Last month, a homeowner in Canton, Ohio received what seemed like a promising offer on their house. The buyer was enthusiastic, made a verbal offer of $69,900, and promised a quick, hassle-free closing. It wasn’t until their real estate agent started asking probing questions that the truth emerged: this “buyer” had no money to purchase the home and no real estate license. Instead, they planned to turn around and sell the purchase agreement to someone else for a profit.
This wasn’t a unique incident. Across Ohio, homeowners—particularly seniors, those with properties needing repairs, and people facing financial distress—are increasingly finding themselves targeted by real estate wholesalers. While some operate legitimately, others employ tactics that strip homeowners of their equity and leave them blindsided at closing.
How Real Estate Wholesaling Really Works in Ohio
Understanding how wholesaling works is crucial. Unlike traditional home buyers or even house flippers who purchase properties to renovate and resell, wholesalers operate differently. They enter into purchase agreements with no intention of buying the property themselves. Instead, they aim to sell their rights under that contract to another investor for a fee.
Think of it like buying concert tickets only to resell them at a markup—except we’re talking about someone’s home and life savings.
Ohio Senate Bill 192: New Real Estate Wholesaling Laws
The Ohio legislature has taken notice. Senate Bill 192, currently under consideration, aims to bring transparency and accountability to an industry that has operated with limited oversight. The bill’s introduction was sparked by stories like the Canton incident and countless others where homeowners found themselves caught in confusing transactions they didn’t fully understand.
One of the most troubling aspects of current wholesaling practices is the lack of transparency. Wholesalers often present themselves as direct buyers when they have neither the means nor the intention to purchase the property. They may lock up a property under contract at a below-market price, then scramble to find an actual buyer—leaving the homeowner in limbo.
Real Estate Wholesaling Risks: What Can Go Wrong for Ohio Homeowners
Consider what happens when a wholesaler can’t find an end buyer. In many cases, they terminate the deal at the eleventh hour, leaving sellers who may have already made moving plans or committed to other purchases in a desperate situation. Worse yet, some sellers don’t realize until closing that their home was marketed and sold for a significantly higher price than what they agreed to accept.
New Ohio Real Estate Wholesaling Regulations: SB 192 Requirements
Senate Bill 192 would require wholesalers to provide clear written disclosures before entering into any binding contract. They would need to reveal:
- That they’re acting as wholesalers seeking to profit from the transaction
- Their intention to assign the contract to another party
- Whether they hold a real estate license
- That the price offered may be below market value
The bill would give homeowners the right to cancel contracts and keep earnest money if wholesalers fail to make these disclosures. It would also classify violations as deceptive practices under Ohio consumer law, giving the Attorney General’s office enforcement power.
How to Protect Yourself from Predatory Real Estate Wholesalers in Ohio
If you’re considering selling your home and someone approaches you with a quick-cash offer, pause before signing anything. Ask direct questions:
- Are you the actual end buyer?
- Do you have proof of funds to purchase?
- Are you a licensed real estate professional?
- Will you be assigning this contract to someone else?
Remember: legitimate buyers should be transparent about their role and have the means to complete the purchase. Your home is likely your largest asset—you deserve to know exactly who you’re dealing with and how they plan to handle the transaction.
How to Report Real Estate Wholesaling Fraud in Ohio
If you encounter deceptive wholesaling practices, report them to the Ohio Attorney General’s office. Consider working with licensed real estate professionals who have legal obligations to represent your interests and must follow strict professional standards.
The best protection against predatory practices is knowledge and patience. While the promise of a quick sale might be tempting, understanding who you’re dealing with and getting professional advice can save you from becoming another cautionary tale in Ohio’s real estate market.
Work with Licensed, Legitimate Cash Home Buyers in Columbus Ohio
If you’re considering selling your home and want to work with a legitimate, transparent cash buyer, EasySell Cash Homebuyers in Columbus offers a professional alternative. Unlike wholesalers who may not be able to close, we’re a licensed LLC in the State of Ohio, and our owner holds an active real estate license. We provide direct purchases with proof of funds, transparent documentation, and no hidden contract assignments. When you work with us, you’ll know exactly who you’re dealing with and how the transaction will proceed. To learn more about selling your home directly to a legitimate cash buyer, contact EasySell Cash Homebuyers at 614-969-0624. We’re happy to answer any questions and provide all necessary documentation upfront, ensuring you can make an informed decision about your property sale.
