If you’re thinking of selling, you’ll likely connect with people who want to help. Some will be agents and some will be investors. Check out this blog post to read about 3 ways to tell real estate agents and investors apart in South Bend, Mishawaka, Elkhart, Goshen, Granger, Osceola, Michigan City, La Porte, New Carlisle, Walkerton, and help you understand why you might want to work with one versus the other…
Thinking about selling your house? You might be approached by a bunch of different people who all offer to help you sell. But not everyone who offers to help will help in the same way. Some are real estate agents, other are real estate investors and they’ll help you in different ways. Here are 3 ways to tell real estate agents and investors apart in South Bend, Mishawaka, Elkhart, Goshen, Granger, Osceola, Michigan City, La Porte, New Carlisle, Walkerton.
Ways To Tell Real Estate Agents And Investors Apart In South Bend, Mishawaka, Elkhart, Goshen, Granger, Osceola, Michigan City, La Porte, New Carlisle, Walkerton: List Versus Buy
The easiest way to tell agents from investors is to ask what they are going to do with your house – list it or buy it. A real estate agent will list your house on a listing service and they’ll try to find a buyer. They might need to show it to several people in order to find one buyer.
An investor, on the other hand, isn’t going to list your house – the investor is a buyer and they will buy your house from you directly. (That’s what we do at Drive By Home Buyers – we’re buyers and we buy houses in South Bend, Mishawaka, Elkhart, Goshen, Granger, Osceola, Michigan City, La Porte, New Carlisle, Walkerton. If you want to sell your house, click here and enter your information to find out how much we can pay).
Ways To Tell Real Estate Agents And Investors Apart In South Bend, Mishawaka, Elkhart, Goshen, Granger, Osceola, Michigan City, La Porte, New Carlisle, Walkerton: Timeline To Sell
The next way to tell an agent apart from an investor is to ask about their timeline to buy. An agent won’t know because they have to find the buyer first. In many cases, they might be looking at 3-12 months during which they’ll show the house to multiple potential buyers.
An investor, though, will know exactly how long it will take to buy your house since they’re the ones who will buy it. They will have an exact timeline (which could depend on you and how quickly you want to sell).
Ways To Tell Real Estate Agents And Investors Apart In South Bend, Mishawaka, Elkhart, Goshen, Granger, Osceola, Michigan City, La Porte, New Carlisle, Walkerton: Commission Versus No Commission
This one is crucial! An agent makes their money when they find a buyer and then you have to pay them a commission on the house (which could be somewhere around 6% of the sale price… or $6,000 on a $100,000 house).
An investor, however, isn’t listing your house so there aren’t any commissions. That’s because an investor will make money by either renting the house to a tenant or fixing up the house and selling it… so they make their money in a different way. Below are 10 bullet points highlighting why it might make more sense to sell to an investor versus list your house with a realtor.
- Flexibility in Pricing: Investors often have more flexibility when it comes to negotiating prices, as they are not bound by strict commission percentages and can structure deals based on their investment goals.
- Quick Transactions: Investors are typically able to complete transactions more swiftly compared to real estate agents, as they often have readily available funds and can expedite the buying process.
- Creative Financing Options: Investors may offer alternative financing options such as seller financing, lease options, or subject-to deals, which can be beneficial for sellers who require more flexible terms or have difficulty qualifying for traditional loans.
- As-Is Property Purchases: Investors are often willing to buy properties in their current condition, without requiring sellers to make costly repairs or renovations, which can save sellers time and money.
- No Marketing Expenses: Unlike real estate agents who invest in marketing efforts to sell properties, investors typically don’t require sellers to bear any marketing expenses, making it a more cost-effective option for homeowners.
- Reduced Holding Costs: As investors are often experienced in managing properties, they can minimize holding costs for sellers by quickly acquiring, rehabilitating, and renting or selling the property, reducing the financial burden on sellers.
- Expertise in Distressed Properties: Investors specialize in identifying and working with distressed properties, which may not be the primary focus of traditional real estate agents. They have the knowledge and resources to handle properties that require significant repairs or are in foreclosure.
- Investment Guidance: Investors can provide valuable insights and guidance to sellers regarding the potential investment value of their property, its marketability, and strategies to maximize returns.
- Access to Network of Buyers: Investors often have a network of buyers, including other investors or individuals looking for investment opportunities, which can increase the chances of a quick and successful sale.
- Long-Term Investment Relationships: Building relationships with investors can lead to future investment opportunities or partnerships, as they often seek additional properties for their portfolios. This ongoing connection can provide sellers with future benefits and investment prospects.
There are other ways to tell an agent or investor apart. The best thing to do is just ask… they’ll tell you!