M
y parents sold our family home in Gilbert to a wholesale buyer in 2019, who then assigned the contract to another buyer for $425,000. The original sale price was only $290,000, and my sister, a Realtor, believes the fair market value at the time was at least $425,000. This means our parents were cheated out of at least $135,000.

    A wholesale buyer is someone who never intends to close escrow but instead assigns the contract to another buyer for a higher price, a practice known as equity skimming. In some cases, multiple wholesalers would raise the price in increments before closing escrow. However, Arizona law now requires wholesale buyers to disclose their intentions in writing to the seller.

    Unfortunately, this disclosure requirement was enacted in 2022, after our parents' sale had already closed. It's likely too late for us to take action, but we're still exploring our options.