Assignment Fees in 2025: What Wholesalers Are Actually Earning (And How to Increase Yours)

If you're wholesaling real estate, your assignment fee is everything. It's your paycheck. Your profit. The entire reason you're putting in the work to find deals.

But how much should you be charging? What are other wholesalers actually earning? And how can you increase your fees without losing deals?

Let's break down the real numbers.

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What Wholesalers Are Actually Earning

Assignment fees vary widely, but industry data gives us a clear picture:

• Most wholesalers average around $10,000 per deal (BiggerPockets, Wholesaling Inc., 2025)
• Typical assignment fees range from $5,000 to $20,000, depending on property value and market demand (REI Podio CRMs, January 2025)
• Urban markets with high competition often see fees exceeding $30,000, while rural markets average $5,000-$10,000 (REI Podio CRMs, January 2025)
• Assignment fees generally range from $2,000 to $40,000, depending on the market and deal quality (Rethority Survey, 2023)
• The highest recorded assignment fee was over $400,000 for a tear-down property suited for an apartment complex (Rethority Survey, 2023)

Translation: There's a wide range, but $10K is the benchmark. If you're consistently below $5K, you're leaving money on the table. If you're above $15K regularly, you're doing something right.

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What Determines Your Assignment Fee?

Your fee isn't random. Several factors determine how much you can charge:

1. Market Value and Deal Quality

The more undervalued a property is, the higher your fee can be. Deep discounts = bigger spreads = higher fees.

2. Your Buyer's Profit Margin

A good rule of thumb: charge up to 50% of the end buyer's projected profit. If a flipper will make $30K, you can potentially charge up to $15K (PropStream, 2025).

3. Market Competition

In oversaturated wholesale markets, you may need to lower fees to remain competitive. In tight markets with fewer wholesalers, you have more pricing power.

4. Geographic Location

• Higher-priced, faster-moving markets = higher fees (and more competition)
• Slower, lower-priced markets = lower fees but potentially less competition

5. Your Negotiation Skills

Strong negotiation with both the seller and buyer leads to better margins. This is where experience pays off.

6. Buyer's Willingness to Pay

A buyer's readiness to close fast can impact their acceptance of higher fees. Cash buyers who need inventory will pay more.

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The Wholesale Formulas You Need to Know

The 70% Rule (Most Common)

Investors should pay no more than 70% of ARV minus repair costs. As a wholesaler, you need to factor in your assignment fee:

Maximum Allowable Offer (MAO) = (ARV × 70%) - Repair Costs - Your Assignment Fee

Example:

• ARV: $300,000
• Repair Costs: $50,000
• Your Assignment Fee: $10,000

MAO = ($300,000 × 0.70) - $50,000 - $10,000 = $150,000

You need to get the property under contract for $150,000 or less to make this deal work.

The 75% Rule (More Conservative)

Some investors prefer 75% of ARV minus repairs. This gives them more cushion:

MAO = (ARV × 75%) - Repair Costs - Your Assignment Fee

Using the same example: MAO = ($300,000 × 0.75) - $50,000 - $10,000 = $165,000

This allows you to offer more to the seller while still leaving room for your fee.

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How to Increase Your Assignment Fees

1. Focus on Higher-Quality Deals

Instead of chasing every lead, focus on properties with significant upside potential. The bigger the deal, the bigger your fee.

Stop doing $3K-$5K deals. Start doing $15K+ deals.

2. Build a Premium Cash Buyer List

The better your buyer network, the more you can charge. High-quality cash buyers rarely care about your fee as long as they're getting a good deal.

3. Target Properties with Large ARV Spreads

Look for properties where the gap between purchase price and ARV is large enough to support a healthy fee without squeezing the investor.

4. Use Double Closings for Large Fees

If your assignment fee is particularly large (say, $30K+), consider a double closing to keep your profit private. This prevents buyers from questioning your fee.

5. Market Yourself as a Deal-Finder, Not Just a Middleman

Position yourself as someone who saves investors time and money by finding deals they couldn't find themselves. This justifies higher fees.

6. Work Smarter, Not Harder

Instead of doing more $5K deals, do fewer $15K-$20K deals. Focus on quality over volume for higher per-deal profits.

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Common Mistakes That Kill Assignment Fees

1. Thin Margins

Too many new wholesalers put deals under contract at close to retail price. There's no room for a fee, and buyers won't bite. Always leave enough meat on the bone for the investor.

2. Weak Buyer Networks

If you can't move deals quickly, you'll be forced to lower fees to attract buyers. Build a deep buyer list before you need it.

3. Fear of Charging What You're Worth

New wholesalers often undercharge out of fear of losing the deal. Confidence in your value leads to higher fees.

4. Ignoring Market Conditions

If your local market is experiencing price declines, you'll need to adjust fees downward. Stay aware of local trends.

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Real-World Assignment Fee Examples

Example 1: Starter Home in Suburban Texas

• Contract Price with Seller: $180,000
• Assignment to Buyer: $190,000
• Assignment Fee: $10,000

Example 2: Fixer-Upper in Urban Market

• Contract Price with Seller: $100,000
• Assignment to Buyer: $125,000
• Assignment Fee: $25,000

Example 3: High-Value Property

• Contract Price with Seller: $400,000
• Assignment to Buyer: $450,000
• Assignment Fee: $50,000

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The Infrastructure to Support Higher Fees

To consistently earn $10K+ assignment fees, you need:

✅ A strong lead generation system to find quality deals
✅ A vetted cash buyer network ready to close fast
✅ Quick deal analysis tools to evaluate properties instantly
✅ Marketing systems to reach motivated sellers

Building this infrastructure takes time—or you can leverage existing platforms.

PropPipeline provides:

• Access to motivated sellers and off-market inventory
• Connection to verified cash buyers actively looking for deals
• Tools to move deals fast without manual buyer management
• Focus on acquisitions, not operations

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The Bottom Line

$10,000 per deal is the benchmark. If you're consistently below that, focus on better deals, stronger buyers, and more confident pricing.

If you're above $15K regularly, you've figured out the game. Now scale it.

The wholesalers earning $20K, $30K, even $50K+ per deal aren't lucky—they're strategic. They find better deals, negotiate harder, and have the infrastructure to move inventory fast.

Ready to increase your assignment fees?

Join PropPipeline today and connect with the cash buyers and motivated sellers who make high-fee deals possible.

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Sources

• REI Podio CRMs, January 2025
• BiggerPockets & Wholesaling Inc., 2025
• PropStream, 2025
• Rethority Survey, 2023
• Real Estate Skills, 2025
• Call Porter, 2023