TOOLS / MAX OFFER
Maximum allowable offer
The 70% rule, with the assumptions exposed so you can argue with them.
Shows the whole chain, not just the answer, so you can see which assumption is carrying the deal.
The deal
What it sells for finished. Use closed comps, not listings.
The real number, including the part you always forget.
70 is the classic. Tighter markets push it to 75 or 80, and that is where deals get thin.
Maximum you should offer
$112,500
That leaves about $67,500 between your all-in cost and the finished value.
The whole chain, so you can argue with it
After repair value$225,000
× 70%Your total budget for purchase plus repairs plus margin$157,500
Less repairs− $45,000
Maximum allowable offer$112,500
What is actually sensitive here
Each point on the ruleMoving from 70% to 71% raises your offer by this much$2,250
Each $5,000 of repair budgetComes straight off the offer, one for one$5,000
Implied gross margin30.0% of ARV
The 70% rule is a screening tool, not an analysis. It bundles holding costs, financing, selling costs and profit into one number and hides all four. Use it to decide what is worth a second look, then run the actual profit calculation before you commit.
The two inputs that move this most are the ARV and the repair budget, and those are exactly the two people are most optimistic about. If the deal only works at a 75% rule and a repair budget you have not verified, it does not work.
Run the full profit and return calculation before you sign anything. That one shows you the costs this rule is hiding.
This is a planning estimate, not an offer, an appraisal, a quote, or a commitment. Everything runs in your browser: no figure you type here is sent anywhere or stored.