How It Works
Wholesaling 101
Snow Land is a land-specialized wholesaler.
Here we’ll describe what that means, but if you still have questions we’re happy to answer.
Marketing
Contract
Closing
Step 1: The Contract
Compared to a traditional real estate sale, we take the last step first: We accept parcels under contract.
This is a standard, assignable Purchase Agreement. No money is exchanged at this point, we just need a signature.
Step 2: Marketing
Once we have a contract, we can sell it. But to make a sale, we need marketing.
We’re thorough when it comes to contract marketing, and we use techniques like professional photography, aerial drone work, 4K videography, and deeply researched advertising copy.
Sometimes at this stage we’ll alternatively make a straight cash offer, either as an investment or just because we like the parcel. We’re obsessed with land, after all.
Step 3: Closing
Once we’ve identified an end-buyer (a.k.a. an ‘assignee’), it’s time to close the deal.
In New Hampshire and Maine the process is typically managed by a title company. In Vermont both the owner and end-buyer engage an attorney. The due-diligence process is normal, and deposits are held in a third-party escrow account. At closing, both the contract and the land get new owners, and money changes hands for the first time.
Should landowners work with Snow Land instead of a Realtor?
We do not provide the same services or fiduciary representation as an agent or broker. Agents work for you, on your behalf. We do not. Most owners sign with us for one of the following reasons:
They’ve already tried to sell using traditional methods and weren’t successful
They’re uncomfortable paying agent commission, or their land wouldn’t generate a worthwhile commission if sold
They’re committed to a firm ‘bottom line’
They feel our digital marketing, photography, and videography will ultimately achieve a contract assignment faster than a traditional sale
All The Details
Every common question we could think of. Did we miss something? Just ask!
The Contract
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An Option Agreement with a Purchase and Sales Agreement attached to it. The Purchase and Sales is the document that would actually be “assigned” (sold) to an end-buyer. A Land Disclosure is also signed at this point.
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The phrase “and/or assigns” is added to the Buyer field. This means the Buyer could be us, or it could be another party we assign (transfer) our rights to. In Vermont all real estate contracts are assignable regardless of this language.
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Our paperwork is only binding once an assignee is identified. Until then the landowner has the ability to withdraw penalty-free.
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We believe we can sell our contract faster than anyone else can sell the underlying land, so we don’t view the landowner’s ability to withdraw as a major risk.
Marketing
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Don’t think of it like a service. We promote contracts that we own, and we benefit when those contracts are assigned to an end-buyer.
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Obviously this can differ wildly from person to person, but many buyers love working with wholesalers because we are experienced in the industry yet also the direct decision-makers, not an intermediary.
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Sure do! Click here to learn more.
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New England does not have the same county-level government that the rest of the country does, here everything is town-by-town. So when an end-buyer is searching for a very specific use-case, like RVing for example, it can be tiresome to research zoning for town after town. We try to ease those difficulties.
Closing
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The title company or closing agent will expect a document called an Assignment Contract. So we sign one with the end-buyer and send it in with every order.
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Yes. All parties receive a full itemization of where every penny in the transaction is going.
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Contingencies or other terms can be added directly to the Assignment Contract during negotiations. The end-buyer has all the same protections they would in a traditional sale.
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Just like they always would: with a Purchase and Sales agreement. It won’t be used at closing, but we will transcribe all the terms into an Assignment Contract for the end-buyer’s review and signature.
Our Relationship
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A realtor or broker sells real estate on behalf of another. A wholesaler sells a contract they own. (Or more precisely, a wholesaler sells their own position in a contract.)
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No, a wholesaler does not represent the owner of the underlying real estate in a fiduciary capacity.
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Sometimes! Click here to view our Cash Offers page.
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No. Our efforts would conflict with a seller’s agent, and we don’t want to step on our colleagues’ toes.
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Visit our contact page and answer as many questions as you’re able. The most important thing we need to know is your “bottom dollar:” the lowest amount you’re comfortable walking away with.
This page is provided for information purposes only and is not a description of services. No services are offered to or solicited from the landowner or reader herein. Contract wholesaling and/or assignment is not conducted on behalf of the landowner.
