If you’re in a hurry to sell your house, working with a wholesaler is one of the options. But what is a wholesaler? You’ve probably seen those “we sell houses” signs. Well, the wholesalers are behind them.
A wholesaler is something between a seller and a buyer (a middle-man of some sort). They will buy the house from you for a lower price. After that, they’ll try to make a profit by selling the house to a new buyer (probably to a fix-and-flipper), in a matter of days.
So, should you sell your house to a real estate wholesaler? In some circumstances, you should. Here are the top 10 reasons we think you should sell your house to a real estate wholesaler.
1. Closing Faster
When you’re in a hurry, you’re more likely to close the deal on time if you go to a wholesaler. The wholesaler is ready to buy your house in no time, so you won’t be wasting much time negotiating. They probably already know who they’ll sell it to at a higher price (it’s someone you don’t have the time and means to look for right now). That’s a wholesaler’s job.
2. Getting Paid in Cash
This one adds up to the above – one of the reasons you’re closing faster is getting paid in cash. This way you don’t have to worry about the deal falling through. You will get paid in a matter of days.
3. No Commission Costs
Sure, you’ll probably sell your house at a higher price if you hire an agency, but their commission varies. In some states, it’s as high as 10%. Depending on your asking price, the commission can be quite hefty. This is something to consider when choosing between a real estate agency and a wholesaler. In some cases, there will be no differences.
4. No Holding Costs
It can take months before you sell your house after you put it on the market. Unfortunately, while your home is on the market, you would still have to pay the mortgage, homeowner’s insurance, property taxes, and all the bills, whether or not you’re still living there. If it takes too long to sell the house, your expenses can skyrocket. After a while, your profit will be equal to the wholesaler’s offer.
5. No Closing Costs
Usually, when you sell a house, you’re obliged to pay the seller closing fees, which can go up to a couple of thousand dollars. Plus, some buyers might ask for closing cost assistance, which means more cuts of your original price. If you work with a wholesaler, you’ll avoid all these costs, because it’s a wholesaler who will pay for all the closing fees.
6. Avoid Showings
Property showings can become very stressful for the owner and can turn your life into a limbo. You’ll start feeling like a guest in your own home. Also, you need to maintain the house and keep it in the best condition possible for a potential buyer. This is especially hard if you live there with your family.
It can be very difficult to get every family member to change their living habits over time. Sure, you can hire a professional to keep your house staged for showings or open hours, but the point is to save the money.
If you’re selling to a wholesaler, you’ll avoid all this. They don’t care much if your house is clean or not, as they know that’s not what really matters. They’ll take one quick look and offer a price, and you can think about it in the comfort of your own home. This also brings me to the next point.
7. No Repairing and Upgrading
You don’t want to get a call from your retailer/buyer months after closing, saying there’s a leak in the roof you didn’t tell them about. You can try avoiding this by inspecting the whole house before putting it on the market, but even then something can always come up.
In that case, it’s another $2000 that you need to pay in addition to all the repairs and upgrades you did before the sale. When you make a deal with a wholesaler, nothing is your responsibility anymore. In fact, they are looking for distressed properties. They probably already have a client that will fix and flip it to get the price up. All you have to do is take the money and run.
8. Multiple Options
Everyone likes to have options, right? Well, if you’re determined about selling your home at your preferred price, you’ll be left with very few options. Depending on the location and the condition of your house, you’ll probably get no more than a couple of offers in a few months (and you won’t like most of them).
However, if you’re willing to change the price, the wholesalers will be throwing offers at you. You just have to pick an option that’s most appealing to you. Whether it’s the one you trust the most, the quickest one, or the one that seems most profitable, it’s all up to you.
9. Direct Communication
When you work with a wholesaler, you’re communicating directly with your buyer. This is not the case when you work with a real estate agent. The agent will do most of the talking with the potential buyer. Many people don’t like this, as it can make them feel like they can’t trust their agents.
You know your house better than anyone, and if you trust your negotiating skills, we think it’s best that you talk directly to a potential buyer – that’s something you get with a wholesaler. They will be honest with you about trying to make a profit from your sale, so you can work together on getting the best deal possible (for you and the wholesaler).
10. Flexible Moving Options
A traditional buyer will most likely ask you to empty the house completely – that means throwing out the old furniture and stuff you don’t need (and there’s always a lot of stuff). This means additional moving costs and figuring out how to get rid of all that stuff.
A wholesaler will take the house as it is, and you will be able to choose what to take and what to leave behind. Assuming you want to end this chapter of your life as quickly and cheaply as possible, this is another reason for working with a wholesaler.
Selling to a Wholesaler Is a Legitimate and Rational Decision
You might find it unusual that someone has the cash to drive around and buy houses. However, wholesaling is a legitimate business. If you’re ok with someone profiting on your sale, all you have to do is conduct a little research on a wholesaler that approached you.
If you don’t have the time and the money needed to invest when putting your house on the market, going to a wholesaler is a good option. In many cases, you’ll find that the money you spend over the months-long process of a traditional sale leaves you close to a wholesaler’s offer.