What Is Wholesaling (Real Estate)?

In wholesaling, the wholesaler's product is the contract, not the house. They negotiate a purchase agreement with a seller, then find an investor willing to pay more for the right to buy, keeping the spread as an assignment fee.

Wholesaling is legal and common, but it introduces uncertainty for sellers: the person you negotiated with may not be the one who closes, and the deal depends on them finding an end buyer in time.

If you want certainty, ask whether you're dealing with a direct buyer who closes in their own name or a wholesaler who plans to assign the contract — and what happens to your deal if they can't find an end buyer.