The Differences Between Home Buying Companies and Real Estate Agents

The Differences Between Home Buying Companies and Real Estate Agents

Whether you want to buy a home or not, it’s important that you understand the difference between buying a house and working with a real estate agent. The two are often mixed up, but they are actually vastly different. Get more details here

Here are the differences between working with a real estate agent and purchasing your home through a home buying company:


Home buying companies are experienced with helping people buy a home. Many of them have been in business for years and know how to help you make the transition from renter to homeowner. A real estate agent is only good for helping you sell your home.

Commission Rates

Home buying companies are commission-based, which means you pay the salesperson a percentage of your home’s value. Home buying companies depend on making commission for their business to succeed. As such, agents will always want to sell you the most expensive house possible. A real estate agent does not need your business and can’t make money from placing you in an overpriced house.


Home buying companies are not regulated by a government agency or bureau. They do not have to abide by any laws or rules that govern real estate agents. In fact, some companies act as if they are a real estate agency and purchase your home for the purpose of selling it for you. Home buying companies are an unregulated business, meaning that they can often choose to ignore or refuse to respond to demands put before them by consumers.


When you use a home buying company to purchase your home, you will sign a contract with the company. The contract is used to dictate where and when the sale of your home will take place. It also specifies which contractual terms are applicable to the transaction. You must agree to abide by the terms of the contract or face legal consequences for breaking it.

Agents and Brokers

As stated above, real estate agents are only licensed if they sell houses for a living. But, many “real estate agents” work primarily with buyers. These agents do not have to attain a license; however, they must adhere to the guidelines set forth by the state. Agents are required to obtain a license if they want to earn commission on real estate sales.