The Difference Between A Real Estate Agent and Investor | Sell My House Easy Fast (2024)

FAQs

The Difference Between A Real Estate Agent and Investor | Sell My House Easy Fast? ›

The only difference is that they have different ways of doing it. For instance, the agents are able to earn around 1-5 percent of commission on every sale facilitated by them. On the other hand, investors usually decide how much they wish to earn through a particular real estate deal.

Real Estate Agents Need a License

In order to ensure that the agent is honest, he or she has to follow a certain set of guidelines that the license mandates. In contrast, a real estate investor is someone who buys and sells properties for himself or herself; the investor does not represent anyone else.

Yes, selling to a real estate investor can be an excellent plan – especially if you need to sell your place quickly, your house needs considerable repairs, you're going through a divorce, the bank is preparing to foreclose on your property, or any number of additional reasons apply.

The agent will make more money on higher sales prices, naturally. The investor, on the other hand, does not make a commission. Instead, they will make money by finding deals where they are able to get the properties at a good price. They will then find ways to make money from the property.

Agents are experts in what makes homes sell. They can walk through your home, make changes that attract buyers, and get the best offers. They can also help you determine which feedback from potential buyers you should act on to improve its chances of selling.

Real estate investors purchase real estate with the intention of holding properties and gaining financial return. Typically, real estate dealers acquire and sell real estate as part of their everyday business.

A real estate investor invests capital in property. You buy and sell properties, manipulate their valuation, collect rents, and lobby politicians and governmental land-use agencies to realize a profit. You may work alone as an individual investor, with a partner, or as part of a network of investors.

ARV: The ARV, or after-repair-value, is how much the property will go for on the open market after renovations have been made. 70% Rule: Investors use the 70% rule to determine their maximum cash offer for the property. They do this by multiplying the ARV by 70% and then subtracting renovation expenses.

Potential for below market value offers:

Investors are looking for properties with profit potential, so they usually make offers below market value. While maximizing profit benefits the homeowner, selling for less can be acceptable if you have more pressing priorities.

“Investors are not protected by state or federal Fair Housing Laws, so if a seller refuses to sell to an investor, that is the seller's right.” For individual sellers, it can be tough to turn down investors' offers — especially when they're the highest bids by a long shot.

How much do most real estate investors make? ›

Out of the 250 top producing agents identified in the Real Trends survey, the following percentages of agents are found in the following five states: California: 44% New York State: 24% Florida: 7%

To get the best price possible, you should sell through a good local estate agent. To get the fastest sale possible, you should sell to a cash house buying company. For a good balance of speed and price, you should sell by auction (especially if your property has some issues).

Your real estate agent knows and understands the local market, so it's easier for them to set an accurate listing price for your home. They can also recommend repairs or quick enhancements that will help your home sell faster and for more money. They also know how to market your home.

The most common way to make money in real estate is through appreciation, an increase in the property's value. Location, development, and improvements determine real estate appreciation. Real estate investors commonly rely on income from rents for residential and commercial properties.

According to Nicolais, real estate investing is a career that offers advantages you won't find in many other types of work.

Investing in real estate can be a good idea if done thoughtfully and strategically. It offers the potential for steady income, capital appreciation and tax benefits. However, it's not without its challenges, including high initial costs, property management responsibilities and market risks.

Investing in real estate can be a success, but going it alone can be challenging and highly risky. Joint ventures, wholesaling, and property management are just a few ways investors can profit from real estate. It also takes a little savvy to become successful in this highly competitive sector.