If you’re considering selling your property, you’ll come across individuals who are willing to provide assistance. However, it’s crucial to know the ways to tell real estate agents and investors apart. To help you differentiate between the two in Chicago, Suburbs of Chicago, North Central and Central Illinois, we’ve compiled a blog post that outlines three ways to tell real estate agents and investors apart. Knowing these distinctions can aid you in determining which option would better suit your needs. So, if you’re contemplating selling your house, take a look at this post to learn more about identifying the differences between real estate agents and investors in Chicago, Suburbs of Chicago, North Central and Central Illinois.
List Versus Buy
There are two main types of professionals that you may come across when you are looking to sell your home: real estate agents and investors. While both parties can assist in selling your home, the approach and outcome may differ significantly.
One of the easiest ways to distinguish between these two groups is by asking what they intend to do with your house. A real estate agent will typically list your home on a listing service and work to find potential buyers. This often involves showing your home to multiple interested parties before a buyer is found. Agents may also help you stage your home to make it more attractive to potential buyers and negotiate on your behalf during the sales process.
In contrast, investors are buyers who are interested in purchasing your home directly from you. Rather than listing your home, they will make you an offer based on the value of the property and market conditions. Once you accept the offer, the investor will purchase your home in cash, allowing you to bypass the traditional sales process entirely.
For example, at Heartland Funding Inc., we specialize in buying houses in Chicago, Suburbs of Chicago, North Central and Central Illinois and offer interested sellers the opportunity to receive a cash offer by submitting your property information through our website.
Timeline To Sell
You can inquire about their purchasing timeline. Typically, an agent may not have a definite timeline as they must locate a buyer first. In such cases, it can take up to 3-12 months to showcase the house to various potential buyers. On the other hand, an investor is aware of the precise duration required to purchase your house since they are the ones who will buy it. Their timeline may vary depending on your urgency to sell.
Commission Versus No Commission
The compensation structure for an agent involves receiving a commission on the sale of the house, typically around 6% of the sale price, which could be $6,000 for a $100,000 house, after they find a buyer.
In contrast, an investor doesn’t act as a listing agent, and hence, they don’t charge any commissions. Investors make their profits either by leasing the property to a tenant or renovating and reselling it, resulting in a different earning mechanism.
The most reliable way is to ask them, they’ll tell you.