Pricing is the single biggest factor in how fast your wholesale deal sells. Price it right and buyers compete for it. Price it wrong and your deal sits until the contract expires.
Here’s how to get it right every time.
The 70% Rule: Your Starting Point
Most cash buyers use some version of the 70% rule:
Maximum Allowable Offer = (ARV x 70%) - Repair Costs
This formula gives the buyer enough margin to cover their purchase price, rehab, holding costs, selling costs, and profit. Your contract price plus assignment fee needs to come in below this number.
Example
- ARV: $200,000
- Estimated repairs: $35,000
- MAO (70% rule): $200,000 x 0.70 - $35,000 = $105,000
If you have the property under contract at $90,000 and want a $10,000 assignment fee, the buyer’s all-in cost is $100,000 — well under the MAO. This deal will move fast.
If your contract is at $100,000 and you want $15,000, the buyer’s all-in is $115,000 — over the MAO. This deal will sit.
Why Most Wholesalers Overprice
The number one mistake new wholesalers make is overestimating what their deal is worth. This usually happens because:
- ARV is inflated — using the highest comp instead of the average, or using comps that are too far away or too old
- Repairs are underestimated — not accounting for foundation issues, HVAC, roofing, or permits
- Assignment fee is too high — trying to make $20K on a deal that only supports $8K
- Ego gets involved — “I worked hard to find this deal, I deserve a bigger fee”
Buyers don’t care how hard you worked. They care about the numbers.
The ARV Deep Dive
Getting ARV right is everything. Here’s how experienced wholesalers do it:
- Use the MLS — if you don’t have access, partner with a buyer’s agent who does
- Pull 3-5 comps within 0.5 miles, closed in the last 90 days
- Match condition — compare your property’s AFTER rehab condition to sold comps
- Adjust for differences — add/subtract for square footage, lot size, upgrades, garage
- Be conservative — always round down, not up
A $10,000 miss on ARV directly cuts into your assignment fee and the buyer’s profit. When in doubt, go lower.
Repair Estimates: Don’t Guess
If you’re not walking properties with a contractor, you’re guessing. And guessing costs you deals.
Quick repair benchmarks per square foot:
| Rehab Level | Cost/sqft | What’s Included |
|---|---|---|
| Cosmetic | $5-8 | Paint, flooring, fixtures, landscaping |
| Moderate | $15-25 | Kitchen, bathrooms, some mechanicals |
| Full Gut | $30-50 | Everything down to studs, new systems |
Always add 10-15% contingency. Buyers bake this in too — if your numbers already include it, your deal looks more credible.
Setting Your Assignment Fee
Your fee should reflect the deal, not your personal income goals.
General guidelines:
- $100K-$150K ARV: $5,000-$8,000 assignment fee
- $150K-$250K ARV: $8,000-$15,000 assignment fee
- $250K+ ARV: $12,000-$25,000+ assignment fee
- Multi-family / commercial: Higher fees are standard due to deal complexity
The easiest way to sanity check: after subtracting your fee, does the buyer still hit at least 65-70% of ARV all-in? If yes, your deal is competitive.
Speed Over Margin
This is the mindset shift that separates wholesalers who make $30K/month from those who make $3K:
A fast close at a smaller margin beats a dead deal at a bigger margin — every single time.
If your deal doesn’t get buyer interest within 48-72 hours, the price is wrong. Drop it. A $5,000 assignment fee on a deal that closes in 5 days is worth more than a $15,000 fee on a deal that dies after 30 days.
Your time is better spent finding the next deal than sitting on a stale one.
Need help pricing or moving your deal? Submit it to DispoBridge and we’ll give you honest market feedback within 24 hours.