Tips for Working with Wholesalers: What to Know and How to Protect Your Seller

[Sarah Poehler]

From experience, wholesalers generally fall into two categories: ethical and unethical. It’s important to be cautious, smart, and aware of both types.

An ethical wholesaler is transparent about the process, views the property, and only submits an offer when they already have a buyer lined up. An unethical wholesaler, on the other hand, will call at all hours, spam call/text you, submit blind or lowball offers (sometimes half the listing price), and some may even attempt to market your listing as their own, which is illegal.

General Guidelines for Working with Wholesalers

These suggestions are based on experience and should be applied case by case:

1. No blind offers — Check Showing Time, or request proof they’ve seen the property before accepting an offer.
2. Request a higher Earnest Money Deposit (EMD) — This shows the buyer is serious and has something at stake.
3. Minimize or remove inspection periods — For as-is, cash deals, there’s little reason for lengthy inspections.
4. Shorten the closing timeline — For cash deals, if the seller can prepare the documents quickly, the buyer should already have verified funds. (For financing, evaluate accordingly and ask for a higher EMD if anything seems off.)
5. Maintain regular communication — Stay in touch with all parties, including the title company.
6. Avoid extensions unless the seller requests it — Don’t extend deadlines if the buyer fails to perform.
7. Use the cancellation option if needed — If the buyer doesn’t perform, the seller can initiate a cancellation agreement. Know this—and don’t be afraid to use it when appropriate.