From the property's fair market value, repair costs, desired discount, and desired profit, estimate a reasonable offer price.
Input Data
Results
At a glance:The offer is the fair market value less the desired discount, less repair cost and desired profit, i.e. the price that still leaves room for both.
Formula
discountAmount = fairMarketValue × desiredDiscountPercent%
offerAmount = fairMarketValue − discountAmount − costOfRepairs − desiredProfit
How to Use
- Enter the fair market value and repair cost.
- Enter the desired discount and profit (0 if owner-occupied).
- Review the suggested offer and discount amount.
FAQ
How do I estimate a property's fair market value?
Refer to recent transactions of similar units in the same district, bank valuations or valuation reports, and weigh factors such as the building's age, aspect, floor and current condition for a combined judgement.
Is this suitable for owner-occupiers too?
Yes. An owner-occupier can set 'desired profit' to 0 and use the discount percentage to express the bargaining room they want; the resulting offer is a suggested price with no investment return reserved.
Is the calculated offer the final transaction price?
No. This is only a reference starting point. The actual price depends on supply and demand, the owner's bottom line, the negotiation and the specific property's condition; compare widely and seek professional advice.
What is the risk of offering too low?
An offer well below the owner's psychological price may be rejected outright, or even kill their willingness to negotiate, costing you the unit you like; in a hot market or for a popular flat, another buyer may snap it up first. The sensible approach is to use this calculator's suggested price as a base, set a 'sincere yet still negotiable' price against comparable sales, rather than pushing the price down blindly.
Does this offer include stamp duty and other transaction costs?
No. This calculator only handles 'the offer itself', deducting repair cost, bargaining room and desired profit from the market value. Transaction costs such as stamp duty (AVD), legal fees, agency commission and mortgage charges are not included. For a full buying budget, add these costs on top of the offer to know the total funds you must prepare.
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.