Distinguishing between real estate agents and investors in the Bronx (or any other location) can be crucial when deciding how to sell your property. Here are three ways to tell them apart:
- Role and Purpose:
- Real Estate Agents: Agents act as intermediaries between buyers and sellers. They list properties, market them, and facilitate the buying and selling process. Their primary goal is to help clients sell or buy properties and earn a commission for their services.
- Investors: Investors, on the other hand, are individuals or entities looking to acquire properties for investment purposes. Their goal is often to generate a return on investment. Investors may buy properties to renovate and sell (flipping), hold for rental income, or engage in other investment strategies.
- Buying Approach:
- Real Estate Agents: Agents typically represent buyers or sellers and earn a commission based on the sale price. They do not buy properties themselves but assist clients in the buying or selling process.
- Investors: Investors buy properties directly, often with the intention of making improvements and selling for a profit or holding for rental income. They may purchase properties in various conditions, including distressed properties that might not be as appealing to traditional buyers.
- Financing and Contingencies:
- Real Estate Agents: Agents facilitate transactions between buyers and sellers, and the sale is often contingent on the buyer securing financing. The process involves inspections, negotiations, and meeting various contingencies.
- Investors: Investors may use cash to purchase properties, allowing for faster transactions without the need for mortgage approval. They often prefer properties with fewer contingencies and may buy houses in as-is condition, meaning they are willing to take on the property in its current state without requiring repairs or improvements.
It’s essential to communicate directly with individuals or entities you’re considering working with and ask questions about their approach, intentions, and role in the real estate transaction. Real estate professionals, whether agents or investors, should be transparent about their processes and how they can assist you in achieving your goals, whether that’s a quick sale, maximizing profit, or another objective.
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 the Bronx, 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 Bronx, NY.
Ways To Tell Real Estate Agents And Investors Apart In Bronx, NY: 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 Tristate Holdings 167 Inc. – we’re buyers and we buy houses in The Bronx. 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 The Bronx: 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 Bronx: 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.
There are other ways to tell an agent or investor apart. The best thing to do is just ask… they’ll tell you!