You get a call, email or post-card from someone offering to buy your Austin | Round Rock home off-market for cash and you are captivated by the amount of money you can make by selling it. Before you do, there are a few things that you should understand and consider.
- Should I sell and take the money?
- What is selling wholesale?
- Should I sell my property wholesale?
- Can I sell my home with a Realtor if it’s not in good condition
- Can a Real Estate Agent sell my home fast?
- Is there a benefit to selling “wholesale”?
- Do I net more money if I sell wholesale?
- Are wholesalers honest? Are Real Estate Agents?
- Do wholesalers take advantage of ignorance?
- Wholesalers offer a fixed price and Realtors get a % of the sale.
- What are assignable contracts.
- What are the differences between selling wholesale and retail.
Should I sell and take the money?
The thought of selling your home and taking the cash equity is tantalizing. I’ve thought about it many times but I always come back to the same questions. Where will I go? All of the other real estate in town is also inflated.
With the world in such a chaotic state, investing your money in your primary residence is probably one of the safest investments you can make. Cash in the bank will shrink due to inflation. The stock market and other investments are unpredictable. If you own your home, your housing costs will rarely change much but if you rent, they will rise with inflation, supply and demand. If the economy crashes, you have a place to live until the good times return.
What is the difference between selling Wholesale or Retail?
Those buyers that advertise, send post cards, emails, and telephone offers to buy your house are called wholesalers. When someone buys or sells a property without going through a Real Estate Agent, it’s called off-market or wholesale. When you buy or sale using a Realtor, it’s called a retail real estate transaction.
Should I sell my property wholesale?
If a wholesaler convinces you to sell your property to take advantage of the equity in your Austin or Round Rock home, you should first understand the advantage and disadvantages of selling off-market/wholesale versus retail with a Real Estate Agent.
- Can a Real Estate Agent sell my home fast?
Yes, they can offer ALL of the same sales strategies as a wholesaler.
- Can I sell my home with a Realtor if it needs repair?
Yes, your home does not need to be in good condition to use a Realtor.
- Will I net more money if I sell wholesale?
It’s very unlikely.
- Are there benefits to selling wholesale?
I cannot think of any. Really!
Are wholesalers honest? Are Real Estate Agents?
No one can judge the honesty of someone they do not know. However, the wholesaling business is often based on taking advantage of a seller’s ignorance. Wholesalers continuously market for home sellers who are in distress or have a property that they don’t want or is in poor condition. All of these selling conditions can also be handled by a Realtor and you may also net more money using a Real Estate Agent, even after paying the fees. Realtors can offer most anything that a wholesaler can offer.
What are the main differences between selling wholesale and retail?
The biggest differences between the two are in the contract. A wholesale contract usually entails the wholesaler getting the right to buy the property at the contracted price for a period of time. The wholesaler will then attempt to find a buyer to buy the property at a higher price. The contract also usually gives them the right to sell the “assignable contract” to another party who may then sell the contract to yet another party. The lower the contract price the wholesaler can get on the property, the more profit they can potentially make. Often, a wholesale contract does not compensate the seller of the wholesaler cannot find a buyer.
On the other hand, a contract with a Real Estate Agent is a contract between the seller and the Realtor to provide a service to sell the property (not to buy it). A Real Estate Agent is usually paid a percentage of the sales price, so the more money the seller makes, the more the Realtor makes. The retail market is also much larger than the wholesale market which provides a much greater opportunity to find as-is, cash and rehab buyers.
In summary, I would always recommend using a Real Estate Agent to sell your property. Realtors can sell properties as-is, cash and quickly, just like a wholesaler. Remember, the more the seller makes, the more the Real Estate Agent makes whereas it is the opposite with a wholesaler. Realtors are also licensed by the state and are required to have training. Real Estate Agents also have access to a much larger pool of potential buyers. These differences can potentially mean a greater chance of success and a good chance of dealing with someone with experience and integrity.
ROCK Properties Realty will Help Sell Your House Regardless of Condition or Situation.
We hope that this post will help you understand differences between selling wholesale/off-market and retail and which option might be the best option for you. ROCK Properties is a licensed Texas Real Estate Brokerage with offices located in Round Rock Texas. We have been in business for almost twenty years and have experience with both the wholesale and retail sides of the Austin Texas real estate market. We can assist clients with both retail and wholesale real estate transactions but we are biased toward the retail options.
If you do have a property that needs work, you need to sell quickly or as-is, ROCK Properties Realty can offer you several options. We can buy it wholesale, fast and as-is (Off the MLS), we can help you fix it and sell it retail (On the MLS) so you can benefit from the improvements or we can help you sell it as-is retail (On the MLS). Either way, we can help you sell your property fast with no, repairs, hassle, or stress. We can also buy your house without appraisal or inspection in any condition in the Austin, TX area and you can choose the closing date that best suits your needs.
If you live in the Austin | Round Rock, TX area and have property problems, contact ROCK Properties Realty. We can assist with issues such as; back taxes, bad tenants, code violations, divorce, filled with clutter, homes in bad conditions, inherited houses, overwhelming maintenance, Preforeclosure, vacant houses, with severe damage, without any repairs, & much more. We also buy houses that are in good condition.
ROCK Properties Realty provides exceptional service and specializes in residential and commercial Real Estate especially the areas of Austin, Round Rock, Cedar Park, Leander, Pflugerville, Georgetown, Hutto, Liberty Hill, Florence, Bertram, Taylor, Thorndale, Thrall, Jarrell, Buda, Kyle, Manor, Williamson County, Travis County and Bell County.