Realtor vs. Real Estate Investor: What’s the Difference?

Many people think real estate investors and Realtors perform the same role, but they are quite different.

Both deal with buying and selling properties, yet the way they operate and their goals vary significantly.

Whether you’re buying or selling a property, it’s essential to understand these differences so you can choose the best option for your situation.

Do They Need a License?

A major difference between Realtors and real estate investors is the requirement for a license.

Realtors must hold a real estate license because they represent clients in the purchase or sale of properties.

Their role is to facilitate transactions between buyers and sellers.

Real estate investors, however, don’t need a license.

They buy and sell properties for themselves rather than representing others.

The exception is when an investor also works as a Realtor, giving them the ability to operate in both capacities.

How Do They Make Money?

Realtors and investors both make money through real estate, but the way they do so differs.

Realtors

Realtors earn a commission on the sale of a property.

This commission typically ranges from 1% to 5% of the sale price and is paid by the seller.

The higher the sales price, the more a Realtor earns. Their focus is on securing the best price for their client.

Investors

Investors make money by purchasing properties at favorable prices and generating cash flow through strategies like reselling, flipping, or renting.

Unlike Realtors, investors negotiate for the lowest possible price to maximize their profits.

Helping You Sell vs. Buying from You

Realtors and investors serve distinct roles when working with homeowners.

Realtors

If you’re looking to sell your home, a Realtor will guide you through the process.

They’ll market your property, assist with staging, schedule showings, and work to secure the highest possible price.

Investors

Investors are direct buyers who purchase properties for their own portfolios.

Their primary goal is to acquire properties at a lower price to ensure profitability.

Because of their differing goals, the approach to marketing also varies.

Regulation and Oversight

Realtors operate under strict oversight as they work for brokers and adhere to state and national real estate regulations.

Investors, on the other hand, work independently or in teams.

Since they buy and sell properties for themselves, they aren’t subject to the same level of regulation.

Realtor-Investors: The Best of Both Worlds

Some professionals operate as both Realtors and investors, offering a unique advantage.

These Investor-Agents understand both sides of the real estate equation, allowing them to provide sellers with more tailored options.

They can either represent you as a Realtor to maximize your home’s sale price or purchase your property directly as an investor if you’re looking for a fast, hassle-free sale.

Chris Bounds: Realtor and Investor

Chris Bounds combines the expertise of a licensed Realtor with the entrepreneurial approach of an investor.

This dual capability allows Chris to provide friendly, professional service and customized solutions for homeowners looking to sell.

If you’re considering selling your house, contact us today.

Whether you want to sell quickly for cash or explore other options, we’re here to help. Fill out the form or give us a call to get started.