The transactions in real estate involve some of the largest financial investments that most people have had to deal with. Therefore It is important to have sufficient information about real estate before engaging in any ventures. This helps an individual to make an informed choice on what to invest in. However, It has been found that both realtors and investors have some knowledge about real estate. The question that most people ask in this sense is who knows best about real estate between the two? Is it realtors or investors?
In relation to real estate services, realtors are in a better position to offer additional services to customers. These include the ability to write offers on the basis of a multiple low ball on a frequent basis which may be every week. They are also able to provide comps for each offer accepted. When working together both the realtor and the real estate investor need to have some little knowledge regarding real estate. For the investor, it is important that they have enough information regarding the return on investment, time limitations, capital limitations and a properly formulated exit strategy. This makes both of them realistic and responsible.
Comparatively, realtors know more about real estate than the investors. They are in a position to help a prospective buyers find multiple beneficial services that are available on the listing service. They are also shown to know more about the laws of real estate. It is because of this that they need to stay updated and furthers their education to gain current information in relation to real estate. This is all important to make sure that they are able to keep their license. The main element for a realtor to be in a position to perform his or her job in a perfect and satisfactory way is to be able to understand the mindset of a real estate investor. With this, they should be in a better position to pre-qualify the real estate investor in relation to:
- Their expected return on investment
- Amount of money available for investment
- Amount of time within which they can keep the money invested
- The exit strategy
Some of the advantages of dealing with realtors include their assistance in determining your buying power, numerous resources to assist in home search and objective assistance during the selection process.
Despite the fact that realtors often have more knowledge relating to real estate than the investors, investors still contact them for advice. Most of the time, the real estate investors find themselves in a situation where they lack sufficient experience in relation to real estate investment ideas, have limited capital and vague income goals. However, it is a contrast that with this step, the investors are usually taking a high risk on their own money while seeking such services. At times, the realtors agree to meet them once during the first appointment after which they disappear making the investors think that subsequent deals with them would have been an immense waste of time. It is thus usually advisable that they become more careful before taking any further steps or while choosing the realtor to deal with. In addition, they need to come up with more creative ways to make the deal take place.
More and more ideas are coming up in relation to the real estate sector. Thus, those who are known to have the relevant knowledge need to seek more information so as they can stay updated and well conversant with the current happenings. This is applicable to both the realtors and the investors so that they can be better positioned to share their knowledge to enable prospective individuals make informed choices. However, as an investor you will also need to dig deep for a lot of information to avoid making common mistakes despite the fact that you can seek the help of a realtor before making a decision with regard to real estate.
In this sense, there are a lot of lessons that real estate professionals should learn from real estate investors. This is because; due to their expertise most of them look at houses more differently than others. As such, they possess some form of weirdness or quirkiness while dealing with the agents who in turn opt to deal with non-investors instead. It thus shows that with the right kind of information, investors are in the most appropriate position to get good deals and avoid disappointments.
In Your Opinion, who know more about real estate? Investors or Realtors? Let us know in the comments below.
About the Author:
This post was co-authored by Omer Reiner from Distressed Real Estate Solutions of South Florida. Omer is one of the most knowledegable real estate investors in Miami I know. We help homeowners who need to sell their house in Miami-Dade, Broward and Palm Beach Counties.