Real Estate Agent vs Investor: Which One is Right for Your Next Sale?

When selling a house, using a real estate agent to sell a home is the default option for most individuals. Many people don’t want to sell their homes privately to investors because they don’t know much about them and have doubts about them.

However, you should consider selling your house to an investor. In this blog post, we will discuss what a home investor means, how they differ from traditional home buyers, and why selling to an investor is the best option for you!

The Differences Between a Traditional Real Estate Agent and An Investor

Traditional Residential Real Estate Agent

Selling your house through a real estate agent involves hiring a licensed professional who will list your property for sale on the local Multiple Listing Service (MLS). The agent will handle all aspects of the sale, including marketing the property, scheduling showings, negotiating with buyers, and completing the necessary paperwork.

Real Estate Investor

Selling your house through an investor typically involves selling the property directly to the investor, rather than listing it on the MLS. Investors often buy properties for cash and may be willing to close the sale quickly. They may also be willing to purchase properties that need repairs or have other issues that may make them difficult to sell through traditional means.

Why Choose Home Investors and Not Real Estate Agents?

#1 There Are No Commissions Involved

There is usually a commission or charge paid by the seller to the agent. If your home is listed for $200,000, for instance, you’ll need to take roughly $6,000 out of that sum to compensate real estate agents. These charges and fees are not necessary if you are selling directly to an investor rather than utilizing a real estate agent.

#2 There Is No Risk of a Poor Inspection

Did you know that house sales may fall by as much as 15 percent when buyers have to wait for financing and/or inspection results? This implies that if there are issues discovered during the house inspection or if the buyer is having trouble coming up with the correct sum, the sale may fall through.

It’s possible that all sales may be canceled, and you’d have to start looking for a new customer from scratch. You don’t have to worry about money or finances when selling to an investor.

#3 You Won’t Have to Deal with Remodeling

If you have a house on your hands that needs repairs and remodeling, it may not be worth the money, time, and hassle it takes to fix it up to look nice for a sale. Having to deal with this may be somewhat irritating.

Investors are willing to buy properties that need repairs since they are planning on remodeling and flipping it for a profit anyways, or to add them to a portfolio of investment properties.

#4 You Will Not Incur Any Maintenance Costs

You may also be able to avoid other fees that are typically associated with selling a property, such as closing costs, staging costs, and marketing costs. These fees can vary depending on the specifics of your sale, but they can add up and can be a significant expense for the seller.

#5 It Doesn’t Need a Complex Evaluation

In order to sell a property, most buyers need to conduct tests, which may take a significant amount of time and leave the final selling price up in the air. As a result, investors already know what specific things they are looking for in a home, if it meets their criteria, they will not waste any time. An investor is mainly looking to buy as many good deals as possible so that they can either flip it for a profit or add it their multiple rental properties.

#6 Get Cash Quickly

Selling your house to an investor can allow for a faster cash-in-hand process because investors often have the ability to buy properties for cash and may be willing to close the sale quickly. These real estate transactions can be especially appealing for sellers who need to sell their property quickly, such as in the case of an emergency or a financial hardship.

In contrast, selling your house through a real estate broker or agent typically involves a longer process, as the property must be listed on the MLS by someone with a real estate license, marketed to potential buyers, and negotiations with buyers must be completed. This process can take several weeks or even months, depending on market conditions and other factors.

#7 You Can Sell It Anytime

There are a few reasons why selling property (even commercial properties) to an investor may be a faster real estate transaction than selling it through a real estate agent. One reason is that investors often have the financial resources to purchase properties for cash, which allows them to close the sale more quickly. This can be especially appealing for sellers who need to sell their house quickly for various reasons, such as to meet a financial obligation or to relocate.

In contrast, selling your house through a real estate agent typically involves a more drawn-out process. The property must be listed on the Multiple Listing Service (MLS) through a licensed real estate professional, which can take some time, and then it must be marketed to potential buyers.

#8 Flexible Timeline

The closing date for a conventional sale must be mutually convenient for both parties; however, the buyer often has the last word in this matter. That implies you can’t stay in the home beyond the closing date.

When compared to a traditional home buyer, investors may be more accommodating about the closing date. In contrast to a standard sale, you may also be free to abandon unwanted items.

Working with an investor who knows the real estate industry gives you even more power. You can decide the closing date, so you may schedule it to coincide with the closing of your new home if you’re buying at the same time.

#9 Sell Your Home as Is

Since the investor (or the business) won’t be living there, the presence or absence of a colorful backsplash in the kitchen or brand-new plumbing fixtures in the bathrooms is irrelevant. Many real estate investors actively seek out older properties in need of repair so that they may profit from the renovation and sale of the renovated property.

It may be worth noting that there are also investor agents who are both a licensed real estate agent and real estate investor. An investor agent may be willing to work with you to buy your property quickly for cash if meets their personal criteria.

#10 Possibilities for Adaptable Payment Plans and Other Buying Options

Selling your house to an investor can allow for creative financing options because investors may be willing to structure the sale in a way that meets the needs of the seller. This can be especially appealing for sellers who may have difficulty securing traditional financing, such as a mortgage, due to credit issues or other factors.

For example, an investor may be willing to offer a lease-purchase agreement, which allows the seller to remain in the property as a tenant while making payments to the investor. This can provide the seller with some flexibility and the opportunity to build up their credit or financial stability before completing the sale.

Another real estate investing creative financing option that an investor may be willing to consider is a seller-financing arrangement, in which the investor agrees to make payments to the seller over time rather than paying the full purchase price upfront. This can be a good option for sellers who need to receive some immediate cash but are willing to hold onto the property for a longer period of time.

Final Thoughts

There are several reasons why selling your home to real estate investors may be a better option than using a traditional real estate agent. One reason is that the process is often faster with an investor, as they are able to make a decision and move forward with the purchase without the need for financing or other contingencies that can hold up the process.

Additionally, investors may be able to offer a fair price for your home without the need for repairs or other renovations, which can save you time and money. Finally, working with an investor can be less stressful, as you can avoid the traditional hassles of preparing your home for showings and dealing with a lengthy negotiation process.

Overall, selling your home to an investor can be a convenient and hassle-free way to sell your property and move on with your life.