Deal maths · 4 minute read
How to calculate your maximum buy price for a flip
The short answer: Maximum buy price equals expected resale minus transport, cleaning and repairs, selling fees, other costs, contingency and the return you need. If any input is still a guess, the result is a working limit, not proof of a profitable deal.
Use real resale prices, not hope
Start with what genuinely comparable items sold for in your local market. A seller’s asking price and an ambitious active listing do not prove resale.
Leave room for uncertainty
A contingency is money reserved for what you cannot see yet: an extra trip, a replacement battery, a missing part or a slower sale. It does not make a weak resale guess safer, but it can stop a thin margin looking better than it is.
Treat the number as a ceiling
The result is the most you could pay using the numbers entered. You can offer less. If inspection changes the condition, transport plan or resale price, calculate it again before buying.
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