Learn how to calculate the maximum offer price in a novation real estate deal. Use comparable sales from the same neighborhood with similar square footage and year built, but base your analysis on the property's current condition, not after-repair value.
Determining how much you can offer a seller on a novation deal is similar to how you would determine your MAO on a wholesale deal, with a few key differences. You still need to be conservative with your numbers, and only use comps that are of the same property type in the same neighborhood, without crossing any main roads, and of similar square footage and year built. A big difference though is that instead of looking for ARV comps, or comps that have already been renovated and are selling for top dollar, we are looking for as-is comps.
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