ARV calculator and maximum offer (MAO) for wholesalers

How to use the calculator

1. Estimate ARV. On the “ARV from comps” tab, enter the subject’s square footage and three to six recent sales of similar, renovated homes nearby. Use the result as your ARV.
2. Enter repairs. Use a walkthrough estimate or a contractor’s bid, not a guess per square foot.
3. Set the buyer’s target. 70% of ARV is the common rule of thumb for fix-and-flip buyers. Change it to what your buyers actually pay.
4. Add your fee and any closing or holding costs you want to leave room for. The calculator shows your MAO, the buyer’s maximum price, and the same deal at 65%, 70% and 75%.

The MAO formula (with the 70% rule)

MAO, your maximum allowable offer, is the most you can contract a property for and still sell it to a buyer who makes their margin:

MAO = ARV × buyer’s percentage − repairs − your assignment fee

With the 70% rule the buyer’s percentage is 70%. On a $200,000 ARV with $30,000 of repairs and a $10,000 fee: $200,000 × 0.70 = $140,000, minus $30,000 is $110,000 (the most your buyer pays), minus your $10,000 fee is a $100,000 MAO. Change the percentage to what your buyers actually pay.

Getting the ARV input from comps

ARV comes from sold comparables, not from asking prices or automated estimates. Pick sales that a buyer’s appraiser or agent would also use: homes that are similar in size, bedrooms and baths, style and age, in renovated condition, close by, and sold recently. Work out each sale’s price per square foot, average them, and multiply by the subject’s square footage. Then adjust for what the averages miss, such as a garage, an extra bathroom, a busy road or a larger lot.

The fewer and less similar your comps, the wider the real range. When the comps disagree, use the lower end: a buyer will. For the full method, see how to calculate ARV with comps.

The 70% rule, explained

The 70% rule is a rule of thumb, not a law: a fix-and-flip buyer pays at most 70% of ARV minus repairs, which leaves about 30% of the resale price for their profit, financing, holding and selling costs. As a wholesaler, your assignment fee comes out of that same number, so your maximum offer to the seller is the buyer’s maximum price minus your fee.

When 70% is the wrong number

• Higher-priced homes: a fixed percentage leaves a buyer far more dollars of margin than they need, so buyers often pay a higher percentage.
• Light cosmetic rehabs: less risk and a shorter hold can justify a higher number.
• Landlord buyers: they price on rent and cash flow, not resale, so ARV × % may not be how they decide.
• Heavy rehabs or slow markets: more risk and longer holds push the number down.

Ask your buyers what they pay for each kind of deal, and set the percentage to match.

What a wholesale deal analyzer should check beyond MAO

MAO answers “what can I offer?”. Before you sign, also check:

• Your buyer’s full cost stack. Holding, financing and selling costs come out of the same margin the 70% rule assumes. Run the deal through the fix and flip calculator to see your buyer’s profit.
• The comps behind the ARV. How many, how recent, how similar, and whether the lowest one would still work.
• The exit if it doesn’t assign. Could you double close, or would you walk away and lose your earnest money?
• Title and occupancy. Liens, probate, tenants and code violations change both the price and the timeline.

Estimating repairs

Repairs move MAO dollar for dollar, so they deserve as much care as ARV. Walk the property, list the work room by room, and price it with local contractor numbers. Leave a contingency for what you cannot see: roof decking, plumbing in the walls, foundation and electrical surprises.

Setting your assignment fee

Your fee is the difference between your contract price and what your buyer pays. Experienced buyers run the same math as this calculator, so a fee that pushes their price above their target simply means the deal does not sell. Price the contract so the buyer’s number still works with your fee included. Our assignment contract guide covers who pays the fee and how it shows up at closing.

Track the numbers on every deal

In Find, every deal carries its ARV, rehab estimate, MAO, assignment fee and earnest money, and the spread is calculated for you, so acquisitions and dispositions work from the same numbers. You enter the MAO yourself; this calculator is the quick way to get it. When the deal is ready, publish a dispo page with the numbers your buyers need.