Skip to content
Finance Calc Kit
Real estate

What to Offer on a House Calculator

Calculate how much to offer on a house based on fair market value, renovation costs, and desired discount or 70% rule.

Offer inputs

$
$
%

Recommended maximum offer price

$222,500.00

Offer breakdown

Fair market value$250,000.00
Estimated repairs- $15,000.00
Desired discount- $12,500.00
Total offer price$222,500.00

Step-by-step calculation

Open to see the formula and substituted values.

  1. Discount amount

    Discount=FMV×Discount %100\text{Discount} = \text{FMV} \times \frac{\text{Discount \%}}{100}

    $250,000.00 x 5% = $12,500.00.

  2. Maximum offer price

    Offer=FMV−Repairs−Discount\text{Offer} = \text{FMV} - \text{Repairs} - \text{Discount}

    $250,000.00 - $15,000.00 - $12,500.00 = $222,500.00.

Report tool

How the what to offer on a house calculator works

This calculator estimates a maximum offer price using either a standard discount method or the 70% rule used by real estate investors. Enter fair market value (after-repair value), estimated renovation costs, and your target margin to see a recommended offer.

For investment analysis, combine results with the after repair value calculator, the mortgage calculator for financing costs, and the gross rent multiplier calculator to compare rent yield at your offer price.

Standard discount method

Offer=FMV−Repairs−(FMV×Discount %100)\text{Offer} = \text{FMV} - \text{Repairs} - (\text{FMV} \times \frac{\text{Discount \%}}{100})

Subtract repair costs and your desired discount from fair market value. The discount can represent negotiation room, profit margin, or both depending on your strategy.

70% rule for flippers

Offer=0.70×FMV−Repairs\text{Offer} = 0.70 \times \text{FMV} - \text{Repairs}

The 70% rule sets a ceiling on purchase price so the remaining 30% of ARV can cover rehab, holding costs, closing fees, and profit. It is a screening tool, not a substitute for a full pro forma.

Worked example: $250,000 FMV, $15,000 repairs, 5% discount

  1. Fair market value: $250,000
  2. Discount (5%): $250,000 x 5% = $12,500
  3. Repairs: $15,000
  4. Maximum offer: $250,000 - $15,000 - $12,500 = $222,500

Frequently asked questions

What is fair market value in this calculator?
Fair market value is the estimated after-repair value (ARV) or current market value of the home in good condition. Investors often use comparable sales to estimate ARV before applying the 70% rule.
When should I use the 70% rule?
Use the 70% rule for quick flip screening when you know ARV and rehab costs. It helps avoid overpaying but should be followed by detailed expense and profit projections.
Does this include closing costs?
No. Closing costs, holding costs, and financing are not subtracted in the base formulas. Build those into your discount percentage or run separate calculators for mortgage and closing costs.
Can my offer be higher than the result?
Yes. The calculator shows a maximum offer based on your inputs. Competitive markets, low rehab estimates, or strong appreciation may justify a higher bid if your margins still work.
Are the results stored?
No. All math runs in your browser and inputs sync to the page URL.

Resources and references

The formulas and methods in this calculator were checked against these independent sources.