Real Estate Agents vs. Real Estate Investors

Many people struggle to distinguish between a real estate investor and a real estate agent. After all, they both operate in real estate and make money from properties, right?

There are more differences than similarities between a real estate investor and a real estate agent. And it’s highly important to understand the differences and choose the one that’s best for you.

If you’re wondering, “How can I sell my house fast in Memphis, TN” don’t worry. This post will outline the key differences between real estate agents and real estate investors. Keep reading to learn more!

Get To Know Real Estate Agents

A real estate agent is a person who works for clients to arrange real estate sales and purchases. This agent earns money by taking a fee from the transaction’s total amount. They are licensed and regulated by the state in which they work.

Real estate agents have to know a great deal about real estate law, financing, marketing, and more to do their job effectively. They also must adhere to a strict code of ethics while representing their clients.

Get To Know Real Estate Investors

A real estate investor buys, controls, rents, and/or sells real estate for profit. The real estate investment technique usually includes making repairs and improvements to the property.

Real estate investors are not licensed and are not regulated by the state. They do not have to follow a code of ethics, but most do anyway out of good business practice.

Real Estate Agents vs. Real Estate Investors

Now that you know what each profession does, let’s look at the key differences between them.

Commissions

Real estate agents are paid on a commission basis. They receive an average of 5.2% commission on every sale they help to facilitate. Real estate investors don’t work on a commission basis since they’re the ones buying.

Instead, real estate investors in Memphis, TN, make money from a piece of real estate by:

  • Selling and renovating the property
  • Taking care of the property as a rental
  • Bundling many homes together and offering the entire batch at once

Purpose

The main purpose of a real estate agent is to help sellers and buyers come together and complete a transaction. They are the middlemen in the process.

The main purpose of a real estate investor is to make money from the property while improving it so that they can sell it for a higher price later on. While investors do help buyers and sellers, their main focus is on the financial aspect of the deal.

Timeframe

Real estate agents usually take weeks or even months to find a buyer for a house. They have to go through many potential buyers before finding the right one. 

On the other hand, real estate investors can buy a house within days or weeks. This is because they usually have pre-existing relationships with contractors and other people in the industry who can help them close a deal quickly.

Knowledge

Real estate agents must know about real estate law, financing, and marketing. They must pass a test to become licensed.

Real estate investors are not required to know any specific information about real estate law or financing. However, they should have a general knowledge of both to make sound decisions when investing.

Home Buying Companies: Your Best Bet! 

If you’re looking to sell your house as quickly as possible and avoid paying thousands in commissions, the best option is to sell it to a home buying company.

Some benefits of working with real estate investors in Memphis, TN, are:

  • You’ll sell your house quickly
  • Get cash for your house
  • There are no commissions or hidden fees.
  • You’ll sell your house as-is, so you don’t have to make any repairs.
  • Fast and simple process

Work With Top-Notch Home Buyers In Memphis, TN

If you’re wondering, “how can I sell my house fast in Memphis, TN” look no further than Fair Home Offer Memphis. As homebuyers in Memphis, TN, we buy houses in any condition and can close quickly. We’re a top-rated home buying company, and we’ve helped homeowners sell their houses fast for years. Get in touch with us today

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