Wholesaling question (newbie)

6 Replies

Hi, I am incredibly new at Wholesaling, and I am learning as I go. My question is regarding what the house is assessed for and how that works when I make an offer for way less than what it is assessed for? How does that effect me and the seller? If the house is assessed higher than what I offer, are buyers most likely going to turn down my offer, from your experience? Thanks in advance!! 

Hi @Kendra Wilson the assessment of the home is generally not indicative of the value of the home. Regardless of if it is, wholesaling works with motivated sellers who NEED to sell and are looking for a way out. You are there to provide that avenue for them. If they don't accept your offer, that's fine - just move on to the next seller.

@Kendra Wilson

When you are evaluating a property you should be trying to determine the fair market value instead of the assessed value, in other words, what would a retail buyer pay for it if it was all fixed up and in great condition.  Once you have that number then you can deduct your profit and costs to determine your offer.  

To answer your other question, yes, 95% of sellers are going to turn down your offer. Like Dan said above, you should be looking for motivated sellers you can help.

Originally posted by @Dan Barli :

Hi @Kendra Wilson the assessment of the home is generally not indicative of the value of the home. Regardless of if it is, wholesaling works with motivated sellers who NEED to sell and are looking for a way out. You are there to provide that avenue for them. If they don't accept your offer, that's fine - just move on to the next seller.

 Thank you Dan! I really appreciate your advice. That makes perfect sense! 

Originally posted by @Shawn Kostoff :

@Kendra Wilson

When you are evaluating a property you should be trying to determine the fair market value instead of the assessed value, in other words, what would a retail buyer pay for it if it was all fixed up and in great condition.  Once you have that number then you can deduct your profit and costs to determine your offer.  

To answer your other question, yes, 95% of sellers are going to turn down your offer. Like Dan said above, you should be looking for motivated sellers you can help.

 Thanks Shawn, I appreciate your response! I’m still learning. It sounds like I just need to be making offers constantly in order to catch that one great deal from a motivated seller. Much appreciated!