A wholesaler finds a property, puts it under contract with the owner, and then sells their place in that contract to a buyer like you. You are not buying from the owner directly, and the wholesaler usually never owns the house. What you are buying is the right to close on it at the contract price, plus the wholesaler's fee.
What the asking price means
The asking price is what you pay in total: the price the owner agreed to plus the wholesaler's fee. You will rarely see the split, and you do not need to. What matters is whether the whole number works against what the house is worth once it is fixed.
The numbers on a listing
- Asking. Your purchase price, all in.
- After-repair value (ARV). What the house should sell for once renovated. It is the seller's estimate, ideally backed by comparable sales. See ARV and spread.
- Repairs. The seller's estimate of the renovation, often given as a range.
- Spread, before costs. After-repair value minus asking minus repairs. It is the room you have before closing, holding, financing and selling costs, not your profit.
- Offer deadline and close by. When the wholesaler stops taking offers, and the date their contract with the owner has to close.
Six things to check before you offer
- The comparable sales. Are they close by, similar in size and age, renovated, and sold recently? Three good ones beat ten loose ones.
- The repairs. Walk it, or have someone walk it. Roofs, foundations, plumbing and electrical are where estimates go wrong.
- Your costs. Closing on both ends, holding the house while you work on it, money if you borrow it, and an agent when you sell. Run them in the calculator below.
- The timeline. Can you close by the close-by date? If you need a lender, ask how long they take before you offer.
- The paperwork. Ask how it closes (assignment or double close, see the difference) and which title company or closing attorney holds it.
- The wholesaler. Every listing here shows the seller's record: what they posted, assigned and closed, and what buyers said about them.
Making the offer
On a listing, an offer carries your amount, your earnest money, your close date and, if you have it, proof of funds. The wholesaler sees your record, never anyone else's offer. If they counter, you can accept it, decline it, or offer again. See earnest money for what to expect once it is accepted.