The Difference Between Selling to an Investor VS. with an Agent

There are some agents that are investors and some investors that are agents. If you’re reading this post it probably means you are looking to sell fast for as much in your pocket at closing as possible. You may have weighed the costs of paying a real estate agent’s commission and selling for a little cheaper straight out to an investor. The Difference Between Selling to an Investor VS. with an Agent

I’ve seen lots of real estate agents that do a little investing on the side and investors that have their real estate license should they need it. But really what’s the difference when it comes to the homeowner needing to sell?

A real estate agent or broker (also referred to as a Realtor® in some cases even though this is a certification that not all agents and brokers need to have) must be licensed. They must have completed the real estate course and passed the test in order to be an agent. Becoming a broker is a further test after an agent has been licensed for at least two years.  Brokers can open their own brokerages or work for another broker; agents must work under an existing brokerage.

An investor is simply someone that buys and sells properties for a profit. I know, sounds a lot like a real estate agent but unlike an agent, the investor receives his profit from the sale of the property regardless of how much that is and an agent or broker receives a commission based on a percentage previously agreed upon from the sale price of the property. The real estate agent or broker gets paid when the property sells, the investor gets paid once the property is fixed up and sells. Depending on the market, the upgrades and condition of the property at the time of purchase and the time of sale, it could be a lot of money.

[Read more: What’s the Real Cost of Having an Agent Sell Your House?]

If you sell to an investor you won’t have to do any fix-ups and you won’t have to pay a real estate agent a commission for selling the property. If you sell using an agent, there is no guarantee you will find a buyer. If you do, the home inspection process may prompt the buyer to require certain repairs before they finalize the purchase.  You may or may not be able to sell with an agent and you still would have to do some repairs. 

But can’t I list the property “as-is”?

Yes, you can. But, buyers can still ask for things and if those items are not repaired, you may sit on the market for a long time. I’ve seen this before where homeowners want to sell for more so they list with an agent but then they don’t make any repairs or necessary updates and the house sits on the market so long that the price drops and drops to the point where they are losing money now AND they still have to pay the Realtor’s® commission!

Selling to an investor may not provide you with the same profit as selling with an agent but then again, if you save the commission fees AND can sell outright as-is, it’s really a better deal all around.

Do you have a home that you need to sell and you don’t want to mess with an agent, commission or repairing anything? Call me now. You might be pleasantly surprised as to the profit you receive and the load of stress off your plate.

[Read More: Why Sell to an Investor?]

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