Find & evaluate deals

How to calculate your maximum offer

Work backward from a defensible exit value to a purchase price that fits your goals.

The outcome

Set a maximum offer, an initial negotiating price, and the assumptions that justify both.

Before you start

  • Review comparable sales and establish a plausible resale value.
  • Estimate renovation costs, transaction expenses, financing, and target profit.

The workflow

Work through it

6 steps
  1. 01

    Choose a supported exit value

    Start with relevant comparable sales and property condition. Keep today’s estimated market value separate from an after-renovation resale assumption.

  2. 02

    Use the 70% Rule / Max Offer calculator as a screen

    Open Calculators and choose 70% Rule / Max Offer. Enter the requested assumptions and inspect the calculation. A screening rule is a starting point, not a complete underwriting model.

    Open Calculators
  3. 03

    Build the full deal calculation

    Use Fix & Flip or the property’s Deal analyzer to include the actual renovation budget, holding period, financing, closing costs, and selling costs. Check which costs the calculator already includes so you do not count them twice.

  4. 04

    Work backward from your required profit

    Subtract all non-purchase expenses and your profit requirement from the expected sale proceeds. If financing costs depend on the purchase price, update those costs and recalculate rather than using one fixed subtraction.

  5. 05

    Test a less favorable outcome

    Lower the resale assumption, increase repairs, and extend the holding period. Decide whether the offer still leaves a reasonable margin for the risks you cannot eliminate.

  6. 06

    Keep the maximum separate from the opening offer

    Record the highest price you can justify and choose your starting offer independently. Use the Negotiations section to keep the discussion tied to the latest assumptions.

Worked example

A simple purchase ceiling

For illustration, $300,000 in sale proceeds minus $45,000 repairs, $30,000 other expenses, and $35,000 target profit leaves $190,000 for purchase. This is only valid if the expense assumptions already reflect that purchase price.