Our research team analyzed hundreds of wholesale real estate transactions across major U.S. markets to understand the complete structure of a typical wholesale deal in 2025. A wholesale real estate deal encompasses the full transaction from property acquisition to contract assignment, including the contract purchase price, after-repair value (ARV), estimated renovation costs, assignment fees, and buyer profit margins. Understanding these components is essential for wholesalers to structure profitable deals that satisfy both motivated sellers and cash buyers. In the analysis below, we break down average deal metrics across property types, price points, and market conditions to provide realistic benchmarks for evaluating wholesale opportunities.
Average Wholesale Deal Components, 2025
The table below outlines the typical financial components found in standard wholesale real estate transactions across U.S. markets:
| Deal Component | Average Amount | Typical Range | % of ARV |
|---|---|---|---|
| After Repair Value (ARV) | $250,000-$350,000 | $150,000-$500,000+ | 100% |
| Purchase/Contract Price | $160,000-$220,000 | $100,000-$350,000 | 65%-75% |
| Estimated Repair Costs | $25,000-$50,000 | $10,000-$100,000+ | 10%-20% |
| Wholesale Assignment Fee | $8,000-$15,000 | $5,000-$30,000 | 3%-6% |
| End Buyer Purchase Price | $170,000-$235,000 | $110,000-$375,000 | 68%-78% |
| End Buyer Expected Profit | $30,000-$50,000 | $20,000-$75,000 | 12%-20% |
The 70% Rule: Foundation of Wholesale Deal Calculation
The 70% Rule serves as the industry standard formula for determining Maximum Allowable Offer (MAO) on wholesale properties. This calculation ensures adequate profit margins for both wholesalers and end buyers.
The Standard Formula:
MAO = (ARV × 70%) – Repair Costs – Wholesale Fee
| ARV Amount | 70% of ARV | Minus Repairs ($30K) | Minus Fee ($10K) | Maximum Offer |
|---|---|---|---|---|
| $200,000 | $140,000 | $110,000 | $100,000 | $100,000 |
| $250,000 | $175,000 | $145,000 | $135,000 | $135,000 |
| $300,000 | $210,000 | $180,000 | $170,000 | $170,000 |
| $400,000 | $280,000 | $250,000 | $240,000 | $240,000 |
| $500,000 | $350,000 | $320,000 | $310,000 | $310,000 |
Average Wholesale Deal by Property Type
Different property types command varying deal structures and profitability potential.
| Property Type | Average ARV | Average Contract Price | Average Repairs | Average Wholesale Fee |
|---|---|---|---|---|
| Single-Family (3BR/2BA) | $275,000 | $180,000 | $35,000 | $10,000-$15,000 |
| Single-Family (4BR/3BA) | $350,000 | $230,000 | $45,000 | $12,000-$18,000 |
| Multi-Family (Duplex) | $400,000 | $260,000 | $50,000 | $15,000-$22,000 |
| Multi-Family (Triplex/Fourplex) | $550,000 | $360,000 | $70,000 | $20,000-$30,000 |
| Condo/Townhome | $200,000 | $135,000 | $20,000 | $7,000-$12,000 |
Average Deal Timeline: Contract to Cash
Understanding the typical timeline for wholesale deals helps manage expectations and cash flow planning.
| Phase | Average Duration | Typical Range | Key Activities |
|---|---|---|---|
| Property Identification | 1-4 weeks | Ongoing | Marketing, lead generation, property research |
| Initial Contact to Contract | 3-10 days | 1 day-3 weeks | Negotiation, property inspection, contract signing |
| Contract to Buyer Found | 5-14 days | 3-30 days | Marketing to buyers list, property showings |
| Due Diligence Period | 7-14 days | 3-21 days | Buyer inspection, title review |
| Assignment & Closing | 14-30 days | 7-45 days | Title work, final closing |
| Total Deal Duration | 30-60 days | 2 weeks-90 days | Contract to cash |
Average Repair Cost Estimates by Rehab Level
Accurate repair estimates are critical for wholesale deal analysis and determining an appropriate Maximum Allowable Offer.
| Rehab Level | Cost Per Square Foot | 1,500 SF Home | 2,000 SF Home |
|---|---|---|---|
| Light Cosmetic | $15-$25/sf | $22,500-$37,500 | $30,000-$50,000 |
| Moderate Rehab | $30-$45/sf | $45,000-$67,500 | $60,000-$90,000 |
| Heavy Rehab | $50-$70/sf | $75,000-$105,000 | $100,000-$140,000 |
| Full Gut Renovation | $75-$100+/sf | $112,500-$150,000+ | $150,000-$200,000+ |
Earnest Money Deposit Requirements
Earnest money deposits (EMD) secure the purchase contract and demonstrate the wholesaler’s commitment to the transaction.
