[RMB48]

New builder here (new on my own, been PM'ing for some time now for other builders). Is it worth it to obtain my real estate license and work towards a brokerage or in your experiences has it been easy enough to sell without it?

 

[Agility]

I'm interested in this as well.

 

[Bearded Wonder]

Probably depends on how big your operation is. I've built a few specs and I just found the best realtor in town (as far as best marketer) and got her to sell them for 5% commission. I stuck to building, she handled selling.

If you're doing a whole neighborhood or something, it might be worthwhile to not be paying that commission on every house.

 

[RMB48]

With margins in my area being so low due to competing with the DR Hortons and such of the world, giving 5% away... yikes.

 

[Bearded Wonder]

With margins in my area being so low due to competing with the DR Hortons and such of the world, giving 5% away... yikes.

Good luck competing with them on anything related to price. I say, don't even try to compete with them. Build a cooler house than they do, on better property. Anything you can't see when the house is done is no frills (frame/HVAC/insulation/etc). Put your money into finish out. Market to people who don't want a cookie cutter house on a postage stamp lot. At least, that's worked pretty well for me.

And yes, 5% sucks if you're just looking at 5% of whatever. (If you're doing $500k or more houses, then forget everything I'm saying. I'm assuming you're talking $150-250k for some reason, but I don't know your location and market) But, if you figure interest per month on your money, and a realtor can sell it 2-3 months quicker than you can, then that offsets some of her fee. Plus, how much is your time worth? How much time will you have to spend taking pictures, posting the listing on the MLS and wherever, showing the house, etc?

What price range houses you talking here? Starter houses? Luxury homes? How many a year?

 

[RMB48]

Southern market, building homes in the 250-300 range, starter houses.

 

[greg24k]

I would get a Real Estate licensee if my wife didn't have one. I built she sells and we get some back from that end also.