Price vs. Value Analysis
Compare the asking price against NOI-based calculated value to see if a property is undervalued, fair, or overpriced.
How Price vs. Value Analysis Works
The tool divides your net operating income by your target cap rate to calculate what the property should be worth based on its income. It then compares that calculated value to the actual asking price and shows the dollar spread and a clear verdict: undervalued, fair value, or overvalued.
- Calculated Value = NOI / Target Cap Rate
- Spread = Calculated Value minus Asking Price
- Positive spread means the property is undervalued at the asking price
- Verdict badge instantly tells you the deal quality
Negotiating With Numbers
Knowing the income-based value gives you leverage at the negotiating table. If NOI supports a $468,000 value but the seller is asking $385,000, you know you have margin. If the asking price exceeds the calculated value, you know exactly how much to negotiate down.
- Back your offers with income-based math the seller can verify
- Quantify exactly how much room you have to negotiate
- Walk away confidently when the numbers don't work
- Test different cap rate assumptions to stress-test your offer
Sample Output
See what this feature calculates for you.
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