What is Assignment Fee?
An assignment fee is the amount a wholesaler is paid for assigning the rights of a real estate purchase contract to an end buyer. Typical fees in 2026 range from $5,000 to $25,000 on single-family deals, depending on the spread and the market.
When a wholesaler gets a property under contract, they don't intend to close on it themselves. They market the contract to their buyers list and, when a buyer agrees, "assign" the contract — the buyer steps into the wholesaler's shoes and closes with the seller at the agreed price. The wholesaler is paid the assignment fee at closing.
Assignment fees are negotiable and market-specific. A $5,000 fee is small; a $25,000 fee is common; fees above $50,000 typically only happen on commercial deals or unusually large spreads. The wholesaler should never push fees so high that the end buyer's margin disappears — repeat buyers are the entire business.
Assignment is legal in most US states but the disclosure rules vary. A handful of states (Illinois, Oklahoma, Pennsylvania, others) have passed wholesaler-disclosure laws requiring assignors to disclose their fee or register as licensed brokers. Always check state-specific rules.
Wholesaler signs contract to buy for $120,000. Markets to buyers list at $135,000. End buyer agrees. Wholesaler is paid $15,000 assignment fee at closing. End buyer closes with seller at $120,000.
Concepts that connect.
Wholesaling is the real-estate strategy of putting a distressed property under purchase contract and assigning that contract to a cash buyer for a fee. The wholesaler never owns the property — they're paid for connecting motivated sellers to investor buyers.
Maximum Allowable Offer (MAO) is the highest price a wholesaler or flipper can pay for a property and still hit their required profit margin. Derived from the 70% rule: MAO = (ARV × 0.70) − repair costs − assignment fee.
A double close (also called a simultaneous close) is a wholesaling exit where the wholesaler actually buys the property from the seller and immediately resells to the end buyer in two back-to-back transactions. Used when an assignment isn't allowed or when the wholesaler wants to hide their margin.
A buyers list is a wholesaler's curated database of cash buyers (investors, flippers, landlords) who can close on wholesale contracts quickly. Building and maintaining a strong buyers list is the single highest-leverage activity for any wholesaler — without buyers, contracts are worthless.
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