MAO and Offer Calculator · Narqix Academy

For acquisitions and lead managers who prepare offers. After reading this page you will be able to calculate the buyer's maximum, the MAO, the offer range and the rental check step by step, and record the numbers in a form the client can approve at a glance.

Track: Real Estate · Role: Acquisitions, Lead Manager · Time to complete: 20 min

The order never changes

Repairs, then ARV, then MAO, then the offer range. The method is taught on the Making Offers page in the Real Estate track. Bring the numbers from the Repair Tier Worksheet and the Comps and ARV Worksheet.

The formulas

Step	Formula
Buyer's maximum	(ARV × percentage) − repairs
MAO	(ARV × percentage) − repairs − the client's fee
Opening offer	About 10% to 15% below the MAO
Target	About 5% to 7% below the MAO
Walk-away	The MAO. Not one dollar higher without client approval
Rental check (B and C class)	(Monthly market rent ÷ class rent factor) − repairs − the client's fee

Choosing the percentage

Market and deal	Percentage
Normal market, normal rehab	70%
Slow market, heavy rehab, lower-value area, or low ARV confidence	65%
Fast market, high-value area, light rehab, strong buyer demand	75%, only with the client's approval

Class rent factor: A = 0.005, B = 0.01, C = 0.025. Market rent is the average of 3 similar rentals nearby. For B and C class areas, use the lower of the MAO and the rental check result, unless the client says otherwise.

Client's fee: set by the client. If the client has not set one, Narqix plans with 10K to 15K and confirms with the client before any offer.

The template

MAO AND OFFER CALCULATOR · (PROPERTY ADDRESS) · (DATE) · (YOUR NAME)

INPUTS
ARV: (ARV)    Confidence: (HIGH, MEDIUM OR LOW)    Class: (A, B OR C)
Repairs: (AMOUNT), tier (TIER), red flags (NONE OR LIST)
Percentage: (65%, 70% OR 75%), because (REASON)
Client's fee: (AMOUNT), confirmed with client on (DATE)

STEP 1. BUYER'S MAXIMUM
(ARV) × (PERCENTAGE) = (RESULT A)
(RESULT A) − (REPAIRS) = (BUYER'S MAXIMUM)

STEP 2. MAO
(BUYER'S MAXIMUM) − (CLIENT'S FEE) = (MAO)

STEP 3. RENTAL CHECK (B and C class only)
Market rent: (RENT 1), (RENT 2), (RENT 3), average (MONTHLY RENT)
(MONTHLY RENT) ÷ (CLASS RENT FACTOR) = (TOTAL INVESTMENT)
(TOTAL INVESTMENT) − (REPAIRS) − (CLIENT'S FEE) = (RENTAL CHECK PRICE)
Lower of MAO and rental check: (WALK-AWAY NUMBER)

STEP 4. OFFER RANGE
Opening offer (10% to 15% below walk-away): (OPENING OFFER)
Target (5% to 7% below walk-away): (TARGET)
Walk-away: (WALK-AWAY NUMBER)

SELLER CONTEXT
Seller's asking price: (ASKING PRICE)
Gap between asking price and walk-away: (AMOUNT)
Options if cash does not reach: (RETAIL PARTNERSHIP OPTION, SELLER FINANCING, SUBJECT-TO, or NONE), client decides

APPROVALS
Client approval needed before offer: (YES OR NO)
Approved by: (CLIENT NAME) on (DATE, TIME AND ZONE)
Market Compliance Card checked for (STATE): (YES)

Worked example: the 1,450 sqft ranch

ARV 250,000 (High confidence), Full Cosmetic repairs 50,000, B-class, normal market, client's fee 15,000, seller asking 165,000.

