The real estate industry has changed dramatically in recent years, and it can be confusing to try to figure out what’s going on when you’re approached by professional buyers. Let’s decode some real estate wholesaler jargon by discovering what a double closing is and how it affects Boise house sellers.
What Is a Real Estate Wholesaler?
Before we get straight into what a double close is, we first need to understand what a Boise real estate wholesaler actually is.
Over the last decade, the online real estate sector has evolved significantly, with organisations gradually obtaining household reputation. These wholesalers look for for-sale homes in hot areas that they can swiftly purchase and resell to a new owner.
The real estate wholesaler effectively serves as a middleman, facilitating a deal that would otherwise be impossible to complete. From there, we can have a clearer idea of what a double close is and why it’s becoming increasingly popular.
Explaining the Double Close
So, let’s keep in mind the quick and dirty explanation of what the wholesaler does from our previous point: they buy up your property and then turn around to sell it to a buyer.
A wholesaler wants to complete this as rapidly as possible while maintaining a large profit margin. When a wholesaler buys a Boise property from you, it’s more than likely that they already have a buyer lined up.
They close on the property with you and then immediately transition to closing on the property with the new buyer at the same time – this is the double close.
The Impact on Sellers
You could be thinking that this seems like a firm moving in and trying to make a quick buck, and you’re right to some level. Often, the wholesaler will sell your property for a profit, but you’ll more than make up for it with the rapidity of the sale.
The key here is that the wholesaler takes care of all of the legwork you’d otherwise have to do or sit around waiting for the right buyer to come along. The wholesaler offers the seller a quick and easy way to sell their home, and the wholesaler pre-arranges a buyer so that the entire transaction is profitable for them and thus worth their time and effort.
Wholesaler vs Flipper
We have a concept in our heads that house flippers function in this exact same fashion, but there’s a distinct difference between these two classifications of real estate professionals.
House flippers, also known as investors in the real estate industry, buy a property, fix it, make alterations to appeal to trends or a specific demographic, and then sell it for a profit. An investor is frequently on the lookout for less-than-ideal starting houses or even large fixer-uppers that become projects before being sold.
A wholesaler, on the other hand, is doing all possible to bridge the gap between the house sellers and the buyers. Selling to a wholesaler entails skipping over a lot of the regular nitty-gritty of repair and inspection contingencies in favor of settling on a final price and weighing the offer.
Finally, selling to a wholesaler is a personal choice that will work for some and not for others, and it is up to you, the Boise house seller, to judge whether their price is reasonable.
Your Guidance to the Double Close in Boise Real Estate
Contact our professional staff at (208)314-1350 if you have any questions about the double closure procedure or anything else relating to the Boise real estate market!