What Is Contract Assignment?

Assignment is the core mechanic of wholesaling. A wholesaler signs a purchase agreement with you, then sells their right to buy your house to another investor, pocketing the difference as an assignment fee.

This isn't inherently bad, but it carries risk for you: the person you negotiated with isn't necessarily the person who closes, and if they can't find an end buyer, the deal can collapse. You may also not know who's actually buying your home.

A direct buyer — one who closes in their own name with their own funds — removes this uncertainty. If working with a wholesaler, ask directly whether they intend to assign the contract, and get clarity on what happens if they can't find an end buyer.