09/04/2026
Smart Capital Center's CRE Maximum Purchase Price Calculator has an optional third field that most people skip, and it is the one worth using. π―
When you enter the asking price alongside NOI and your target cap rate, you get two more numbers: the cap rate the seller's price actually delivers, and the dollar gap between that price and your maximum.
Here is how it looks. A $4,500,000 ask on $200,000 of NOI implies a 4.44% cap rate. If you are targeting 5.00%, the seller wants you to accept 56 basis points less yield, and the price sits $500,000 above your number. π¬
That gives you something specific to negotiate with before anyone has opened a rent roll. π
How far above your number does an ask have to sit before you walk away?