What Are Wholesalers?

Real estate wholesalers are investors who secure contracts on properties—often distressed or undervalued—and then assign those contracts to other buyers for a profit. Unlike house flippers, wholesalers don’t actually purchase the home or invest in renovations. Instead, they act as middlemen, connecting motivated sellers with other real estate investors looking for off-market deals. While this strategy can be lucrative for investors, homeowners should be cautious when dealing with wholesalers, especially when they receive unsolicited offers.

For homeowners, the biggest concern with wholesalers is getting a fair price for their home. Since wholesalers profit by securing properties below market value, their offers are typically lower than what a seller might receive on the open market. While a fast, cash sale might sound appealing—especially for homeowners facing financial hardship—it’s important to explore all options before accepting an offer. Getting a professional appraisal or consulting a local real estate agent can help determine whether a wholesaler’s offer is truly competitive or if listing the home would bring in a higher price.

Another key issue is the contract terms wholesalers use. Many homeowners don’t realize that signing a contract with a wholesaler could lock them into an agreement where they cannot accept a better offer if one comes along. Additionally, if the wholesaler is inexperienced or fails to find an end buyer, the deal may fall through, wasting valuable time. To protect themselves, homeowners should carefully review any contract, ensure there are contingency clauses, and consider seeking legal advice before committing. Wholesaling is an ever-growing investment strategy, homeowners should prioritize their best interests by understanding the process and weighing all their selling options.