Step	Calculation	Result
1. Buyer's maximum	250,000 × 70% = 175,000; 175,000 − 50,000	125,000
2. MAO	125,000 − 15,000	110,000
3. Rental check	Rent average 1,800; 1,800 ÷ 0.01 = 180,000; 180,000 − 50,000 − 15,000	115,000
Walk-away	Lower of 110,000 and 115,000	110,000
4. Opening offer	About 13% below 110,000 (95,700), rounded to a clean number	95,000
Target	About 6% below 110,000 (103,400), rounded to a clean number	103,000

What happened: acquisitions explained the comps, opened at 95,000 and agreed at 103,000. Dispositions assigned the contract to a buyer at 118,000. The client's fee is 15,000, and the buyer is at 118,000, under the buyer's maximum of 125,000.

Filled template for this example

MAO AND OFFER CALCULATOR · (PROPERTY ADDRESS) · Oct 20, 2026 · (YOUR NAME)

INPUTS
ARV: 250,000    Confidence: High    Class: B
Repairs: 50,000, tier Full Cosmetic, red flags none
Percentage: 70%, because normal market and normal rehab
Client's fee: 15,000, confirmed with client on Oct 20, 2026

STEP 1. BUYER'S MAXIMUM
250,000 × 70% = 175,000
175,000 − 50,000 = 125,000

STEP 2. MAO
125,000 − 15,000 = 110,000

STEP 3. RENTAL CHECK (B and C class only)
Market rent: 1,750, 1,800, 1,850, average 1,800
1,800 ÷ 0.01 = 180,000
180,000 − 50,000 − 15,000 = 115,000
Lower of MAO and rental check: 110,000

STEP 4. OFFER RANGE
Opening offer (10% to 15% below walk-away): 95,000
Target (5% to 7% below walk-away): 103,000
Walk-away: 110,000

SELLER CONTEXT
Seller's asking price: 165,000
Gap between asking price and walk-away: 55,000
Options if cash does not reach: Retail Partnership Option possible (good area, good condition after repairs), client decides

APPROVALS
Client approval needed before offer: No (inside the approved range)
Approved by: not applicable
Market Compliance Card checked for (STATE): Yes

More practice

ARV 200,000, Needs Work repairs 40,000, fee 12,000, normal market. → 200,000 × 70% = 140,000; − 40,000 = 100,000; − 12,000 = MAO 88,000.
900 sqft, ARV 140,000, Easy repairs 10,000, slow C-class market, fee 10,000. → 140,000 × 65% = 91,000; − 10,000 = 81,000; − 10,000 = MAO 71,000.
2,200 sqft, ARV 380,000, Full Gut 100K to 120K with clear seller answers (use the middle, 110,000), fee 15,000. → 380,000 × 70% = 266,000; − 110,000 = 156,000; − 15,000 = MAO 141,000.
B-class rental check: rent 1,200, repairs 20,000, fee 10,000. → 1,200 ÷ 0.01 = 120,000; − 20,000 − 10,000 = 90,000.

Before you send any offer

ARV set with the Golden Standard, confidence rating noted
Repair tier and estimate noted, with any red flags
Percentage chosen and justified (65%, 70% or 75%)
Client's fee confirmed
MAO, opening offer and target calculated
Rental check done for B and C class areas
Client approval obtained if your campaign requires it
All decision makers included
Market Compliance Card ready for the state

Coach's note: Show your work on the form, line by line. A client who can see 250,000 × 70% − 50,000 − 15,000 approves in one reply. A client who only sees "MAO 110,000" asks questions, and the seller waits.

Never do this: Never go above the walk-away number without written approval from the client. Never reduce the repair estimate or raise the ARV to make the numbers work. Never use 75% without the client's approval.

Check yourself

Write the MAO formula.
When do you use 65% instead of 70%?
In a B-class area, the MAO is 92,000 and the rental check gives 86,000. What is the walk-away number?
The MAO is 120,000. What are the opening offer and target ranges?

Answers

MAO = (ARV × percentage) − repairs − the client's fee.
Slow market, heavy rehab, lower-value area, or low ARV confidence.
86,000, the lower of the two, unless the client says otherwise.
Opening about 102,000 to 108,000 (10% to 15% below). Target about 111,600 to 114,000 (5% to 7% below).