What is Assignment of Contract in Real Estate?

Assignment is the mechanism that makes real estate wholesaling work. Without it, you would have to actually buy every property you put under contract. With it, you can earn a profit by finding the deal and connecting buyer and seller — no closing required on your part.

Northern Virginia Market

How Assignment Works

• Step 1: You sign a purchase agreement with the seller at a below-market price. The agreement includes an assignment clause.
• Step 2: You find an end buyer who wants to close on the property at a higher price.
• Step 3: You and your end buyer sign an assignment agreement. They pay your fee and assume your rights in the original purchase contract.
• Step 4: The end buyer closes with the seller. Your fee is typically paid at closing through the title company.

What the Assignment Agreement Contains

• Reference to the original purchase agreement (address, seller, purchase price, closing date)
• Assignee name and entity
• Assignment fee amount and payment terms
• Confirmation that assignee has reviewed the original contract and accepts all terms
• Signatures of assignor (you) and assignee (end buyer)

Assignment Fee Ranges

• Light deals (low equity, easy find): $3,000–$8,000
• Typical wholesale assignment: $8,000–$20,000
• Strong deals with significant spread: $20,000–$50,000+
• Record assignments in hot markets: $75,000–$100,000+ on major equity deals

Your fee is the spread between your contract price and what the end buyer agreed to pay. There is no cap — you earn whatever the market bears given the deal quality and your buyer's perceived value.

When to Double Close Instead of Assign

Assignment is transparent — the seller sees your fee on the HUD. A double close uses transactional funding to buy and sell the same day, keeping your profit private. Use a double close when your fee is very large and seller awareness might create friction, or in states with regulations around large assignment fees.

Dan White is a licensed Virginia real estate agent at Pearson Smith Realty and founder of FreeDealCalc.com. He buys wholesale assignments in Northern Virginia regularly.