What is real estate wholesaling?
Some buyers sign a contract on a house and then sell that contract to someone else. Here's how it works, and what Virginia and Maryland law says about it.
No obligation. No pressure. Takes about 2 minutes.
The short answer
Wholesaling is when a buyer puts a house under contract and then assigns, or sells, that contract to another buyer for a fee instead of buying the house themselves. The new buyer closes with the seller at the price in the contract. In Virginia, the licensing law's definition of a real estate broker includes dealing in assignable contracts for compensation on two or more occasions in any 12-month period. In Maryland, a wholesale buyer must tell the owner of an owner-occupied home in writing, before signing, that the contract may be assigned.
Step by step
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How an assignment works
The contract lets the buyer transfer their right to buy, often by naming the buyer "and/or assigns." The original buyer passes that right to someone else for an assignment fee, and that person closes with the seller.
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What it can mean for you
The person you negotiated with may not be the one who closes. If no one takes over the contract, the closing may be delayed or fall through, depending on the contract's terms. Read the assignment, cancellation and deposit clauses before you sign.
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Virginia
Code of Virginia § 54.1-2100 defines a real estate broker to include anyone who, for compensation, sells, buys, negotiates or otherwise deals in real estate contracts, including assignable contracts, on two or more occasions in any 12-month period. That places repeated contract assigning inside the state's real estate licensing law.
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Maryland
Real Property § 10-715 covers owner-occupied homes of one to four units. A wholesale buyer must disclose in writing, before the contract is signed, that it may assign the contract. If it doesn't and then assigns it, the owner may cancel without penalty at any time before closing, whatever the contract says. It applies to contracts signed on or after October 1, 2025.
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Questions to ask any buyer
Will you close yourself or assign the contract? When will I know who the final buyer is? What happens to the deposit and the closing date if no one takes the contract? Get the answers in writing, and have an attorney review the contract if anything is unclear.
Sources: Code of Virginia § 54.1-2100 (definition of real estate broker) · Maryland Code, Real Property § 10-715 · Maryland 2025 Laws, Chapter 509 (SB 160)
This guide explains the general rules in Virginia and Maryland as written in each state's code. It isn't legal advice. How they apply depends on the contract and your situation, so talk to a real estate attorney about your case.
Cash offer vs listing
Example: a $250,000 home
| Offer | $205,000 |
|---|---|
| Repairs | $0 |
| Commissions | $0 |
| Closing costs | $0 |
| You walk away with | $205,000 |
| In 7 to 14 days | |
| Sale price | $250,000 |
|---|---|
| Repairs | about $8,000 |
| Commissions | about $13,800 |
| Closing and holding | about $6,000 |
| You walk away with | about $222,200 |
| In 60 to 90 days | |
Example only. Your numbers depend on your home and market.
Whoever ends up buying, seeing the cash offer next to what listing could net shows what you'd actually walk away with.
Frequently asked questions
Is wholesaling regulated in Virginia and Maryland?
Yes, in different ways. Virginia's broker definition covers dealing in assignable contracts for compensation two or more times in 12 months, and Maryland requires written disclosure to owner-occupants and gives them a right to cancel if it's missing. An attorney can tell you how either applies to a specific deal.
Does an assignment change the price I get?
Not by itself. The seller receives the price in the contract, whoever closes. The assignment fee is a separate amount between the original buyer and the new buyer, so the seller may not see what the new buyer was willing to pay.
What can I do in Maryland if I wasn't told?
If a wholesale buyer didn't give the written notice and then assigns the contract, § 10-715 lets the owner cancel without penalty any time before closing. It covers owner-occupied homes of one to four units and contracts signed on or after October 1, 2025.
Who are you?
We are real estate investors based in Baltimore, helping homeowners since 2016. We buy houses directly for cash. We are not a licensed real estate brokerage and do not list homes ourselves; if listing could get you more, we show you the math so you can choose.