| Deal Size/ARV | Typical EMD Amount | EMD as % of Contract | Refundable? |
|---|---|---|---|
| Under $100,000 | $500-$1,000 | 0.5%-1% | Yes (with contingencies) |
| $100,000-$200,000 | $1,000-$2,500 | 0.75%-1.5% | Yes (with contingencies) |
| $200,000-$400,000 | $2,500-$5,000 | 1%-2% | Yes (with contingencies) |
| $400,000-$600,000 | $5,000-$10,000 | 1.5%-2.5% | Yes (with contingencies) |
| Over $600,000 | $10,000-$25,000+ | 2%-3% | Negotiable |
End Buyer Profit Expectations
Understanding what end buyers expect helps wholesalers structure attractive deals.
| Buyer Type | Minimum Expected Profit | Target Profit Range | Max Price They’ll Pay |
|---|---|---|---|
| Fix-and-Flip Investor | $30,000-$50,000 | $40,000-$75,000 | 70%-75% of ARV (minus repairs) |
| Buy-and-Hold/Rental Investor | $20,000-$40,000 | $30,000-$60,000 | 75%-80% of ARV (minus repairs) |
| Owner-Occupant (FHA 203k) | $15,000-$30,000 | $20,000-$40,000 | 75%-85% of ARV (minus repairs) |
| Institutional Buyer | $40,000-$80,000 | $50,000-$100,000+ | 65%-70% of ARV (minus repairs) |
Average Contract Terms in Wholesale Deals
| Contract Element | Standard Term | Range | Notes |
|---|---|---|---|
| Contract Duration | 30 days | 14-45 days | Time to find end buyer |
| Inspection Period | 7-10 days | 3-14 days | Due diligence window |
| Extension Options | 1 extension (15 days) | 0-2 extensions | Usually requires additional EMD |
| Assignment Fee Due | At closing | At closing or upon assignment | Varies by agreement |
| Earnest Money | $1,000-$3,000 | $500-$10,000 | Depends on deal size |
Typical Wholesale Deal Example
Sample Transaction Breakdown:
| Component | Amount | Calculation/Notes |
|---|---|---|
| After Repair Value (ARV) | $300,000 | Based on comparable sales |
| Estimated Repair Costs | $40,000 | Moderate rehab required |
| Maximum Allowable Offer (70% Rule) | $170,000 | ($300,000 × 0.70) -$40,000 |
| Wholesaler’s Contract Price | $160,000 | Below MAO for negotiation room |
| Wholesaler’s Assignment Fee | $12,000 | Competitive market rate |
| End Buyer Purchase Price | $172,000 | Contract price + assignment fee |
| End Buyer’s All-In Cost | $212,000 | Purchase + repairs |
| End Buyer’s Expected Profit | $48,000 | ARV – all-in cost – closing/holding |
| Wholesaler’s ROI | 1,200% | $12,000 profit on $1,000 EMD |
Critical Success Factors for Wholesale Deals
Deal Analysis Requirements
- Accurate ARV Assessment: Within 5% of actual market value.
- Conservative Repair Estimates: Add 10%-15% buffer for unexpected costs.
- Minimum Equity Spread: At least 30% between contract price and ARV.
- Confirmed Buyer Demand: Property type and location align with buyer preferences.
- Clear Title: No major liens or title complications.
Optimal Deal Characteristics
- Purchase Price: Below 70% of ARV after repairs.
- Property Condition: Distressed but not condemned.
- Location: Desirable neighborhood with strong buyer demand.
- Floor Plan: Standard layout (3BR/2BA single-family preferred).
- Repair Level: Cosmetic to moderate repairs only.
- Seller Motivation: Clear reason for quick sale.
Deal Sourcing Costs
- Direct Mail: $2,000-$5,000 per contract secured.
- Pay-Per-Click (PPC): $1,500-$4,000 per contract secured.
- Cold Calling: $500-$1,500 per contract secured.
- SEO/Organic: $800o-$2,500 per contract secured.
- Driving for Dollars: $200-$800 per contract secured.
Geographic Variations in Average Deals
| Market Type | Average ARV | Average Contract Price | Average Fee | Competition Level |
|---|---|---|---|---|
| Major Metro (Top 10) | $350,000-$500,000 | $230,000-$350,000 | $12,000-$20,000 | Very High |
| Secondary Markets | $250,000-$350,000 | $165,000-$245,000 | $8,000-$15,000 | High |
| Tertiary/Emerging Markets | $180,00-$280,000 | $120,000-$195,000 | $6,000-$12,000 | Moderate |
| Rural Markets | $120,000-$200,000 | $80,000-$140,000 | $4,000-$8,000 | Low-Moderate |
Key Takeaways
Across U.S. markets in 2025, the average wholesale real estate deal involves properties with ARVs between $250,000 and $350,000, contract prices at 65%-75% of ARV, repair costs of $25,000-$50,000, and assignment fees of $8,000-$15,000. The 70% Rule remains the industry standard for calculating Maximum Allowable Offer, ensuring adequate profit margins for both wholesalers and end buyers. Deal timelines typically span 30-60 days from contract to cash, with wholesalers requiring earnest money deposits of $1,000-$5,000 to secure contracts. For investors, success depends on accurate ARV analysis, conservative repair estimates, strong buyer networks, and consistent deal flow that allows for scaling volume over time while maintaining quality control on acquisitions.
If you would like to request a detailed PDF copy of this report or learn more, you can reach out here.
