the listing agent, explaining that I am a broker representing myself, and asking for a showing. Does that sound like the right way to approach this?

This board seems very helpful and knowledgeable. Any other advice or "gotchas" would be greatly appreciated!

THINK IF YOU WANT TO PLAY, YOU NEED TO JOIN THE TEAM?

Are you asking me a question?

I think the "Ask an Expert" board might be a more appropriate place for this thread, so I will be posting this thread there.

I would join the board.

How can you expect to effectively find a house for yourself if you don't have a lock box key or MLS access?

Let's just say you'd like to see 5 homes today. Are you going to call each of the 5 listing agents and explain to each and everyone of them your situation? And how many of those 5 agents do you think will take you seriously?

The only way to approach this is to join the local RE association,pay your MLS dues, buy your lock box key, buy your forms,study the forms,write your offer and finally, submit your offer stating that you are a licensed RE Broker representing yourself.

Once your offer gets accepted buy a fax machine.

My feelings, exactly. Right on-
Fly Fisher!

have it in the contract

I should probably start a new thread for this, but is it that easy to get a broker's license in other states? In mine you have to have been an agent for at least 2 years with at least 20 transactions (which is actually 40 transaction sides) and you have to have the eqivalent of an associates degree.

You should definitely make sure it is in the contract since the co-op in the MLS is being offered to members of that local board (at least that's the way it is in my market). I have had clients looking in areas outside of my board's area and I make sure to let the listing agent know that I am not a member of their board and ask up front if the co-op is going to be a problem. Since this happens both ways, I have never had a problem, but make sure it's in writing.

If you are really considering doing real estate (even part-time) as a business, I think it would be a good idea to join your local board. Buyers are not going to want to work with you when they find out that you can't even get them into a house without the listing agent and sellers certainly won't want to list with you if they aren't going to be in the MLS.

In Illinois, there are no agent or transaction requirements. You can sponsor yourself and go straight for the broker license. The education requirement is graduating high school or a GED.

Thanks for the tip. When you get the co-op agreement in writing, do you put it in the offer or draft a seperate agreement with the listing agents broker?

Also, if I ever represent anyone besides myself, I would definately join my realtors board. I understand what you're saying and I agree, but at $1100/year (without lockbox key) for one transaction, it seems a little steep. Thanks again for your advice.

I put it in the offer, but I am using the standard contract approved by my local board when I do it. I have heard that when certain discount brokers get offers with the co-op in the offer, they advise their clients to treat it as a negotiable item. I'd normally tell you to ask your broker, but since you are the broker, I'll say good luck.

It should be done in a seperate agreement with you and the listing brokerage. Not as part of the offer! The agreement with the listing broker should state that your 50% of the agreed upon commission percentage will be credited back to you toward your purchase and closing costs. This is an agreement between you and the listing brokerage and not between you and the seller as he will be paying that commission regardless of who would purchase his house.

Yes and no, at least in my area. The listing contract depicts the commissions and their split. The listing brokerage can do what they want with their portion, but they must disperse according to the listing contract. If however a sitaution arises where the buyers agent is not liscensed by a recognized association, then our laws prohibit us from dispersing towards them. Those funds will then be held in trust until a judgement is made regarding dispersal. A written agreement between a non recognized board will NOT overrule, as the brokerage is liable within our bylaws, should a dispute arise.

If you are not a memeber of the local board, you will not likely be recieving any comm split.

The easiest way would be to negotiate for the seller to amend the listing agreement, then agree on a reduced price, but I just can't see where the motivation would be for the seller/representing agent to work at stuffing your pockets, unless your bringing something really good to the table. Until your registered, your just another buyer.

"I understand what you're saying and I agree, but at $1100/year (without lockbox key) for one transaction, it seems a little steep."
Our board dues and lock box fees are pro-rated quarterly, maybe yours are also?