Are you thinking of selling your house? If so, you’ll most likely find yourself with two alternatives. You can list your house with a real estate agent or sell directly to an investor. Take a look at this blog post to understand the 3 distinct differences between real estate agents and investors in Toronto, and help you determine which option is best for you…
Real Estate Agents Versus Investors In Toronto: Listing Versus Buying
The simplest way to differentiate between real estate agents and investor is ask what their intentions are. Are they looking to purchase your house or list it for sale? In Toronto a real estate agent will list your house on the MLS (Multiple Listing Service) and essentially market your house to potential buyers. They often need to show the house to several buyers before one submits an offer.
On the other hand, an investor is not looking to list your house, they are looking to purchase your house directly. (That’s what we do at SLG Home Buyer – we’re investors and we buy houses in Toronto. If you want to sell your house without any hassle, click here and enter your information and we can give you an offer!).
Real Estate Agents Versus Investors In Toronto: Timeline To Sell
Another way you can differentiate between a real estate agent and an investor is to inquire about their timeline to close on the property. This would be difficult for a real estate agent to determine as they would have to find a buyer and determine the buyer’s timeline.
An investor will often have a desired timeline in mind as they are the ones buying the property. Another distinction, and a definite benefit, is that an investor will also be flexible on closing, and can accommodate a quick closing if needed.
Real Estate Agents Versus Investors In Toronto: Commission Versus No Commission
Here’s an easy one, and probably the most important! An agent’s profit comes from charging a commission to the seller (you) when they find a buyer. This is often 5% or 6%, which would be$24,000 on a $400,000 house.
Conversely, an investor is not listing your house and thus not charging a commission. An investor makes money by either renting the house out to tenants or renovating and reselling the property in the future.
If you’re interested in hearing more about the differences between real estate agents and investors, feel free to contact us.