The Assignment Fee Reality Check
Why lower fees often create higher annual income — and how wholesalers build repeat buyers without racing to the bottom.
The Assignment Fee Reality Check
Assignment fees are emotional.
They’re easy to treat like a scoreboard.
But wholesalers who last treat assignment fees like a business variable—not a trophy.
Why “bigger fee” often equals smaller business
A wholesaler closing 2 deals/month at $12k makes less than one closing 6 deals/month at $7k:
- 2 × 12,000 = $24,000/mo
- 6 × 7,000 = $42,000/mo
The higher-volume operator wins, even with lower per-deal fees.
And they win with:
- more predictable income
- more referrals
- more leverage
- better buyer relationships
What buyers actually pay for
Buyers don’t pay higher fees because your email list is big.
They pay when the deal has:
- accurate ARV
- honest rehab assumptions
- clean access + documentation
- clear title path
- enough spread to survive stress tests
If the deal is fragile, pricing needs to reflect that.
The “deal quality” fee ladder
A simple approach:
- A+ deals (clear ARV, light rehab, high demand): stronger fee possible
- B deals (normal rehab, normal demand): fair fee
- C deals (foundation, unknowns, tenant complexity): smaller fee or deeper discount
This isn’t “discounting.”
It’s pricing uncertainty.
How retrades destroy your economics
Retrades cost money, even if the deal closes:
- time
- credibility
- buyer trust
- marketing opportunity cost
If your deals routinely retrade, your pricing system is broken.
Bottom line
The goal is not the biggest fee.
The goal is:
- repeat buyers
- consistent closings
- predictable monthly revenue
Buyers remember fair pricing.
And they come back.