icon picker
TOP Buyers offer Calculator

rocket

This module provides a line-by-line breakdown of the Triple Offer Property Buyers Calculator. You will learn the strategic framework behind crafting a profitable offer, not just the mechanics of the numbers. We will dissect each input in the calculator, revealing how to accurately forecast costs, protect your profit, and structure deals that work in the real world. This isn't just about data entry; it's about building an offer that wins.

Part 1: The Core Philosophy - Work Up to Your MAO

Before we touch a single cell in the spreadsheet, understand the core strategy. Your Maximum Allowable Offer (MAO) is your final number, your walk-away price.
Never Lead With Your Best: You don't open negotiations with your MAO. It makes the deal seem too easy and leaves no room for negotiation.

Make Them Work for It: The goal is to start with a strong initial offer and make the seller negotiate up to your MAO. This psychological positioning gives you control and makes the seller feel like they've won when they reach your pre-determined final price.

Part 2: The Calculator - A Line-by-Line Takedown

This section breaks down every component of the offer calculator. We'll use the example numbers shown below
Initial Inputs & Profit Forecasting
Price We Can Sell It For
$500,000.00
This is your After Repair Value (ARV). It's the price you can realistically sell the property for on the open market after all work is done. Your analysis here must be ruthless. Base it on sold comps and active inventory, because active listings are your direct competition.
Desired Profit
$30,000.00
This is your target net profit. The speaker suggests a baseline of $30,000 but provides a more nuanced guideline: Aim for 8% to 15% of the ARV. Always factor in more profit than you think you need. Surprises happen, and your profit margin is your buffer.
Multiplier Off Market Value
1.0 (or 100%)
This multiplier adjusts the "Price We Can Sell It For." The speaker is aggressive and confident in his ARV, so he leaves it at 1.0 (or 100%). If you were more conservative, you could set this to 0.95 (or 95%), which would lower your offer to build in an extra safety margin.
There are no rows in this table
Transactional Costs & Fees (The Non-Negotiables)
These are the costs of doing business. Underestimate them at your peril.
Transactional Costs & Fees
Realtor Fee 3% + .0012 MLS Fee
$15,250.00
This is the standard commission structure. It assumes a 3% buyer's agent commission plus a nominal MLS fee. We'll discuss how to crush this number later.
Flat Fee Listing Fee
$493.00
The cost to get your property listed on the MLS through a flat-fee service if you aren't a licensed agent. Note: The speaker points out that if you are a subscriber to their brokerage service, this cost is eliminated.
Attorney Fee
$500.00
Standard legal fees for closing. This varies by region but is a mandatory cost.
Title Insurance
$200.00
Protects you and the lender from claims against the title. An absolute necessity.
Efile / Recording Fee
$35.00
The cost charged by the county to officially record the deed transfer.
Pictures / Stamps
$200.00
The Equilibrium: Identify the three pillars of a successful sale: Price, Location, and Pictures. High-quality photos are not optional. They are a mission-critical investment. Budget for a professional.
Other Expenses, Insert
$200.00
A miscellaneous budget. This is your "expect the unexpected" fund for small, unforeseen costs.
Total Costs (Auto-Sum)
$16,878.00
The sum of all the fees listed above.
There are no rows in this table
The Final Numbers
First Offer MAX
$451,276.00
This is your calculated Maximum Allowable Offer (MAO). The formula is: (Price We Can Sell It For) - (Desired Profit) - (Total Costs)
First Offer MIN
$376,276.00
This is your suggested starting offer. It's a strategically lower number designed to open negotiations and give you room to move up toward your MAO.
There are no rows in this table

Part 3: Advanced Strategy - Hacking the Commission

The single largest fee is agent commission. The speaker reveals how members of his brokerage, Top Brokerage, can drastically reduce this cost while remaining attractive to buyer's agents.
The Problem: A standard 6% commission is split 3% to the listing agent and 3% to the buyer's agent. As an investor, paying 3% to list is a massive profit killer.
The Hack: Instead of paying a listing agent 3%, you can use a brokerage model with a subscription fee and a much lower percentage per deal.

The Math:
Offer the buyer's agent a competitive commission, for example, 2.5%. This is still very attractive and ensures they will bring buyers.
Pay your brokerage their fee, for example, 0.5%.
Your Total Commission Paid = 3.0%.
The Result: You've effectively eliminated the entire listing commission, replacing it with a small brokerage fee. On a $500,000 sale, this is a savings of nearly $15,000. This strategy alone can be the difference between a deal and no deal.

Part 4: Calculating Repairs - The Final Variable

The calculator shown assumes the property condition is comparable to the comps (an "apples-to-apples" scenario). If the subject property needs repairs to reach the ARV, you must account for that cost.
Method: Use a cost-per-square-foot ($/SF) model.
Process:
Determine the level of renovation needed (e.g., cosmetic, full rehab).
Assign a realistic $/SF cost for that level of work in your market.
Calculate the total repair cost: (Square Footage of Property) x (Cost per Square Foot)
Implementation: This total repair cost is then subtracted from your MAO, just like your desired profit and transaction fees. It directly reduces what you can offer for the property. A detailed repair budget is critical for accuracy.

rocket

Please make sure to create your own copy of the calculator


Struggling to find consistent deals? Prexium connects you with the opportunities you’ve been missing. Get started now 👉

Want to print your doc?
This is not the way.
Try clicking the ⋯ next to your doc name or using a keyboard shortcut (
CtrlP
) instead.