My Utterz post about real estate licensing had some formatting issues. If you want to hear the entire audio, go here.
Meet Me at NARdi Gras!
Read the Zebra on AgentGenius
Disclaimer
My name is Daniel Rothamel. I am a licensed real estate agent in the Commonwealth of Virginia and a member of the National Association of REALTORS. As such, I adhere to a strict code of ethics and all laws with regard to equal housing, which is reflected in the content of this blog. My broker is Strong Team REALTORS, 86 Joshua Lane, Palmyra, VA 22963; (434) 589-5800. My VA Real Estate License number is 0225 077325. All of the opinions in this blog are mine, unless otherwise noted.
{ 3 comments… read them below or add one }
I don’t think that, under the current system, separate licenses are needed. To the best of my knowledge, a commercial agent can just as freely go and sell residential as a residential agent can go and sell commercial. The consumer is the one who should decide who they want to work with – I’m not qualified to sell certain commercial properties, not because I don’t have the license but because I don’t feel I have the expertise to provide to my clients. One of my business partners does, however, so all commercial clients are funneled through him. His background in commercial leasing and management give him a much broader perspective to offer our clients.
It’s an issue of “you can’t be everything to everyone”. Or “do a few things and do them well”. Either one works, but the point is that we don’t need multiple licenses.
Separate licenses would almost certainly better serve consumers — it would prevent residential agents from doing commercial work when it’s not their expertise, and vice versa. The only downside is to the agent who wants work outside of their expertise.
I imagine that with such a change it would be possible to acquire both licenses — perhaps contingent upon having a brokers license instead of a salesperson license. Thus, with the ability to obtain both licenses, it wouldn’t overly restrict agents from pursuing the type of business they desire.
I am a commercial Realtor and I like the idea of separate licenses for residential and commercial real estate. Having practiced both in my 10 year career, I can tell you they are completely different skill sets to succeed. Commercial is much more analytical and finance based (Cap Rates, IRR, NOI, etc…) and contracts are much more complicated. Commercial licensing courses should focus on financial analysis of real estate and contract law.