An offer should reflect comparable sales, the condition of the home and the market. In a seller’s market you may need to offer at or above value; in a buyer’s market, a discount and repair credits are common.
How to use the What to Offer on a House Calculator
- Fair market value
- Cost of renovation
- Desired discount
- Desired profit (0 to keep the home)
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the fair market value, renovation costs, desired discount and desired profit (enter 0 if you will live in the home).
Tips
- Get a written loan estimate and compare the APR, not just the interest rate.
- Include property tax, insurance, HOA fees and maintenance in your monthly budget.
- A larger down payment lowers the payment and can remove mortgage insurance.
- Rates change daily – use a current quote for the most accurate result.
Common mistakes to avoid
- Looking only at the monthly payment instead of the total cost of the loan.
- Forgetting closing costs and fees.
- Assuming home prices always rise.
Inputs explained
| Field | What to enter |
|---|---|
| Fair market value | Amount in your currency |
| Cost of renovation | Amount in your currency |
| Desired discount | In % |
| Desired profit (0 to keep the home) | Amount in your currency |
What each result means
- Offer amount = [Fair market value]×(1 – [Desired discount]÷100) – [Cost of renovation] – [Desired profit (0 to keep the home)]
- Offer as a share of market value = [Offer amount]÷[Fair market value]×100
Example values
How the main result changes when Fair market value changes and everything else stays at the example values above:
| Fair market value | Offer amount |
|---|---|
| 210,000 | 178,700 |
| 315,000 | 280,550 |
| 420,000 | 382,400 |
| 525,000 | 484,250 |
| 630,000 | 586,100 |
| 840,000 | 789,800 |
Formula
Offer = fair market value × (1 − desired discount) − cost of renovation − desired profitWorked example
Inputs — Fair market value: $420,000; Cost of renovation: $25,000; Desired discount: 3 %; Desired profit (0 to keep the home): $0.
Results — Offer amount = $382,400.00; Offer as a share of market value = 91.05 %.
Frequently asked questions
How much below asking should I offer?
It depends on the market – 0–5% below in balanced markets, more if the home has issues.
Should I deduct repairs from my offer?
Yes, for repairs not reflected in the price.
How do I find fair market value?
Look at recent sales of comparable homes nearby.
What formula does the What to Offer on a House Calculator use?
Offer = fair market value × (1 − desired discount) − cost of renovation − desired profit.