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The Cowboy Sales Process
The Cowboy Sales Process

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How to Calculate Your Offers

brief

This module will show you how to calculate offers that are more appealing to sellers while securing your profit margin, leading to a higher contract acceptance rate.


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1. The Scenario: A Tale of Two Offers

Using a standard formula to calculate the offer on a property and realizing the number was far lower than the one that actually got the deal done is the dilemma here.
Asset: House in Conyers, Georgia
Anticipated Sale Price (ARV/List Price): $300,000
The Winning Offer Price: $270,000
The Instructor's Projected Profit: ~$22,500
By using the standard formula, you would have offered significantly less, likely losing the deal. Let's break down why the formula was holding you back and how Niko’s winning formula works.

2. Deconstructing "Old School" Formulas (And Why They Fail)

The standard formula is a classic example of a "buffer-based" formula. It's designed to be safe, but in a competitive market, "safe" often means "losing."
Standard Formula Example
The standar formula was:
Column 2
Let's apply it to the deal:
Column 2
Analysis:
Column 2
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3. The Scalpel Strategy: Aggressive Offers Through Precision

The winning strategy doesn't rely on generic percentages. It uses a precise calculation based on the real costs of the transaction. This allows you to push your offer price to the maximum possible limit, making it far more attractive to the seller.
Niko's Formula Example
Start with the Gross Spread:
Column 2
Calculate ACTUAL Costs (The Scalpel):
Column 2
Determine Your Net Profit:
Column 2
Result:
Column 2
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4. Side-by-Side Comparison:


The $30,000 Difference
Methodology
Generic % buffer + fixed profit
Actual cost calculation
Precision
Calculated Costs
$30,000 (10% of Sale Price)
$7,500 (2.5% Buyer Agent Fee)
$22,500 Lower Costs
Final Offer to Seller
$240,000
$270,000
$30,000 Higher Offer
Likelihood of Acceptance
Low
High
Wins the Deal
Net Profit
$0 (because you lost the deal)
~$22,500
Actual Revenue
There are no rows in this table
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5. Key Takeaways & Action Plan

Stop Using Blended Percentages: Formulas that use an 80-90% multiplier of the sale price is outdated and overly conservative. They build in padding for costs you may not actually incur.
Identify Your True Listing Costs: The single biggest variable is the real estate commission. Your primary mission is to find a platform, brokerage, or system that allows you to list properties without paying a 3% listing-side commission. This is your "unfair advantage."
Offer More, Win More: By reducing your own costs, you can pass that value on to the seller in the form of a higher offer. This makes you hyper-competitive and enables you to get more deals under contract.
The Power of the Platform: As the instructor notes, the value of a subscription or partnership model is that it allows you to eliminate or drastically reduce listing fees. This directly enables the Scalpel Strategy. You can make aggressive offers repeatedly without paying massive fees on the back end, fundamentally changing your business model.
Struggling to find consistent deals? Prexium connects you with the opportunities you’ve been missing. Get started now 👉
The Cowboy Marketer
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