Wholesalers offer homeowners another option when looking to sell their house, especially when these houses are in disrepair and the owner doesn’t have the time, money, or desire to fix them up themselves or if they just want their cash quick. A real estate agent will list your house on the MLS and it doesn’t necessarily mean you’ll find the best buyer for your property and will not allow you to get top market value. A good wholesaler will use his connections and network to find you a cash buyer (or buy it themselves) allowing you to get the most out of your house as you can. Please note, in many cases realtors are a better fit than a wholesaler. The main situation would be when the house is in good shape, the seller is okay with waiting for their cash, and the house will pass a bank loan.
Serving as a connection between the seller and buyer, the wholesaler acquires a contract on your property. Wholesalers then locate an end buyer, assigning the sales contract on the property over to them. The assigned buyers almost always buy the home immediately, ready to close quickly with cash in hand. The wholesaler makes their money by charging more to the end buyer than they have it under contract for with homeowner.
Read on as we discuss the three fundamental differences between property wholesalers and Parkersburg real estate agents.
Guarantees
An agent can’t guarantee when or if your property will sell unless it is a very high demand house at less than market value. This is one of the biggest differences between wholesalers and Parkersburg real estate agents. You have to wait for the right buyer to come along and then you will more than likely have to negotiate with them. Then if they are about to back out, you may have to drop your price for them. A wholesaler will offer on your house in as-is condition and they will provide you with a guaranteed closing date. Here at Appalachian Homes, every offer you accept of ours comes with a $1,000 guarantee. This means we put $1,000 in escrow as soon as you accept our offer and if for some reason we don’t close on your Parkersburg house you get to keep the $1,000.
Savings
Wholesalers will not only save you time with their fast closings, but they can also save you a lot of money as they do not work on commissions; one of the main differences between property wholesalers and Parkersburg real estate agents. When you hire a realtor, you are hiring them to bring potential buyers to look at your house hoping one of them will buy it. A wholesaler like those at Appalachian Homes on the other hand will have buyers lined up before making you an offer on your house and after you accept it; they will contact their network of buyers and sell it to the first to close on it. This gets you buyers without any negotiation, dealing with banks/inspections, waiting, or repairs.
Another way wholesalers will get you top market value is by how they are incentivized to get paid. An agent gets paid typically 3% of the sale price and their brokerage gets another 3% of the sale price meaning you will lose 6% of the sale price. If you are selling a $30,000 house the agent will only get paid $900 and their brokerage will get $900. This means that the agent is not incentivized to sell your house as much as they are to sell a “nicer” already repaired house for $100,000 or more. They will do the same amount of work (or more) and get paid less. You can’t blame them for not wanting to take on cheaper houses that are in disrepair. A wholesaler on the other hand will offer you $28,000 on that same house and you will get that full amount in a check for your house with no negotiations, no waiting, no closing costs, no commissions or anything else that could take money out of your pocket. The wholesaler will assign the contract with you to one of their buyers for $30,000 and make a profit of $2,000 while selling your house quicker and leaving more money in your pocket.
Expenses
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 Parkersburg property wholesaler, like those at Appalachian Homes who require none of the above.
There are critical differences between property wholesalers like Appalachian Homes and Parkersburg 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. Find out for yourself today with no obligation how the wholesalers at Appalachian Homes can help you. Call Appalachian Homes at (304) 679-7527 or send us a message to learn more.