Wholesale
Getting a property under contract, then selling the contract to an end buyer for a fee. The wholesaler never takes title. Legal in most states with some restrictions.
Your Room opens on showings and offers, with everything before the listing already ticked.
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See how it worksWhere this comes up: on the market
Part 1 of 4
Why a seller cares
A wholesaler puts your home under contract and sells the contract to an investor for a fee, never owning it. The offer is low because two people have to profit from it, and the deposit is often small because the wholesaler may never find a buyer.
Part 2 of 4
A simple example
A wholesaler contracts your home at $180,000 with a $500 deposit and a 30-day inspection period. They market it to investors at $195,000.
| What you see | What is going on |
|---|---|
| A tiny deposit and a long inspection window | Time to find an end buyer, with little at risk |
| "And/or assigns" on the contract | The contract is meant to be sold |
| The wholesaler cancels on day 29 | They found no buyer at their price; the contract had a door for that |
A wholesale offer is a contract on your house sold to somebody else. The fee is the gap between the two prices.
Part 3 of 4
What people get wrong
That a wholesaler is a cash buyer. They are a middleman with a contract, and the cash belongs to whoever they find.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
In your Room, this word explains itself where it appears.
Your Room defines wholesale in the step you meet it in, beside the document or the date it belongs to. Free to set up, with an agent or on your own.
Organize my saleFree to set up. Pay once when you list: $89 or $189. 7-day refund.