What Is Real Estate Wholesaling?

Real estate wholesaling is a business model in which Your real estate agent or company sells your property or home for profit by fixing their own selling price along with the selling price of the property which you set for selling.

In this concept, the property owner sets up a temporary profit sharing agreement with the real estate company or agent in which the agent or the real estate company will sell the property of the owner at his own price which is always higher than the price that the property owner wanted.

 In most cases, real estate wholesaling comes into effect only when a property owner is distressed and is in dire need of immediate cash to solve some other problems. He only needs a minimum amount which he communicates with the real estate agent and then the real estate wholesaler makes a contract for this with the seller.

For example, if the seller wants a minimum of $100000, The wholesaler will sell the home for $150000 and take the remaining $50000 as profit.

This way of selling has a lot of benefits for the real estate company but it is not preferred by most of the buyers or sellers. Buyers always feel that they are paying more than what they could have otherwise bought and sellers always feel that they have got less amount of money than their property was worth.

But from some sellers’ point of view, there are some who want to come out of financial issues immediately and choose this real estate wholesaling method to quickly sell the property. The real estate agent Will give the property the maximum exposure as his profit In this method of sales is the highest when compared with any other real estate commission dealings.

What are the pros for sellers?

You don’t have to worry about the sales as most of the time, the real estate agent takes care of everything as his profit is much better than what it will be in other methods.

You will quickly come out of the financial issues.

You don’t have to convince the buyers.

You don’t have to do maintenance or other stuff which otherwise you must have done.

What are the pros for real estate agents?

Real estate agents get higher commissions than what they used to get in other transactions.

They can get hold of the real estate business quickly with funds they get from the wholesale dealing.

Real estate agents need not have any capital upfront to sell this kind of property. All they have to do is to find a buyer and convince them to buy the property. Once they are convinced, it is easy for them to complete the transaction as they already have an agreement with the seller.

Do You Recommend Real Estate Wholesaling?

Yes, it depends on your situation. As a seller if you are in need of immediate funds, then opting for real estate wholesaling is a good idea.