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Off Market Deal Premium Calculator

Off-market deals sometimes trade at discount or premium to market.

%
%
$

Valuation difference

$1,107,692

On-market value

$27,692,308

Off-market value

$28,800,000

How the math works

Values calculated at each cap rate. Premium or discount = off − on.

$1.8M / 6.5% = $27.7M on-market vs $1.8M / 6.25% = $28.8M off-market = $1.1M premium.

How to Use

  1. Enter on-market cap rate %.
  2. Enter off-market cap rate %.
  3. Enter NOI.
  4. Read valuation difference.

Frequently Asked Questions

Off-market dynamics?

Less competition = lower pricing sometimes. But limited information = premium for known quality. Institutional buyers often pay 3-7% premium for clean off-market. Speculators often discount 5-10% for off-market uncertainty.

Information asymmetry?

On-market: standard info package, tour, OM. Off-market: often limited docs, seller direct. Buyer takes more risk. Balance with enhanced due diligence. Build-to-hold strategy better fits off-market (time to learn property).

When premium?

Distressed seller: discount possible. Owner-occupant institutional seller: premium for complete info + smooth sale. Broker-less: discount (fewer fees reflected). Each context different. Underwrite independently of on-market comps.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.

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