If you’ve been searching for buyers to sell a house fast in Milwaukee, you’ll likely hear the terms wholesaler and cash buyer being thrown around. Different types of buyers want to purchase your property as fast as possible. So, let’s break down these differences so you can make an informed decision.
What Is a Real Estate Wholesaler?
A wholesaler in real estate is an intermediary that places a property under contract and usually at a discounted value. They do this for assignment purposes to a cash buyer or investor. Distressed properties find wholesalers very interested in their market. They buy them for under-market value and resell the contract to a yet-to-be-determined buyer in the hopes of netting some profit.
What Is a Cash Home Buyer?
Cash home buyers are individuals who purchase properties using their cash directly. They do not need financing. They can close a sale within the shortest time possible. Speed and ease matter; they will pay a just price for the house, given its state and the current market price.
How You Tell a Cash Buyer from a Wholesaler
It becomes essential to distinguish between wholesalers and cash purchasers when a buyer wants to purchase a house for cash. Here are some indicators:
“Assignees” in the Contract
Wholesalers include “assignee” clauses in contracts, which enables them to transfer the agreement to another buyer. If you see this term in the contract, it’s likely a wholesaler.
Exclusive Timed Contracts
Usually, wholesalers ask for an exclusivity period to shop your contract for up to 30 days with the promise to buy from you. However, at that time, you cannot accept another offer, and your deal can end if they do not find a buyer.
No Upfront Payment
Wholesalers usually don’t offer deposits or earnest money since they lack the funds to buy the property. In contrast, cash buyers frequently provide a deposit to demonstrate their seriousness.
Lowball Offers
Wholesalers will give you less so that they can sell the home at a profit. Cash buyers will provide an offer based on the property’s actual value and have a higher chance of giving a fair price.
Property Ownership
Most wholesalers do not own properties. You can check public property records for their name to verify this. Cash buyers usually have a history of owning properties.
Pros and Cons of Working with Wholesalers
Pros
- May result in a quick sale if they find a buyer fast
- Can be an option for distressed properties needing extensive repairs
Cons
- Offers are typically lower than the property’s market value
- No guarantee of a successful sale if they can’t find a buyer
- Timed contracts can delay your selling process
Pros and Cons of Working With Cash Buyers
Pros
- Direct transactions with no intermediaries
- Fast and predictable closings, often within days
- Fair market-based offers
Cons
Offers may be slightly lower than traditional market sales due to the speed and convenience.
Which One Works Best for You?
If you want a hassle-free transaction and need to sell your house soon, cash home buyers in Milwaukee are the best choice. They offer straightforward, transparent transactions and remove the uncertainty of dealing with wholesalers.
Because wholesalers have dated contracts and lowball proposals, dealing with them can be difficult. At Metro Milwaukee Home Buyer, our cash offerings are clear-cut and free of surprises and additional costs. Contact us now for a reasonable cash offer if you’re looking for a hassle-free approach to selling your Milwaukee home quickly.