Can A REALTOR® Sell Their Own Home?
UPDATED: May 15, 2024
Real estate agents spend a lot of time working with clients buying and selling homes. They study the market so they can help their clients price their property competitively to get the most value. Buyer’s agents spend hours looking for the right listing that checks all the boxes on their client’s wish list. But what happens when a real estate agent wants to sell their own property?
Can A Real Estate Agent Sell Their Own House?
The short answer is yes, a licensed real estate agent can sell their own property. There are no hard and fast rules for REALTORS® who want to sell their own property but there are best practices and a code of ethics that many adhere to.
The National Association of REALTORS® (NAR), the largest real estate trade organization in America, developed a code of ethics that states that agents who self-list property have an ethical duty to disclose their ownership of the property. When an agent advertises their home for sale, it should be noted in the listing description that the homeowner is also the listing agent or broker.
How Does A REALTOR® Sell Their Own Home?
A REALTOR® planning to sell their own property should speak with their broker to discuss how the sale should proceed and any best practices they need to be aware of before the listing goes live. Brokers and agents should do their due diligence and ensure that their errors and omissions insurance will cover the sale of a self-listed home.
Using the Multiple Listing Service (MLS)
If a REALTOR® wants to sell their own home, and they want the added exposure of listing the home on a multiple listing service (MLS), they can list the property as the listing agent. They will need to disclose their ownership of the home in the property description, so all interested parties are informed.
Receiving Commission On The Sale
In order for a real estate agent to receive commission on the sale of their own home, they'll need to factor both the listing agent’s and buyer’s agent sales commissions into the cost of selling their house. The commission from the sale is taxable income the agent will need to account for as well.
Listing As “For Sale By Owner” (FSBO)
A REALTOR® also has the option to sell their home For Sale By Owner (FSBO). The agent will still need to disclose their status as a licensed real estate professional when conducting business with potential buyers.
Because the agent isn’t involving their broker’s services with a FSBO home sale, they are considered the seller and not the listing agent. As a seller, they won’t collect a commission for the sale of the home. Sellers typically pay real estate agent commissions, so when considering a buyer’s offer, they’ll need to factor in the buyer’s agent commission if the offer is submitted by another REALTOR®. If the buyer doesn’t have a real estate agent, then there are no commissions to pay.
Are There Restrictions To Selling Your Own Home As A REALTOR®?
Whether they are a licensed broker or real estate sales agent, proper disclosure is vital when a REALTOR® decides to buy or sell personal real estate. All parties involved in the transaction should know the agent’s level of ownership to avoid any confusion as the transaction progresses.
Pros And Cons Of Selling Your Own Home As A REALTOR®
Even though REALTORS® buy and sell property for a living, there are a lot of factors to consider when selling their own property. Below are some advantages and disadvantages of self-listing a home as a real estate professional.
Pros Of Selling Your Own House
There are several reasons that real estate agents may opt to sell their own home.
Expertise in home selling: A REALTOR® who is actively working in the field every day may be just the expert they need to get the most value for their own home. An agent can intelligently communicate the home's features and benefits and set their own pricing strategy based on firsthand experience.
More control over the sales process: For some, having control over the process gives them peace of mind that all steps are being completed and the transaction is fully compliant with local and state law. A REALTOR® knows that every step of the process can affect the final home sale proceeds, so being engaged and prepared ensures the best possible outcome.
Ability to keep commission from the home sale: One of the biggest perks of being a real estate agent is saving money on your own home sale transaction. Commission is often a percentage of the sale price of a home and depending on the terms negotiated, an agent could save thousands of dollars in real estate commissions by listing on their own.
Cons Of Selling Your Own House
On the other hand, a licensed real estate agent should also consider some potential drawbacks to selling their own house rather than engaging the services of another REALTOR®.
Can take more time to sell: When selling their own home, the personal attachment to the home and their neighbors could make a self-listed seller a bit picky when it comes to the right buyer. They may be holding out for the perfect family with kids who will fit in great with their besties next door, which is great for the neighbors. But it could tack on weeks to their home sale timeline.
Might have less time to look for a new home: Self-listing a home is a lot like selling a client’s home. The agent will need to order photography and staging, manage scheduling home tours, answer calls and emails from leads and schedule any repairs and maintenance necessary. This may not leave a lot of time for the agent selling their property to look for their own new home.
Should A REALTOR® Sell Their Own Home Or Hire A Real Estate Agent?
Every home transaction is unique, just like every real estate professional.
It might seem like a no-brainer for a REALTOR® to sell their own home but buying and selling a home is no easy task. An agent will need to evaluate how much time and effort they can spend buying or selling their own real estate. Will they have enough time to properly market their property, honor their client commitments, set up open houses or showings and coordinate their own listing activity? If not, then it might be wise to hire a real estate agent who can do all of those things and more.
FAQs About Real Estate Agents Selling Their Own Home
Let’s look at a few of the most commonly asked questions regarding REALTORS® selling their own property.
Can a real estate agent make commission on their own home?
Typically, a REALTOR® does not make a commission when they sell their own home. This is because typically the seller of the house covers the listing and buyer’s agents’ commissions. However, if a real estate agent represents themselves when buying a home, they may be able to earn commission, which is usually wrapped into the purchase price of the house they are buying. The details should be covered in contract between the REALTOR® and their brokerage firm.
What does a REALTOR® need to disclose when selling their home?
Real estate agents should disclose their ownership of the home when they are in the process of selling their house. This is in line with the code of ethics adopted by the National Association of REALTORS® (NAR).
Do you need a REALTOR® to sell your home?
No, you do not have to hire a professional real estate agent to sell your home, even if you are a licensed REALTOR® yourself. However, it is often worthwhile to get professional help, as REALTORS® have more experience than the average person when it comes to navigating the home selling process. Plus, having a real estate agent on your side can help take the pressure off you and allow you to focus on your upcoming move.
The Bottom Line
A licensed real estate agent or broker can self-list their home but buying and selling real estate takes a lot of time and patience regardless of your level of expertise. An agent should discuss their plans to sell their home with their broker or office manager before they list their home. There may be office-specific local or state best practices that they may not be aware of. This will ensure the listing is ethical and compliant.
Are you ready to list your home? Get help from a local real estate agent today.
Carla Ayers
Carla is Section Editor for Rocket Homes and is a Realtor® with a background in commercial and residential property management, leasing and arts management. She has a Bachelors in Arts Marketing and Masters in Integrated Marketing & Communications from Eastern Michigan University.
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