What the home would sell for on the open market once it's fully fixed up — based on recent comparable sales in the area, not what it's worth today.
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Your best estimate of what it costs to bring the property up to the condition needed to hit that ARV — roof, kitchen, floors, systems, cosmetic work, etc.
The standard investor formula (the "70% rule") — offering around 70% of ARV, minus repairs, to leave room for closing costs, holding costs, and actual profit. Drag lower for more safety margin, higher for a more competitive offer.
Advanced
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Your fee on the deal — typically $10k–$15k. This comes off the top before you land on the number you actually offer the seller.
What you'll pay when you eventually resell the fixed-up property — agent commissions, title/closing fees, and transfer taxes. 8–10% of ARV is a typical planning estimate.
How many months you expect to own the property between buying it and reselling it — renovation time plus time on market.
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What it costs per month to own it while you hold it — property taxes, insurance, utilities, and loan payments if you're financing the deal.
Offer to Seller
$132,500
Deal ceiling before your fee: $145,000
ARV × Rule$175,000
Repair Costs−$30,000
Closing Costs−$20,000
Holding Costs−$1,350
Your Fee−$12,500
Deal Ceiling$145,000
Opening Offer
$119,250
Walk-Away Price
$132,500
Offer to Seller — the number you actually present, with your fee already carved out.
Deal Ceiling — the most the deal can support before your fee, for your own reference.
Opening Offer — a starting point on a call, priced 10% under your seller offer so there's room to negotiate up.
Walk-Away Price — the most you should offer the seller and still keep your full fee. If they won't come down to this, it's not a fit.
This tool gives a quick working estimate, not a guaranteed offer. Always verify comps, actual repair
scope, and local closing costs before extending a formal offer.