Updated almost 10 years ago on . Most recent reply
wholesaling
OK, I am absolutely going to show my ignorance, but I've never heard the term wholesale with respect to real estate. Someone please explain this to me.
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A wholesale house would be one that is available at a significant discount from that desired by a regular home-buyer, a retail house. You'll see 65% of the after-repaired value as a common starting point...and then items that require fixing have to be subtracted from that number.
A wholesaler is a person who aims to buy low and sell higher. Sometimes they wholesale to rehabbers, while other times they find houses in good condition that they can sell on the MLS.
The discount at purchase may be due to any number of situations: foreclosure coming up, financial difficulty, an arrest, a divorce, medical situation, a vacant or abandoned house, or an owner's death. Any reason that a seller needs to sell can create the right conditions for a wholesale deal.