Plain-English investing term

What Is MAO in Real Estate?

MAO means maximum allowable offer. It is the highest price you can pay while still preserving the return, profit, or financing requirement you need.

Why it matters

MAO keeps the offer tied to the math. Without it, investors start negotiating from emotion, seller pressure, or vibes. That is how a decent lead becomes a bad deal.

PropLurk take: The offer is not what you feel brave enough to send. It is what the deal can survive.

MAO quick math
  • Expected resale value: $300,000
  • Rehab, holding, sale costs, and target profit: $145,000

Result: $300,000 - $145,000 = $155,000 maximum offer

Usually include

  • Supported ARV or income value
  • Rehab
  • Holding costs
  • Financing
  • Selling costs
  • Required profit or return
  • Wholesale fee when relevant

Do not mix in

  • Wishful resale value
  • Hidden fees
  • A rehab number with no contingency
  • Seller price as the starting truth

Common ways investors mess this up

  • Using ARV as net sale proceeds
  • Forgetting holding time
  • Raising the offer without changing any other assumption
  • Applying the 70% rule blindly

How PropLurk uses it

PropLurk connects offer strategy, counteroffer history, and analysis value so your negotiation does not detach from underwriting.

This guide is educational and does not provide investment, lending, tax, legal, or appraisal advice. Verify the specific property, lender, and local rules before making decisions.

Turn the analysis into a cleaner offer range.

PropLurk keeps the definition, formula, assumptions, offer, and decision record connected so the number does not get lost in another spreadsheet.