Wholesaling a house that is listed with a realtor?

Question

How would wholesaling a property that is already listed with a realtor work? How would they get there commission? How would the contract be? Would you send the contract the realtor for them to the sign or does the actual seller still sign?

Dan Maciejewski · Answer

Yes, In our market, an assignable contract is not a strong contract at all.  I vet my client's buyers as much as possible, including speaking with their loan officer or verifying funds for cash offers.  An assignable contract to a wholesaler would most likely mean that there isn't an actual buyer yet -- My fiduciary duty would have me strongly advising against taking that offer.

Unless, of course you are making it assignable, but you would buy it under the terms of the contract yourself.  And it would have to be an offer at market value -- the seller has already pledged a lot of money to a Realtor and co/buyer's agent to know that they are marketing the house to buyers willing to pay market value -- and they negotiated that fee up front before listing. Why wouldn't the seller want to realize that money instead of giving it to a buyer or wholesaler?

And on the other side, why wouldn't a buyer pay the listed price for the house instead of the listed price plus an additional fee.

Mike Cumbie · Answer

@Anasya Taylor

It's hard to Wholesale something that is already listed. Generally speaking it is on the MLS across many sites has signs etc. You are trying to get it under contract (No smart agent is going to let an "assignable contract" through without knowing what is going on). Then the work begins, you have to find someone who has no idea it exists and is willing to pay what they can find it for online + extra money to cover your fee.

best to wholesale off market houses

Michael D Morrow · Answer

Gotcha. As a beginner investor, should I focus on the non-realtor deals (FSBO, Vacant etc) more than realtor assigned?

Karen Rittenhouse · Answer

@Michael D Morrow I have no trouble doing any of those techniques. What matters is the price. I'm happy to make profit anyway that works, and they all do.

Karen Rittenhouse · Answer

@Anasya Taylor Wholesaling is a selling technique, not a buying technique. You would buy the property from the real estate agent just like any other purchase. Then you would us the wholesaling technique to mark it up and sell it to your buyer.

You may be confusing this with assigning where you get a property under contract and sell the contract. To do that, you would still work with the selling agent (you'll do the contract with them), and they will get their commission when your contract buyer sells the contract and the property closes.

Good luck.

Anasya Taylor · Answer

@Jason DiClemente So would most realtors decline? Like do most of them not want you to wholesale it even if the agreement is actually going to them?

Wholesaling a house that is listed with a realtor?

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