Every year hundreds of California residents apply to take the California State Real Estate exam and many are successful in passing the exam, then becoming licensed. There are any number of reasons for becoming licensed, many of which are not for the purpose of making real estate sales a full-time profession.

Investors often find it advantageous to be licensed, and then there are some people that just want a license should they suddenly opt for a career change. Occasionally, a family member will get a license merely to represent other members of the family. The reasons go on and on. The facts are rather interesting, proving that the average licensed agent in California closes three and one-half transactions per year. All this information is fine and good; however, all too often people can become blinded by the notion of keeping the real estate commission in the family or among friends. Even though it has been known and proven for years that one should never mix business and friendship, people still think, "It could never happen to me." And "Our situation is different." It is that feeling of obligation...and also of a friend's expectation that often creates the driving force to the nightmare that should not have happened.

Before making what appears to be the "obvious decision," step back from the situation long enough to consider several facts:

1. Buying and selling a home is one of the biggest, if not the biggest, business transactions a person makes in a lifetime.
2. The asset in question is one of the most, if not the most, expensive asset a person trades in a lifetime.
3. If your friend is going to sever a friendship over your decision of whether or not to have him/her represent you, is that person really your friend?
4. If this friend were not your friend, based on his or her track record would he or she really be your best choice for an agent, or might there be someone better qualified?
5. If saving part of a commission is going to cost you twice that amount before the transaction is over, are you saving or losing?

Remember, selling or buying a home can be complex. Negotiating skills, marketing skills, experience and neighborhood expertise can make a huge difference in the price you receive, and in your overall success in closing the transaction without a hitch. In this very litigious era, don't compromise the knowledge or the experience and later on regret it! Be strong and stand up to what makes the best sense. Hire your best agent, not your best friend.

As an alternative to spoiling a good friendship, speak with the neighborhood agent of your choice and perhaps see if that agent might be willing to pay a referral fee to your friend, still keeping that "arm's length" distance between business and friendship. After all, do you really want your friend knowing all the personal and financial issues that might come up in the course of buying or selling?