How to Price Your Assignment Fee: What Wholesalers Actually Charge
Your assignment fee is your compensation for finding the deal, negotiating the contract, and connecting it with the right buyer. Pricing it correctly is a balancing act: too high and buyers walk away, too low and you leave money on the table. This guide covers how to price your fee based on the economics of each specific deal.
Average assignment fees
| Deal Size (ARV) | Typical Fee Range | Fee as % of ARV |
|---|---|---|
| Under $100K | $3K-$7K | 3-7% |
| $100K-$200K | $5K-$12K | 3-6% |
| $200K-$400K | $8K-$20K | 3-5% |
| $400K+ | $15K-$50K+ | 3-5% |
The buyer profit test
The most reliable way to price your fee is to calculate the buyer's profit AFTER your fee. If a flip buyer needs a minimum 15% profit margin (common benchmark), work backward: ARV x 85% = maximum all-in cost. All-in cost minus repairs minus holding costs minus selling costs = maximum purchase price. Maximum purchase price minus your contract price = maximum fee.
Factors that affect fee pricing
- Deal quality: Exceptional deals (deep discounts, prime locations, low repairs) command higher fees. Marginal deals require lower fees to attract buyers.
- Market conditions: In hot markets with few deals available, buyers pay higher fees for access. In slower markets, fees compress.
- Buyer competition: Multiple interested buyers let you charge more. A single interested buyer has more leverage to negotiate your fee down.
- Value you provide: A deal with a complete analysis, professional marketing package, and verified numbers commands a higher fee than an address and a price.
Transparency vs privacy
In an assignment, your fee is visible on the closing statement. In a double close, it is private. If your fee is large relative to the deal ($20K+ on a $150K ARV), consider a double close to avoid fee shock from the seller or buyer.
Related guides
- How to Price a Wholesale Deal
- Negotiating With End Buyers
- Maximum Allowable Offer
- Double Closing Deals
- Wholesale Deal Pricing