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Why Realtors Dread Dealing with Wholesalers: Unveiling the Real (Estate) Dynamics

Why Realtors Dread Dealing with Wholesalers: Unveiling the Real (Estate) Dynamics

I am sure you are tired of the endless calls, texts, emails blasts with low-ball offers. Land wholesaling tempts investors with big returns buying discounted lots, developing them, then flipping the improved parcels for windfall profits. However, Realtors often approach the same rapid land deals with rolled eyes instead of open arms. Between diverging business priorities, pay structures at odds, ethical questions raised, and influence worries over local land markets, wholesaling friction with realtors runs deep.

Yet symbiosis seems attainable given realtors’ buyer/seller facilitation skills and wholesalers’ investment nimbleness around undervalued land plots – if collaborative common ground can replace contention. Enter Pream Lands – a land wholesaling disruptor bridging such divisions by aligning agent and investor rewards for cooperative success.

Decoding the Land Wholesaler-Realtor Discord While land wholesalers and realtors intersect around properties, their motivations and models widely differ, brewing discord. Wholesalers proactively identify unused land for discounted purchase then develop/resell the plots for profit. Realtors reactively facilitate sales for individual client interests per ethical guidelines.

Core disconnects driving a wedge despite potential synergy include:

The commission Realtors earn from land sale percentages, seeking maximum parcel resale value for individual clients. Wholesalers focus on wide profit spreads between cheap acquisition and development resales. This commission-centric versus margin-driven conflict routinely pits realtors against wholesalers instead of cooperative gain.

Realtors handle transactions and paperwork guiding clients across listing, sales, and closing stages following codes of conduct. However, wholesalers directly negotiate land deals then flip contracts to developers. Bypassing realtors’ strengths supporting individuals through sales spurs resentment over unsatisfactory outcome.

Ethics concerns also fuel significant tensions between traditional realtors like myself and land wholesaling investors. As licensed Real Estate professionals, we must abide by codes of conduct enforced through TREC and other associations. These codes cover crucial areas like truthful advertising, full disclosure of property conditions, and the fiduciary duty to represent client interests first. Strict ethics rules aim to ensure fair, transparent treatment across all land sale stakeholders. However, investors snapping up vacant land and lots operate independently without oversight obligations around ethical practices or standardized norms. Some wholesalers leverage no conduct codes using questionable tactics to maximize personal profit margins – like targeting distressed owners with relentless sales pressure.

While certainly not every wholesaler utilizes deceitful methods, those taking ethical shortcuts tarnish the whole industry’s reputation. When news breaks of wholesalers negotiating opportunistically against vulnerable landowners, public criticism toward those investors rightly builds.

Most wholesalers are NOT licensed Real Estate agents, frequent ethics breaches among wholesalers also breed distrust toward any realtors collaborating on their discounted land deals. Community members begin viewing participating realtors as greedy enablers also cutting corners for bigger commission checks over principles. Essentially wholesalers’ poor conduct stains perceptions of we realtors as well, making brokers hesitate to partner with land flip investors.

While wholesalers technically boost land supply through development flips, realtors debate whether outbidding farmers or other owners improves affordability and access. Wholesaling volume may also condition buyers expecting unrealistic purchase timelines skipping important land due diligence. Without regulation, realtors see short-term investment priorities conflicting with long-term community interests in local land markets.

Selling land fast in Texas a major focus for Pream Lands has been helping landowners in Texas who need to sell vacant, raw land quickly. Our company’s streamlined process and investor partnerships allow them to make fair cash offers and close land sale transactions in as little as 14 days. This can be a major benefit for Texas landowners facing foreclosure, going through a divorce, or inheriting unwanted properties they need to liquidate rapidly.

Bridging Wholesaler-Realtor Divides with Pream Lands

Bridging Wholesaler-Realtor Divides with Pream Lands

Recognizing ingrained tensions between wholesaling and traditional land brokerages, Pream Lands designed its investment model specifically to align incentives between clients, agents and land buyers. Powered by predictive data steering equitable land pricing, Pream Lands streamlines transaction support to ease frustrations while compensation tied to end-values incentivizes win-win cooperation.

Let’s examine Pream Lands’ thoughtful bridges fusing wholesaler and agent strengths:

I’ve dealt with many wholesalers and, like you, have NOT been impressed. Thats is why we promise to be different. We are ethical, knowledgeable and transparent. We will pay realtors FULL COMMISSION on land parcels instead of just tiny acquisition fee typical with most wholesalers. This rewards realtors proportionally for their effort while incentivizing collaboration to boost final resale values together rather than adversarial negotiations around individual margins.

Pream Lands will give an equitable prices based on comparable sales, economic trends and future development indicators – maximizing seller equity returns even in disadvantaged cases.

Through incentive and ethics alignment, transparent sourcing practices and simplified collaboration roles for realtors, Pream Lands purposefully fuses the best of wholesaler investment prowess with realtor facilitation expertise. Partners can collectively capitalize on land redevelopment upside without typical tensions tainting transactions.

With the uncertainty of changes and after-effect will come of the NAR law suit and the potential challenge to standard real estate fees in Texas could force realtors to adapt their pricing models and demonstrate their value more effectively to clients. Realtors will need to be more flexible and creative. I am just another tool in you tool belt. Please call, text or email me and start a conversation.

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