For Omaha homeowners who have properties with deferred maintenance, selling to a wholesaler can be a great option. In this blog, we’ll explore some common misconceptions about selling your house to a wholesaler. Read on to learn more!
First of all, just what IS a real estate wholesaler?
Simply put, a wholesaler is a real estate investor who serves as an intermediary – a matchmaking middleman, if you will – bringing a property owner together with an investor who wants to buy the property. It happens often like this. A wholesaler will find a property owner who want to sell their single- or multi-family property (often those with deferred maintenance and needing some repair), and they’ll sign a Purchase Agreement with that property owner. The Purchase Agreement will have a clause giving the wholesaler the option to assign the purchasing right to another investor (likely a cash buyer or house flipper). It’s this second investor who will actually buy the property and pay the property owner. The second investor will have signed an Assignment Contract with the wholesaler, stating they’ll pay exactly according to the terms laid out in the Purchase Agreement and assume all responsibility for payment.
Finding older properties that need repair and updating can be time-consuming, and flippers (for example) love spending their days doing the actual physical work to improve the house, not spending time searching for properties to flip! So they’re often very happy to have the help of wholesalers who can find them good projects to buy and work on.
This may sound a little complicated, but it’s really not! Here’s an example of how it works. Say a wholesaler talks with a homeowner who has a property they don’t have the time, energy, or money to fix up. But they want to sell. That homeowner agrees to put the property under contract with the wholesaler for let’s say $75,000. The wholesaler then puts the offer out to his network of flippers and investors for the price of 82,500. When the end buyer agrees to pay $82,500, the wholesaler gets the difference between the sales price and the contract amount, which in this case is $7,500. This is considered the wholesaling fee, which is how a wholesaler earns their income.
Just like any group of professionals, wholesalers are all different. They may have different buying criteria and ways of doing business. Before choosing to sell your house to a wholesaler in Omaha or any other place, ask questions to learn more about them, their business, and what they can offer you. With some, you can choose your own closing date, based on when it’s easiest for you to move out. Others might allow you to take what you want from the house, leave the rest, and let them do the cleanout. It all depends. It’s just good to work with someone who knows what they’re doing and keeps your goals in mind.
A Few Common Misconceptions
Getting Taken Advantage Of
A great wholesaler is in the business of helping homeowners who need to sell and lack the time to wait for a traditional sale on the MLS. They’re in the business of finding the right buyers who can close on a house quickly, providing the seller with a fair price and a good solution to their selling situation. What wholesalers strive to offer homeowners is a convenient sale, a fast closing, and a fair offer. That’s not to say there aren’t some out there who take advantage, as there are a few bad eggs in every professional basket. But we’ve found that most wholesalers really do want to provide great service to property owners – especially in Omaha! If you can have a good conversation with them upfront, take a look at their testimonials and/or get a reference from someone else who has used them, and if you can ultimately find and work with a trusted and professional wholesaler, you don’t have to be overly concerned about being taken advantage of.
There Might Be Hidden Costs
While we can’t speak for all wholesalers out there, you should know there shouldn’t be surprising fees or hidden costs. This is certainly true for our company here at Anna Buys Houses, and with us, you’ll be able to sell your house without spending a cent. There are no commissions, administrative fees, or other hidden charges to factor in. While we won’t be paying the full retail price for your house because the price will reflect the cost for its needed repairs and updating, the amount you’re able to save by not having to make time-consuming or costly repairs yourself will usually balance things out. The time and effort you’ll save definitely has a value all its own.
Wholesalers Are Just Trying To Make A Quick Buck
Of course, there are those fly by night wholesalers who may be looking for a quick deal just as a means to get into the real estate industry. While they may be fully capable of finding and facilitating a great deal, someone who is more experienced, and who does this work full-time may be in a better position to help both you as the seller as well as the end buyer. They should have a solid network of buyers, who all are interested in different types of properties at different price points. An experienced wholesaler in Omaha will know which buyers will pay what you’re asking, doing the work to close the deal as quickly and efficiently as possible.
There Must Be A Catch
There is never a catch when working with Anna Buys Houses to sell your house in Omaha. You won’t have to deal with surprises or hurdles that disrupt the sale of your house. With us, as with most wholesalers, you won’t be asked to make repairs, declutter, clean, or wait longer than expected. The wholesalers we know are people full of integrity who truly care about both property owners and property buyers. While we can’t speak for everyone, selling with Anna Buys Houses will ensure you receive a fair and no hassle process no matter your life situation or the property’s condition.
Most wholesalers do their very best to provide realistic solutions to local homeowners who need to sell quickly because of challenging life situations like job moves, suddenly inheriting an unwanted home, divorce, foreclosure, or any other difficult situation that puts people in a position where they need to be done with a property sooner than later. We love being able to match and connect buyers and sellers, and our aim is that everyone benefits and wins. Buyers are able to find the properties they want, and local sellers are able to sell their houses at a price that makes sense for both parties. One of our core values at Anna Buys Houses is to “serve others with kindness and respect” and to be “honest, helpful, and team-oriented.” And we always aim to be transparent about the process and everything we do.
If you are looking for a convenient, fast, and fair way to sell your house fast in Omaha, working with the team at Anna Buys Houses may be the solution you’ve been waiting for. If you have a house in Omaha that needs some work or needs to be sold quickly, please don’t feel stuck or discouraged! For many people, the process is much easier than listing or selling on their own. By working with a professional and experienced wholesaler in Omaha, you should be able to work with a reputable wholesaler and get a good cash price for your house while closing very quickly.