An assignment fee is compensation for finding, negotiating, and controlling a discounted contract. There is no legal cap in most states — the practical cap is what leaves your buyer enough margin to say yes.
Typical ranges
| Deal ARV | Typical fee |
|---|---|
| Under $100k | $3,000 – $7,000 |
| $100k – $200k | $5,000 – $12,000 |
| $200k – $350k | $10,000 – $20,000 |
| $350k – $600k | $15,000 – $35,000 |
| $600k+ | $25,000 – $75,000+ |
Median first-deal fees land around $5,000–$10,000. Experienced operators in mid-tier markets average $10,000–$15,000.
What actually determines your fee
1. The spread you created. If you contracted at $85,000 on a house worth $190,000 needing $40,000, there's room. If you contracted at 74% of ARV minus repairs, there isn't. Your fee is bounded by your acquisition, not your ambition.
2. Buyer competition. Twenty buyers wanting the deal supports a larger fee. One buyer sets the price.
3. Deal quality. Clean title, motivated seller, accurate numbers, vacant and accessible — that's worth more than a tenant-occupied unknown.
4. Your track record with that buyer. Buyers pay more to wholesalers whose numbers have been right three times.
The rule of thumb
Keep your fee under 5% of ARV on sub-$250k deals and you'll rarely get pushback. Above 8% of ARV, expect a negotiation. Above 10%, expect the buyer to try to go around you to the seller.
Protecting a large fee
When your spread is large:
- Double close. Costs $1,500–$3,500 but keeps the numbers private. On a $45,000 spread, that's obviously worth it.
- Get non-refundable earnest from the assignee. $2,500–$5,000 to title. Buyers who put up real money don't shop your deal.
- Don't disclose the seller's contact info until the assignment is signed and earnest money is in.
- Have the seller's contract properly executed before you market. A verbal agreement is not control.
Defending your fee
When a buyer says "your fee is too high":
"I understand. Let's look at it from your side rather than mine — at $130,000 all in, with $40,000 of work, you're into it at $170,000 against a $216,000 ARV. That's a $46,000 spread before your costs. If that doesn't work for you, tell me what number does and I'll see if the seller can get there. But the fee isn't the part that's flexible — the contract price might be."
You've moved the argument from *your fee* to *their return*, which is the only argument that matters.
When to take less
- It's your first deal with a buyer you want a long relationship with
- The deal is marginal and you'd rather bank $4,000 than terminate
- The buyer's contractor found something real and documented
- You're at the end of the inspection period with no other buyer
Taking $4,000 today and building a repeat buyer is a better business than holding out for $11,000 and terminating. But don't make that the pattern — wholesalers who always cave get renegotiated on every deal, forever.