I'm a licensed sales agent in California and I've been in the business less than a year, and even attended several seminars from our Association of Realtor, but I can't seem to get a straight answer.

If I want to sell my own house, can I do it myself, and not go through a broker? What's the consequences? I do not see any advantages of going through a broker when it's my own house, and I am doing everything, but I might be missing something.

Can I also represent myself if I want to buy a house? If not, why not?

No legal advice intended, this is a general opinion, I don't know your state laws.
About selling your own house----You can sell it yourself with full disclosure that you are a licensed agent. What are you missing? For one, your broker may have policies about selling your own house. How does it look to the general public that you are asking for their business, but won't even list your own house? Most agents list their own houses that I know of. Some brokers give their agents a break on commission.
I have represented myself on buying houses. I see no reason why not. However, you may run into some problems if you buy your own listing, which I would recommend you not do because of conflict. When buying, I find that it works best if I don't take a commission, and reduce the offering price by that amount and put this in writing.

Also, I might add that in buying or selling you must always disclose that you are a licensed agent, whether or not the property is listed.

Ky realtor's advice was right on target.

So Vickie,
Just how is it going to look to your neighbors and friends that you are gonna sell as a FSBO? Now that sends a real good message to your potential clients.

Your broker may also have some rules against you selling FSBO.

Your broker most likely will not charge you to list except for the co-op fee and maybe a transaction fee. You can decide to charge your self no commission so you will not get taxed on it.

Talk to your Broker..

Why would you not want to go through your broker? I don't understand? Unless you don't get a 100% 'split'*, why would you want to go-it-alone?


*not exactly a 'split' at 100%. how else would this be said?

Regardless of your split with a broker most will exempt the home if it was your residence and only charge a minimal transaction fee for office resources used.

Excellent feedback, everyone.

For what it is worth, I guess I call mine a 100% split because I get 100% and my broker gets 0%, so that is how we "split" it.

Will you have E&O coverage as a FSBO?

It does not matter if it is FSBO or listed property. Your E&O is not going to cover you as a principle in the transaction.

Paul, mine does, (Williams Underwriting) it says:
Personal Residence
Coverage for the sale or listing of your primary residence provided the sale or listing is performed under the real estate license laws of Colorado. Does not include For Sale By Owner sales or listings.

If you get sued on the sale of your own residence it will more than likely be something not covered by your E&O insurance. Your E&O is only going to cover your Realtor dutes, Not anything dealing with you as the homeowner. I could be mistaken in this but I do not think so. Call your underwriter and ask what thinks would not be covered.

With my home owners hat on, I'd say that's a correct statement.
With my agent hat on, my E&O insurance covers me.
I did not see any restrictions in the policy when selling owner/agent or any difference from buying/selling in standard daily RE activity.
Policy: http://www.wugieo.com/PDF/CO-Policy-05.pdf
(the state sponsored E&O (Rice Co.) does not cover owner/agents sale of personal residence)

In California...if you want to sell and buy your own house, you do NOT need to enlist the services of a licensee. It's called "principal activity" and a license is not required.

You will be bound to the duty of a homeowner.
EO insurance is not required in California.

Just go the RE regs and make sure you make all the proper disclosures. http://www.dre.ca.gov/regs_sub.htm

Oakenfold,
What you fail to grasp is that Vickie's broker will likely have a policy regarding this activity that was most likely addressed in the agents IC agreement.
If Vickie fails to see the value of listing her own home I suggest that she may be in the wrong business.