So you heard about real estate wholesalers? What is a wholesaler in real estate? What do they do? How are they related to cash house buyers? If you are thinking about selling your house in Cleveland or just interested in real estate investing read on to find out everything you need to know about wholesalers.
What is a wholesaler in real estate?
Wholesalers typically market directly to property owners in order to acquire the property. They also work directly with the property owner without a real estate agent, which eliminates real estate agent commissions.
Pure wholesaling firms either don’t have the ability to or any intention to actually buy your house. Their major intention is to assign your contract for a profit to a third party, who is a cash buyer.
When I say “pure wholesaling” firms I mean companies that only do wholesaling and never buy any properties.
Are there wholesaling firms that will close on/buy your house? Yes, but these would not be “pure” wholesalers. Instead they would be considered more hybrid wholesaling/cash house buying companies that regularly do both.
There is nothing wrong with reputable, ethical wholesalers. They can provide a valuable service to you as a seller if you need to sell your house for cash much quicker than the traditional method of selling with a realtor and you are happy with the price they offer. This is especially true if the wholesaler is up front and honest with you about their intention to assign the contract.
Things you should be aware of with real estate wholesalers
Watch out for/be aware of inexperienced wholesalers or unethical wholesalers who will promise you the moon and fail to deliver.
Some problems they may create are offering way too much for your house or promising to close way too quickly in order to get it under contract. These issues will most of the time result in them coming back to you asking for 1. a price reduction after the contract is signed because they can’t find a buyer to assign the contract to at the price they offered you or 2. an extension of the closing date because…you guessed it…they can’t find a buyer to assign the contract to.
In turn, wholesalers who offer you a lower price are not necessarily just trying to lowball you. The offer is based on a realistic evaluation of what they feel the house is worth, the work that is needed, the demand for such a house, and the profit requirements for their company as well as for the end buyer (most likely a flipper with their own profit requirements).
In other words, experienced, honest, and ethical wholesalers will offer a realistic price they know will allow them to be able to assign the contract for by the agreed-upon closing date.
To summarize we answered the question “what is a wholesaler in real estate?”
What is a wholesaler in real estate?
Pure wholesalers are firms whose strategy is to put your house under an assignable contract. The wholesaler then finds a cash buyer to assign the contract rights to. The cash buyer (the end buyer) then buys the property from you, the seller, under the same exact terms of the contract that you agreed to.
If You are Saying “I Need To Sell My House Fast!” in Cleveland OH Then…
We want to talk to you. Sesa Properties is a local, trusted cash house buying investor operating in greater Cleveland, OH. As a company, we are dedicated to making the selling process as expedient and painless as possible for those who need to sell a house in Cleveland. We buy houses for cash, as-is, and aim to make the entire process as fast and easy as possible. If you are ready to find out what we can offer for your house click here to get your confidential, obligation-free offer started.
Find Answers to Other FAQs About Selling to a Cash House Buying Company
We want to help sellers fully understand the cash buying process, whether you are selling to us or another cash buying company. We understand selling a house for cash to a cash buying company is not as common as a traditional sale. Understandably, you may have a lot of questions. We want to help answer them. Check out our cash home buyer FAQs.
If you want to learn more about us then check us out at Sesa Properties.
The information presented in this article is for educational purposes only and should not be considered legal, financial, or as any other type of advice.
Find this article helpful? Check out these other related topics: