Buyer or Middleman?
Beware the Wholesaler
There are a lot of people who claim to be house buyers, but can't really buy your house. These people pose as a buyer, but do not have the ability to close. After getting a contract, see search for a buyer for that contract, not the house, and make an assignment fee on the difference. This woudl not really be a problem if they let you know up front, but it becomes a problem when they can't find a buyer and your sale falls through.
The goal of the wholesaler is to get a signed contract, pay very little earnest money, and then sell the contract for a profit. Before you sell your house, read up on on real estate wholesaling.
I actually buy your property. This is why you never have to sign a contract with me (but you can). A and remember, you can change your mind at any time.
- Contract - They insist on a written contract. This is thier inventory - it's really what they are buying. If they insist on a contract, you should insist on 5% non-refundable earnest money.
- Low Earnest Money - They try to keep earnest money low, because so many of these sales fall through.
- Long Closing Time - They need weeks or months to close, so they can find a buyer.
- Back Out Clauses - The contract has an escape clause, that allows the buyer to back out. Sometimes it seems legitimate and is called a due dilegence or inspection period.