A wholesaler offers homeowners an option when they are trying to sell a property; typically, these houses are much older (built before 1950), are in a state of severe disrepair, and are not eligible for a bank loan due to their condition. Often they are in poor condition so they are not appropriate for a traditional MLS listing. The buyers for these properties are almost exclusively investors looking for rental properties in more rural areas of North Carolina. Serving as an intermediary between the buyer and seller, the wholesaler acquires a contract on your property. Wholesalers then locate an end buyer, assigning the sales contract on the property over to them for a fee. The assigned buyers almost always buy the home immediately, ready to close quickly with cash in hand.
Read on as we discuss the three fundamental differences between property wholesalers and Raleigh real estate agents.
An agent has no guarantees to offer, not even about when or even if your property will sell, one of the significant differences between property wholesalers and Raleigh real estate agents. In addition, further depleting your profits are any necessary repairs if you don’t pass the inspection. If you own a house that is modernized and is in good condition a traditional sale may abe the way to go. However, if you own a house that needs a lot of repairs an agent simply cannot guarantee how much any repairs or updates to the property will cost. Of course, if the buyers don’t walk away from the deal altogether, you could offer to deduct the remaining repairs at closing as a credit to the buyers for issues discovered during an inspection. Often, buyers in this position counter with ridiculously overpriced estimates of the repairs and demand further deductions. However, a wholesaler will offer your house for sale in as-is condition; you can forget your worries about passing the inspection. Wholesalers can indeed provide you with a closing date for your property upfront. Then, you can begin planning your move.
One warning is that like any service provider, not all wholesalers are competent and reputable. Too often a new wholesaler will put your home under contract for an inflated price only to be ignored by potential buyers. This wastes time and resources.
How can you be sure the wholesaler will close?
First, you should review the contract. Are there tricky contingencies such as “offer is subject to the approval of partner.” If you see a clause like that in the agreement–run!
Second, how much of a non-refundable deposit is the wholesaler willing to put down? This will tell you how confident they are that they can find a buyer. Also, more experienced wholesalers will have access to more funds to be able to put down a reasonable deposit.
Thirdly, do business with a local wholesaler with a solid reputation in the community.
Wholesalers with access to cash buyers should be able to close within 10 business days. This not only saves you time with a fast closing, but they can also save you a significant amount of money because they don’t work on commission; one of the main differences between property wholesalers and Raleigh real estate agents. The job you are hiring a real estate agent for, in essence, is to bring a buyer to your door. However, wholesalers offer to get you buyers, with none of the waiting or efforts to prepping for a traditional listing on the MLS or jumping through hoops to help your buyers gain approval for their mortgage loans. As a result, you will realize additional savings because you won’t be left to continue to pay the monthly bills while holding onto the property for months, waiting for a buyer.
Real estate agents understand that your must appeal to buyers; therefore, they set about advising you on the steps to take, which all come out of your pocket. Unfortunately, agents can be expensive to work with, prepping the property for showings and professional photography for marketing before the home is ready to list. Add to this the costs of listing, passing inspections, and closing costs. But, on the other hand, it will not cost you a thing upfront to sell your home to a Raleigh property wholesaler who requires none of the above.
There are critical differences between property wholesalers and Raleigh real estate agents, which can greatly benefit homeowners in situations that do not fit the typical mold for a conventional listing with a real estate agent.