I would collect a non-refundable option deposit from them up front, create a cash flow every month and if the tenant/buyer exercised their option down the road got paid again. 

Thank you @Scott Ryne it's amazing that you explaining what I want say in a lot better way. the projects it might be small or big and either he is under paid or over paid very true. in addition that it's my benefit to reduce cost and the bigger the project the better his fees, I feel it's not fair.

I am new to REI and want to get into wholesaling initially to build some additional investing capital.

The addition income without addition expenses adds value to the property. 

The agent was worried that it might raise a flag with the assessor with maybe an un-permitted addition or something.

(Like all liquidation options, they do have the ability to throw up a gate if too many people exercise it at once ).

@Rita Koroll,As for HOAs, you need to consider them as an additional operating expense just like property tax.

I second all of the advice from the other posts. in addition to all of that, I would say connect with me and add me to your buyers list! 

Subject-To is something I will offer in addition to short sale as a last resort. 

Additionally, if the deal falls through am I to be left with the legal fees?