All guides · Fee calculator · Step-by-step guide
What the fee means
Suppose a wholesaler has a purchase contract with a seller and the agreement allows that contractual interest to be assigned. The wholesaler finds an end buyer who accepts the property and terms at a higher price. The difference, subject to the actual assignment documents and closing costs, is the proposed assignment fee. The wholesaler is transferring a contractual position, not selling a property they already own. The details matter, and a local attorney should review them.
The word “assignment” is sometimes used loosely. An actual transaction needs documents that identify the parties, the original agreement, the interest being assigned, the agreed fee and how the closing will work. This guide is not a template. Do not copy a form from a search result and assume it applies to your state or deal. Ask the closing professional what they need and whether the underlying contract permits the plan.
A worked example
Imagine a seller contract price of $145,000 and an end buyer price of $155,000. The simple difference is $10,000. That is the proposed assignment fee before any transaction-specific adjustments or costs. If the end buyer negotiates the price to $151,000, the simple difference becomes $6,000. If repair findings change the deal, the parties may need to revisit the structure. The assignment fee calculator makes the subtraction clear, but it cannot decide which documents or fees apply.
The seller should know who is buying and what the transaction terms mean. The end buyer should know what they are receiving and the deadlines they must meet. If your presentation of the deal depends on hiding your role, pause and get professional advice. A sustainable transaction is one the closing team can document plainly. The wholesale process guide covers the earlier work: seller conversation, property checks, offer math and buyer diligence.
How it may appear on a closing statement
A closing statement records money due to and from the parties. In an assignment closing, the fee may be shown as a separate assignment fee line or be reflected through the assignment documents and disbursements, depending on the title company, jurisdiction and transaction. There is no universal line label to copy. Ask the title company or attorney handling the closing to show you where the fee appears, who pays it and whether the seller and buyer statements reflect the agreed terms.
Review the final statement before closing. Compare the contract price, assignment fee, deposits, credits, closing costs and net proceeds with the signed documents. Do not infer that a spreadsheet is the final disbursement. A title issue, concession or changed buyer price can alter the figures. If something does not match, ask the closing professional to explain and correct it before anyone signs.
Assignment versus a double close
An assignment transfers a contractual interest under the terms allowed by the agreement and applicable rules. A double close involves the wholesaler buying from the seller in one closing and selling to the end buyer in another. That means two transactions, with funding, timing and costs to coordinate. Neither is automatically right for a deal, and neither is a workaround for required disclosures. A local real estate attorney and title company should help choose and document the appropriate route.
Build the fee into your offer math early. The MAO formula guide shows how a proposed assignment fee changes the maximum seller contract price, while the MAO calculator lets you change repairs and costs. If a buyer says the fee leaves them no workable margin, review the deal facts rather than treating the fee as guaranteed.
From the desk
On seller calls since 2021, I have learned that the first number is rarely enough context. I want a buyer to see the repair assumptions and a seller to understand the proposed process. Our published call statistics describe desk activity; they do not tell you what fee any deal will support. The fee belongs in the full transaction math with title, repairs and buyer capacity checked.
If the seller asks “What do you do with it?,” explain the role you expect to play. If they ask “Are you a realtor?,” answer directly. If they want documents in writing, see the written offer response and involve the attorney for actual legal terms. The seller call script helps you discover the property and goal before a fee calculation becomes relevant.
Confirm this deal's assignment language, disclosures, tax treatment and closing statement with a title company or local real estate attorney. This page explains the meaning and arithmetic; it is not legal or tax advice.