Wholesalers let house sellers know that they don’t have to pay similar costs they would if they sold it through an agent. That is not exactly true.
In a wholesale deal, the seller actually pays selling costs by taking a beneath-market cost for the house. A real estate firm will normally charge a 6% commission to professionally market and sell a house. Regularly, home sellers pay a lot higher assignment charges while going through a wholesaler.
For instance, I bought a flip the previous fall from a wholesaler for $208,000, which was a little underneath fair market value price for the state of the house. The seller just left with $175,000 cash at closing. The wholesaler stashed the difference of $33,000. That implies the seller paid a commission of 15.8%!
Furthermore, some closing costs cannot be skipped. For example, transfer taxes, recordation expenses, and settlement costs.