Explain your offer
A credible offer connects the property’s supported value to its condition, your costs, and your required margin. Explain the relevant assumptions without pretending your estimate is the only possible value. A retail buyer and an investor can reasonably arrive at different numbers.
Put price, earnest money, contingencies, closing timing, included property, and any possession arrangement in writing through appropriate transaction documents. Clarify whether financing, inspections, or title review can affect closing. “Cash” does not eliminate every condition.
Do not increase your number merely to keep a conversation alive. Recalculate when new evidence changes value or costs. If the gap cannot be resolved, decline respectfully and leave a clear record of what would need to change.
Supported resale value is $180,000. Repairs are $30,000, other project costs $20,000, and target profit $25,000. The preliminary purchase ceiling is $105,000, subject to inspection and verified costs.
Decision checklist
- Use supported value and property-specific costs.
- Separate verified estimates from assumptions.
- Put all terms and conditions in proper written documents.
Check your understanding
Can an investor’s ceiling differ from retail value?
Show the answer
Yes. The investor must account for repairs, execution costs, risk, and a required margin.
Your next action
Prepare a one-page offer explanation using a hypothetical property. Identify the three assumptions most likely to change.
Original teaching framework and hypothetical example. Source directory and editorial approach →