I am in Real Estate School, will be graduating soon. Then I will take a State test and will look for a broker.
I need to sell our house this spring and buy another before September 2009. I understand if I work for a broker I can't sell it FSBO? Do you think it will be a good idea to sell it myself before finding a broker so I can save a commission? Or is it better to sell it working for a broker and getting all the support I need in selling a house, getting my part of the commission saved and getting experience I will need in future job?
Thank you for your advice!

if you want ot be an agent but dont see the value in using an agent for you own sale, why become one?

how will you be able to sell your services of home selling to someone if you cant sell the need for using an agent to yourself?

WHERE did you get that understanding ?

By Law, You would probably have to reveal your Status as a Tennessee Licensee to any potential Buyer; but eliminating your "Freedom" to sell your own property without having it listed (i.e. FSBO), if it is a rule of any kind, then it is probably a Broker imposed rule . . . . which would be a Red Flag to me; and of questionable legality, even in Tennessee.

Like ER, I would want to list my own property and get it into MLS and I would very pleased to have the Selling Side of the Commission be paid to a Co-Operating Agent who became the Procuring Cause on the sale of my property.

On the Listing side, most Brokers will exempt the Agent's own property from being subjected to the House Split, and waive that portion of the Commission; but not all will do this. Even though you would be the Listing Agent, you will obviously be consuming some of the Broker's Marketing Resources . . . . Nothing is Free !

[quote=estatereal]if you want ot be an agent but dont see the value in using an agent for you own sale, why become one?

how will you be able to sell your services of home selling to someone if you cant sell the need for using an agent to yourself? [/quote]
I understand the value of using an agent, I just don't want to share the commission if I don't have to. I am going to be an agent no matter how it would be sold, but if I sell it FSBO-I wouldn't have to pay the broker and possibly the buyer's agent. I just think it might be worth sharing if I can get help from the broker in teaching me what to do? Because I probably will not get any other listings for a while ( as a new agent)

[quote=Vermont][quote=greenrealtor]I understand if I work for a broker I can't sell it FSBO?[/quote][b]WHERE[/b] did you get that understanding ?

You would probably have to reveal your Status as a Licensee to any potential Buyer; but eliminating your "Freedom" to sell your own property without having it listed (i.e. FSBO), if it is a rule of any kind, then it is probably a Broker imposed rule . . . . which would be a [b]Red Flag[/b]; and of questionable legality.

Like ER, I would want to list my own property and get it into MLS and I would very pleased to have the Sales side of the Commission be paid to a Co-Operating Agent who became the Procuring Cause on the sale of my property.

On the Listing side, most Brokers exempt the Agent's own property from being subjected to the House Split; but not all, and you will be consuming Marketing Resources. [/quote]
I don't remember where I got that understanding, but I am glad I was wrong. I can just go and find me a job after State exam without worrying about splitting a commission) I will ask the broker what is his (her) policy regarding agent's house sale. I was going to put it on MLS for a flat fee rate and do all the marketing myself.

It seems we had a similar discussion on the forum a few months back.

If you are coming into the business as a new agent and decide to sell FSBO rather than using the benefits of being in the business (MLS, broker name recognition, etc.) it look to the public as if you do not believe in your career choice. You will likely loose several times over on cumlative future business anything you might hope to save by choosing FSBO.

how does this sound when put into its simplest form....i sold my house myself because i did not want to pay a greedy agent, but i would be happy to have you pay me to sell your home.

reality is that if you look at stats the listing agent probably wont sell the house and that is using all of the professional tools to sell a home. chances are a cooperating agent will bring in the buyer. well worth the money!

Thank you all so much for your help!
I will not sell it FSBO. I just was considering it and wanted to know professional opinion.

Good call greenrealtor! I used to work FSBO's pretty hard and I can tell you that due to the exposure of using an agent the chances of getting a higher price is much greater. Statistically speaking, you will come out ahead! Good luck to you in your new RE career.

you could list your home with a flat-fee broker or FSBO broker just before you hang your new license with a broker. LOL

[quote=estatereal]Good call greenrealtor! I used to work FSBO's pretty hard and I can tell you that due to the exposure of using an agent the chances of getting a higher price is much greater. Statistically speaking, you will come out ahead! Good luck to you in your new RE career. [/quote]
Thank you very much!

I'm supposing your financing ability will not change with this new job?

[quote=Merkaba]I'm supposing your financing ability will not change with this new job? [/quote]
Probably not for a few month. Why are you asking?

You should sell it yourself after you get your license and join a firm. I am also from the Nashville area and you will have to disclose that you are an owner agent. Check with your broker to make sure that your E&O insurance will cover you when selling your own home,If so list the house yourself with proper disclosures, every call that you receive on your house is a lead for you. Why give it to someone else? Use your home as a source for growing your business and learning the skills of becoming a good Realtor. As a listing agent myself, I expect at least three new pieces of business off of every house I list. So if you allow someone else to list your home, that could be four transactions you miss out on, not including yours. =0)

I recently sold my own home. I listed it in MLS and paid a 3.5% commission to the co-broke. I've been selling for 17 years and realize that there's no way I can generate as much activity as 5,000+ agents. My definition of FSBO is "not realistically priced and not seriously for sale".

[quote=soldbyc21]You should sell it yourself after you get your license and join a firm. I am also from the Nashville area and you will have to disclose that you are an owner agent. Check with your broker to make sure that your E&O insurance will cover you when selling your own home,If so list the house yourself with proper disclosures, every call that you receive on your house is a lead for you. Why give it to someone else? Use your home as a source for growing your business and learning the skills of becoming a good Realtor. As a listing agent myself, I expect at least three new pieces of business off of every house I list. So if you allow someone else to list your home, that could be four transactions you miss out on, not including yours. =0) [/quote]
I wasn't going give it to somebody else to sell, I was going to sell it by myself. The question was should I sell it FSBO or as an agent. Thank you for the advice on E&O insurance! I am glad to see someone else here from Nashville!

It sounds as if your question's been answered, but just one more thought - you will likely pay a buyer's agent whether you FSBO or not. Most serious buyers have an agent if you want those buyers to consider your house, you'll need to be willing to pay a co-op.

The E&O issue is serious - there's a guy in my office who is being sued for $250k as a result of selling his own property and his E&O won't cover it. It's destroyed his life.

[quote=Jennifer Allan]
The E&O issue is serious - there's a guy in my office who is being sued for $250k as a result of selling his own property and his E&O won't cover it. It's destroyed his life. [/quote]

It is terrible! Is he a new agent? How could it happend? Is it a part of broker not getting his part of a commission and therefore not giving any support? Sounds strange. What could you possibly do wrong to get sued for $250k?

It's a bizarre situation, and no, he's not new. He just ran into a very greedy buyer who found a lawyer to take on a crazy case. The broker was sued as well (separately), and so my friend, per his ICA, is liable for the broker's legal fees as well ($50,000). His own legal fees to date are around $70k and the case hasn't even gone to trial yet. The buyer is suing over a repair in the house he says wasn't done properly - but even if it wasn't (which is up for debate), to completely tear it out and start over would cost around $15k which my friend offered to do. Where the $250k came from is a huge mystery to everyone who has looked at the situation.

The plaintiff's lawyer has admitted that they're just hoping for some insurance money, which my friend can't offer since his E&O won't cover it, but in the meantime, his legal fees keep mounting. It's very scary!