How much should my assignment fee be?
Your assignment fee should be the most your buyers will still pay above your contract price, while the deal still leaves them enough profit. There is no single right number for every deal — MaxFee works it out for each deal from real investor purchases in the area, your buyers and the deal's numbers.
How do you calculate an assignment fee in real estate?
You calculate an assignment fee in real estate by subtracting your contract price from the price the buyer pays for the contract. The hard part is knowing the highest price buyers will pay. MaxFee raises the fee one step at a time, counts how many buyers would still pay at each step, and stops at the highest fee that still works.
How do I calculate my assignment fee?
You calculate your assignment fee by finding the highest price your buyers will pay for the contract and subtracting your contract price. MaxFee does the first part from data: what investors near you actually paid for houses like yours, and which of your buyers would still pay at each price.
What is a good assignment fee?
A good assignment fee is the highest one your buyers will still pay while the deal still works for them. That's a reasonable assignment fee — not a greedy one. Charge less and you leave money on the table; charge more and buyers walk away. A good fee sits right at that line.
What is the average or typical assignment fee?
The average or typical assignment fee is about $13,000 nationally, according to a Real Estate Bees survey of more than 1,000 wholesalers, with state averages from about $5,000 to $22,000. A typical wholesale assignment fee says nothing about your deal — MaxFee looks at what buyers pay for houses like yours, where your house is.
What is the maximum assignment fee I can charge?
Your maximum assignment fee is the highest fee that passes two tests: enough buyers would still buy the contract, and the buyer still keeps enough profit. Whichever limit comes first sets the maximum. MaxFee finds it to the nearest $50 and tells you which limit stopped it.
Can an assignment fee be too high?
Yes, an assignment fee can be too high. Past a certain fee, buyers start walking away, or the buyer's profit gets too thin to be worth the work. MaxFee shows both limits and stops the fee just before the first one.
What percentage should an assignment fee be?
There is no fixed assignment fee percentage. The same fee can be a small share of one deal and too much on another, because it depends on the house, the price and the buyers. On MaxFee's sample deal, the fee comes out at 15.9% of ARV — on another deal it could be half that or double.
How much profit should I leave the cash buyer?
You should leave the cash buyer enough profit that real buyers still buy — and MaxFee measures that instead of assuming it: at every fee it checks the buyer's profit after their costs and counts how many actual buyers, from recorded purchases and buy boxes, would still buy. Its Safe, Moderate and Aggressive settings only set how far you push: the buyer keeps at least 18%, 15% or 12%, and only while enough real buyers are still in.
Does the 70% rule determine my assignment fee?
No, the 70% rule does not determine your assignment fee. The 70% rule is a rule of thumb for what a buyer might pay. It doesn't know who your buyers are or what investors in your area actually pay. MaxFee uses real purchases instead.
How do I know what a cash buyer will pay for my wholesale deal?
You know what a cash buyer will pay by looking at what they have actually paid. MaxFee uses public records of cash and LLC purchases of houses like yours in the same area, contracts sold on the Apex Vivus network, and the buy boxes buyers fill in on REILink.
How does MaxFee work out the fee?
MaxFee works out the fee from what buyers actually paid for houses like yours in the same area — in public records and in contracts sold on Apex Vivus — plus buyers' buy boxes. It raises the fee one step at a time, counts how many buyers would still pay, and stops at the highest fee where enough of them are still in. It also checks that the buyer still makes a fair profit.
What if no investor has bought in my area?
If no investor has bought in your area, there are no buyers there for this deal, and MaxFee tells you so instead of guessing a fee. That's a signal about the area, not missing data.
How is this different from OfferAid?
MaxFee is different from OfferAid because they answer different questions. OfferAid helps you build the offer to the seller. MaxFee takes the contract you have and finds the highest assignment fee buyers will pay for it. They work side by side in REILink.
Where do I find MaxFee?
You find MaxFee in DispoAid in REILink. Load a saved deal or type the numbers, pick your buyer folders, and it runs.