Q & A Saturday – How Do You Find MAO?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “How Do You Find MAO?

MAO - Maximum Allowable Offer - Massachusetts and New Hampshire Real Estate

In this video Shaun discusses what the Maximum Allowable Offer (MAO) of a house is and how to find this number.


Some of the main points covered in this video are:

1)      What is MAO?

2)      Why you need to find ARV first

3)      What percentage to use

4)      Figuring out your repairs


Finding the MAO (Maximum Allowable Offer) of a house is critical.  If you want to rehab and resell houses, or sell properties to people that do, you need to know how much to pay for them.  Everyone can have slightly different ways to calculate this number but the quick method usually involves taking a percentage of your After Repair Value (ARV) and subtracting off the estimate of repairs needed to get it worth that ARV.  As discussed in our last video ARV is the most important number you have to figure out since it is the biggest factor in getting your MAO.  Of course getting your repair estimates close is very important too but since the ARV is so much bigger than the repair costs small changes here will effect your MAO much more than much larger changes (on a percentage basis) to the repairs.


Do you want to sell a house that is a fixer upper?  Do you need to sell a house in Massachusetts or New Hampshire and want to see what are MAO is?  If you would like to sell your home fast and hassle free schedule a consultation with us today.


Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.


Some useful resources:

–          Our last video on How to find the ARV.

–          Our video on All the Costs to Rehab a House

–          Our Main Article on Selling a Home As Is.

–          All of our Articles and Videos on Selling a Home As Is.

–          If you want to sell a house that needs fixing in Massachusetts or in New Hampshire we can help.





(Image credit: Adaption of MAYO via instituciones.sld.cu)


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