# The maximum allowable offer import { Card } from "zudoku/ui/Card"; import { Code2, SlidersHorizontal, CircleAlert } from "zudoku/icons"; Read the maximum allowable offer and its costs to decide whether the returned amount is usable. **This is the investor's ceiling — your offer to the seller is this minus your fee.** ## Read the ceiling and its flag `max_allowable_offer` is the highest purchase price at which a cash flip buyer on standard financing clears the target margin. It reverses a flip profit calculation; it does not predict what the property will trade at. `max_allowable_offer.amount` is in whole dollars, rounded to the nearest thousand. `max_allowable_offer.clamped` is `true` when no purchase price clears the target margin at this repair budget. When it is `true`, the amount is **not an offer** and must not be presented as one. The flag uses the raw calculation before rounding. A small negative result therefore stays clamped instead of becoming a usable zero-dollar offer. Read the flag before acting on the amount. Both members are present whenever the offer is a priced object. On a priced answer, the object is absent whenever `comp_band`, the range implied by comparable sales, is absent. A partial answer instead carries `max_allowable_offer: null`. ## Read the cost stack `cost_stack` accompanies a priced `max_allowable_offer` object. A partial answer has a null offer and no cost stack. Its amounts are whole dollars; its holding period is days. | Member | Meaning | | --- | --- | | `cost_stack.down_payment` | Cash the buyer puts into the purchase. | | `cost_stack.loan` | Borrowed amount: the maximum allowable offer less the down payment. | | `cost_stack.interest` | Interest on the loan over the holding period. | | `cost_stack.points` | Lending points charged on the loan. | | `cost_stack.hold_days` | Holding period; a larger repair budget means a longer hold. | | `cost_stack.closing_costs` | Costs charged on both purchase and resale. | | `cost_stack.target_profit` | Target margin multiplied by the unrounded repaired value. | The response's `target_margin` states the fraction used. Multiplying the published `rehab_adjusted_arv` by it can differ from `cost_stack.target_profit` because the published repaired value is rounded. The offer uses the unrounded value. ## Check the arithmetic **The down payment plus the loan equals the maximum allowable offer exactly.** That identity holds even when the offer is clamped. When `max_allowable_offer.clamped` is `false`, add the down payment, loan, repair budget, interest, points, closing costs and target profit. They reconcile to `rehab_adjusted_arv`, subject to rounding. This whole-stack comparison is different from the exact down-payment-plus-loan identity. The offer and repaired value round to the nearest thousand; other amounts round to whole dollars. The reconciliation gap stays a little over a thousand dollars across the service's repair brackets. Very large repair budgets can increase it because longer holds put more financing cost on each rounded dollar. When the flag is `true`, the published price is a floor, not a solved price. The stack still describes that price, but it does not reconcile to the repaired value. The difference can be large. ## Understand the assumptions Down payment, interest, points, closing costs, holding period and margin are policy figures chosen by judgment and intended to be tuned. They are not fitted to a data set or quoted by a lender. [Accuracy and limits](/scoring/accuracy-and-limits) separates checked arithmetic from market accuracy. **`cost_stack.assumptions` — the figures the offer was solved with.** On `POST /v1/predict`, `cost_stack.assumptions` carries the figures used to compute the offer: `cost_stack.assumptions.down_fraction`, `cost_stack.assumptions.annual_interest_rate`, `cost_stack.assumptions.days_per_year`, `cost_stack.assumptions.points_fraction`, `cost_stack.assumptions.closing_fraction`, `cost_stack.assumptions.closing_applies_to_purchase`, `cost_stack.assumptions.carry`, `cost_stack.assumptions.hold_base_days`, `cost_stack.assumptions.hold_days_per_thousand_rehab`, `cost_stack.assumptions.rehab_lift_low_share`, `cost_stack.assumptions.rehab_lift_high_share`, `cost_stack.assumptions.offer_rounding_increment` and `cost_stack.assumptions.arv_rounding_increment`. The last two are separate publication increments; the cost stack uses the unrounded repaired value. With those and `comp_band`, you can recompute the offer for a different repair budget or margin yourself. Batch answers do not carry it. ## Next steps