Wholesale selling is the quickest exit strategy in the real estate industry. If it had a motto it would be: ‘pay cash, close fast.’ There are many reasons to opt for wholesale over retail. At first, it is fast. Buying and selling houses through a wholesaler could have your house sold in 10 days.
Second, it is convenient. People have all sorts of reasons for needing to make a quick sale. Whether you need to move asap for a job, recently separated from your spouse etc, if you find yourself saying, “I need to sell my house fast,” then wholesale real estate is your go-to answer. You don’t have to pay a dime to wholesale your house. A wholesaler usually fixes the house themselves. This will relieve you of the cost of making the house market-ready.
Consequently, a wholesaler will bag most of the profit. This does not mean, however, that you will make a loss. As the seller, you set your asking price at MAO. Real estate regulations stipulate that you should buy a house at less than MAO. Subsequently, your profit will be equal to the asking price less the amount you paid for the house.
Like every deal, wholesaling has its risks. Some wholesalers may dupe you out of your money and sell you a cheap bargain. Before you sell your house, here is a list of 10 questions you should ask your wholesaler:
1. DO THEY HAVE A BUYER’S LIST?
A proficient wholesaler should have a network of buyers and sellers. This is called a buyer’s list. The best attribute a wholesaler should possess is the ability to build relationships. Every successful deal a wholesaler makes should widen their network. You want a wholesaler with as wide a network as possible. It will translate to less days closing your deal.
2. DO THEY HAVE A LEAD- GENERATION PROGRAM?
Lead generation is the crux of wholesaling. Find out how your wholesaler fishes for his leads. Ask to see their websites, landing pages and social media pages. How extensive are they? Do they receive traffic? Their whole system should have the makings of a leads magnet.
3. DO THEY KNOW HOW WHOLESALING WORKS?
Although experience is key, some up-coming wholesalers are excellent at their job. If you chose to go with a wholesaler new to the market, knowledge is your deal breaker. Do they know the time parameters of a wholesale deal, how earnest money works, or what a purchase and sale agreement is? Can they walk you through the whole process?
4. WHAT IS THEIR ATTITUDE?
Your best bet is a confident, calm, charismatic wholesaler. You want to go for someone who is goal oriented, positive and determined. Since wholesaling is a fast business, a wholesaler should be able to handle pressure. After all, the whole angle of wholesaling is to ‘sell my house fast.’ Thus, you want to make sure it’s handled by someone who knows what they’re doing and can take care of everything on your time frame.
5. ARE THEY PREPARED?
Before you get into a deal with a wholesaler, find out if they are ready to handle any unforeseen complications. What if they fail to close the deal by the time stipulated? What if they have to sell for less? Talk to your wholesaler to see how extensively they have covered their bases.
6. HOW LONG WILL THEY TAKE TO CLOSE THE DEAL?
-The longest wholesale deal could be closed in 7-10 days. Remember, the people who going to wholesalers are typically the ones typing into google ‘sell my house fast’ trying to make a quick sale. If your wholesaler quotes a longer period than that, you should opt out. A wholesaler may want to keep the deal open and wholesale the house to someone else.
7. HOW MUCH EARNEST MONEY ARE THEY OFFERING?
You should be able to get as much earnest money as possible as a down payment. The rest you can get on a set date when you close the deal. Be careful, this is where most sellers lose their money. If a wholesaler offers less earnest money than the closing money, don’t take the deal.
8. WHAT IS THEIR ASSESSMENT OF THE HOUSE?
Before you sell your house you should have it appraised to find out its market value. Before you divulge this information to your wholesaler, ask them what their assessment is. Does it fall in the range of your assessment? If it is too low, your wholesaler may be trying to rip you off. If it is too high, they might not have done any appraisal. You can use online evaluation tools like home value report.
9. WILL THEY MEET YOUR ASKING PRICE?
Settle on an asking price which should be less or equal to MAO then tell it to your wholesaler. Are they willing to meet that price? If not, then the deal is probably not for you. Remember that all wholesale deals should be transacted in cash. Ask about this too.
10. ARE THEY AVAILABLE FOR A MEETING?
Although it isn’t necessary to meet your wholesaler, this is a vital question. You should be able to know if you can reach your wholesaler after you strike a deal. The willingness to meet is a show of accountability. If your wholesaler is confident about giving you their physical address, go ahead with the deal.
Buying and selling houses is a hard, long process. Wholesaling is the best way to opt out of a house you no longer want/need.
However, you can increase the chances of your house selling by advertising its best features
Mention the environment your house is situated in and capture any natural features or sporting facilities and unique amenities too. Alternatively, you can do some repairs around and on the house before you put up a ‘For Sale’ sign. Mow the lawn, replace missing tiles and fix any broken fixtures. If you are selling the house because you can’t afford repairs, then just a routine clean-up will do.
When you’re done, asses your house and advertise it. Use as many visuals as possible. Home buyers in Maryland prefer to see a house before they buy it. Take various pictures of the house from different angles. Capture the rooms in good lighting and if you can afford it, take a walk through video of the house.
Once you do all this, your house is more likely to get a buyer fast. Contact your wholesaler, sit back. Your wholesaler will have your deal closed and your money with you in a few days.
