If you’re considering selling your house, you’re likely to encounter individuals eager to assist you. Among them, you’ll come across both real estate agents and real estate investors. To distinguish between the two and understand the benefits of working with either, take a moment to explore this blog post highlighting three key differentiating factors specific to Sacramento County.
When it comes to selling your house, it’s important to note that not all individuals offering assistance will provide the same level of support. Real estate agents and real estate investors operate differently and offer unique advantages. To help you make an informed decision, here are three ways to distinguish between real estate agents and investors in Sacramento County.
Ways To Tell Real Estate Agents And Investors Apart In Sacramento County: List Versus Buy
Distinguishing between real estate agents and investors can be easily done by asking about their intentions regarding your house – whether they plan to list it or buy it. Real estate agents typically list houses on a listing service and make efforts to find a buyer through multiple showings. On the other hand, investors have a different approach. Rather than listing the house, they act as direct buyers and will purchase your house from you directly. This is precisely what we specialize in at North Valley Home Buyers – we are buyers who directly purchase houses in Sacramento. If you are interested in selling your house, you can click here and provide your information to discover how much we can offer you.
Ways To Tell Real Estate Agents And Investors Apart In Sacramento County: Timeline To Sell
Another method to differentiate between an agent and an investor is by inquiring about their timeline to complete the purchase. An agent’s response will often be uncertain since they need to find a buyer first. This process can take anywhere from 3 to 12 months, during which they may arrange multiple showings for potential buyers. Conversely, an investor can provide a precise timeline for purchasing your house since they are the ones directly involved in the transaction. They will have a clear understanding of how long it will take (although the timeline may also depend on your preferences and how quickly you want to sell).
Ways To Tell Real Estate Agents And Investors Apart In Sacramento County: Commission Versus No Commission
This is an important aspect to consider when distinguishing between agents and investors. The manner in which they earn their income sets them apart significantly. A key factor to note is that agents rely on commissions derived from the sale of your house. Once they successfully find a buyer, they will expect a commission, usually around 6% of the final sale price. To illustrate, on a $100,000 house, the commission would amount to $6,000. This commission-based structure is a fundamental part of their business model.
Conversely, investors operate differently. Since they are not listing your house on the market, there are no commissions involved. Instead, investors generate their profits through alternative avenues. One common approach is to rent out the house to tenants, thus generating regular rental income. Alternatively, investors may choose to renovate the property and sell it at a higher price, capitalizing on the appreciation resulting from the improvements made. These alternative revenue streams allow investors to pursue their financial gains in a distinct manner from agents.
While there are additional distinguishing factors between agents and investors, such as their knowledge and expertise in the market, asking about their income structure is a straightforward way to identify their role. By directly inquiring about how they make money, agents and investors will be forthcoming in explaining their approach, thus providing you with a clearer understanding of their services and motivations. This transparency empowers you to make an informed decision when selecting the most suitable professional to assist you with your house sale.
If you’ve read this post and decided to see what an investor can pay for your house, get in touch with us. Click here and enter your info, or pick up the phone and call our team at (916) 500-7355.
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