Reprice a Diligence Finding

Converts a quantifiable due-diligence finding into a recommended purchase-price credit, the cost to cure grossed up by a contingency for overrun risk. Inputs are the estimated cost to cure and the contingency percentage.

Interactive Tool

The finding

Estimated cost to cure

Contingency for overrun risk

Estimated cost to cure

$350,000

Contingency (15% for cost-overrun risk)

$52,500

Recommended price credit

$402,500

cost × (1 + contingency)

Present the finding, quantify it, and reprice it. A quantifiable cost reprices the deal, it does not kill it. The credit preserves the original return profile and reframes the negotiation: the price must now reflect the cost, the uncertainty, and the execution risk.

Learn the concept

This calculator comes from the free Real Estate Finance course, where the concept is taught with readings, worked examples, and practice questions.

Open Real Estate Finance

Built by Devon Coombs, CPA, MBA, Teaching Professor of Finance at Santa Clara University.