A lot of "cash offers" don't come from the person who'll actually buy your house — they come from a wholesaler who resells your contract. Here's the difference, the red flags, and the 3 questions that expose it.
Buys with its own funds. Closes it. Contract price = closing price.
Puts your house under contract and resells the contract to a third party.
InterNACHI Inspector #21032009Contract price = closing priceA cash home buyer purchases your house directly with its own funds and closes on it. A wholesaler instead puts your house under contract and then sells (assigns) that contract to a third-party investor for a fee — they may never intend to buy it themselves. The risk: wholesalers often lock in a high number to win your signature, then the end buyer inspects, renegotiates the price down, or walks — and if no buyer is found, the deal collapses and you've lost weeks.
Wholesaling is legal in Pennsylvania, but the wholesaler usually isn't a licensed agent and isn't the buyer. ABE Homes is a principal buyer, not a wholesaler: owner Mike Sup is an InterNACHI Certified Home Inspector who inspects upfront, so the contract price is the closing price — no assignment, no daisy-chain, no post-contract renegotiation. Before you sign anything, ask: do you buy with your own funds or assign the contract, can you show proof of funds, and who shows up at closing?
Answered by Mike Sup, InterNACHI #21032009 — verified Pennsylvania cash home buyer since 2010
Wholesaling is legal in PA. This isn't an attack — it's how to tell who actually closes on your house.
A wholesaler resells your contract to a third party who can renegotiate or walk; a principal buyer purchases and closes it themselves. ABE is the buyer — and because Mike inspects upfront, the contract price is the closing price. Before you sign, ask who shows up at closing.
Red flags
They talk about "their buyer" or "their investor"
You're not actually selling to them.
The contract says "and/or assigns"
They can transfer the deal to someone else.
A long inspection period they can cancel within
14–30 days to walk away at no cost.
Little or no earnest money; no proof of funds
Nothing at stake if they bail.
The number sounds too high to be real
A tactic to lock up your signature.
Vague about who shows up at closing
Because they don't know yet — or it isn't them.
30 seconds
Before you sign anything, ask these.
"Do you buy with your own funds, or do you assign the contract to someone else?"
A real buyer says "my own funds" without flinching.
"Can you show me proof of funds today?"
A real buyer has it ready. A wholesaler gets tangled.
"Is the contract price the guaranteed closing price, in writing?"
ABE says yes — backed by Mike's inspection, not a guess number.
A wholesaler isn't buying your house to keep it or fix it. They put it under contract at one price, then shop for an investor who'll pay more — the spread is their fee. Their contract almost always includes an 'and/or assigns' clause letting them transfer the deal, plus a long inspection period (14–30 days) they can cancel within at no cost. You're locked in; the wholesaler isn't. If they can't find a buyer, the deal simply falls through.
The pattern is predictable. The wholesaler locks in an attractive number to get your signature. Then they show the house to their investor. The investor sends their own inspector, finds (or invents) problems, and asks for a discount. That discount rolls down to you as a 'renegotiation' days before closing — right when you've already canceled other options and have less time. Or worse: the wholesaler never finds a buyer, cancels inside their inspection window, and you're back to square one weeks later.
ABE is a principal buyer: we buy with our own funds and close it ourselves — there's no third party who has to show up. And the difference no wholesaler matches: Mike IS the inspector (InterNACHI Certified #21032009). He inspects the house before making the offer, not after. That's why the contract price is the closing price, in writing. No second inspection, no surprise assignee, no last-minute renegotiation. The number you sign is the number you get.
Yes, wholesaling is legal in Pennsylvania. But the wholesaler usually isn't a licensed agent and isn't the end buyer — they put your house under contract to sell (assign) that contract to another investor for a markup. The risk isn't legality; it's the uncertainty of who actually closes, and at what price.
Ask three things: Do you buy with your own funds, or assign the contract? Can you show me proof of funds? Who shows up at closing? A wholesaler will be vague about the end buyer, and their contract will include an 'and/or assigns' clause plus a long inspection period they can cancel within.
Sometimes to get your signature. Once you're under contract, the wholesaler shops for an investor who'll pay more than they promised you. If that investor inspects and asks for a discount, the discount usually rolls down to you as a 'renegotiation' before closing. That's why the contract price should equal the closing price in writing.
ABE is a principal buyer, not a wholesaler. Owner Mike Sup is an InterNACHI Certified Home Inspector; he inspects the house upfront, so the contract price is the closing price. No assignment, no daisy-chain, no last-minute renegotiation.
Written by
Mike SupInterNACHI Certified Professional Inspector · #21032009 · speaks English & Spanish
Ready When You Are
Whether you're ready to sell today or just exploring your options, we're here to help. Get a free, no-obligation cash offer and decide on your own timeline.
What you get with ABE Homes:
Mike was straightforward from the start. No pressure, just a fair offer. We closed on our timeline and it was exactly what we needed.
Sarah T., Bethlehem
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