In real estate investing particularly wholesaling the Contract to Close Ratio is one of the most important performance metrics. It measures how many properties that go under contract ultimately make it to the closing table, reflecting both execution and deal quality.
What Is the Contract to Close Ratio?
The Contract to Close Ratio represents the percentage of properties that successfully close after being put under contract.
Industry average: ~85% Most wholesalers operate between 80% and 90%, depending on market conditions and their experience level.
Step-by-Step Breakdown
Here’s how the process unfolds and where the ratio fits in:
1. Securing the Contract
The wholesaler reaches an agreement with the seller and puts the property under contract, usually below market value to create room for a profitable assignment.
2. Finding an End Buyer
Next, the wholesaler markets the deal to cash buyers or investors who are willing to buy the contract or complete the purchase.
3. Closing the Deal
If the end buyer agrees to terms and the transaction is finalized, the property is closed, and the wholesaler earns a fee or assignment profit.
A contract that does not close may be due to inspection issues, title problems, unrealistic pricing, or a lack of buyer interest.
Why This Metric Matters
Efficiency Indicator: Shows how effective your team is at closing the deals you initiate
Revenue Forecasting: Helps project actual income from current pipeline contracts
Process Optimization: Low ratios may signal issues in buyer vetting, pricing, or deal quality
What’s a Healthy Ratio?
| Contract to Close Ratio | Performance Insight |
|---|---|
| 90%+ | Excellent — highly efficient closings |
| 80–89% | Healthy — consistent industry average |
| Below 80% | Needs review — may indicate weak deals, due diligence gaps, or buyer list issues |
Final Thoughts
Maintaining a strong Contract to Close Ratio is essential for:
Scaling your wholesaling business
Building trust with sellers and buyers
Reducing wasted marketing and negotiation effort
Increasing overall profitability
Need Help Tracking or Improving Your Ratio?
At 8020REI, we can help you monitor your key metrics, review deal data, and improve pipeline performance. Reach out to your Customer Success Manager, or email us at support@8020rei.com.
