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Note Appraisal Calculator

Estimate what your seller-financed note is worth to a note buyer in seconds. Enter your original note terms and we'll calculate your remaining balance, then discount the remaining payments at an investor's required yield — adjusted for lien position, ITV, seasoning, payer credit, and property type — to estimate the note's present value.

Results
Estimated Note Value
$170,318

Educational estimate only — actual offers vary by note buyer, state, and due diligence.

Remaining Balance
$195,790

Principal left after 24 payments.

Discount to Balance
$25,472

13.0% below remaining balance.

Required Investor Yield
8.50%

From risk-adjusted model

Monthly P&I
$1,331

Scheduled principal + interest payment.

Months Remaining
336

Remaining scheduled payments.

ITV
68.1%

Note value ÷ property value.

Required Yield Breakdown

How the required yield is built up from the base rate and risk adjustments.

Base yield
Performing 1st-lien residential baseline
+9.00%
Lien position
1st lien
0.00%
Seasoning
24+ payments (well-seasoned)
-0.50%
ITV
60–75% (normal)
0.00%
Required yield
8.50%

The same engine, with the dials exposed

This free appraisal runs GoFlexi's full note-pricing engine — the value you see is the value Pro computes. What Pro adds is control over the assumptions behind it, and somewhere to keep them.

Edit every risk adjustment
Tune the ITV, seasoning, credit, and state adjustments to your own buy box
Partial purchases
Price a slice of the payment stream instead of the whole note
Save your buy box as a profile
Name a set of adjustments, keep several, and switch between them as you appraise

About This Note Appraisal Calculator

A real estate note is the promise to pay that a borrower signs when they purchase a property with seller financing — whether it's secured by a mortgage, deed of trust, or land contract. If you're the seller, you now hold a private note — a stream of monthly payments secured by real estate. At some point you may want to sell that note for a lump sum, and a note buyer will pay you the present value of the remaining payments discounted at their required yield.

This calculator works in two stages. First, it computes your current remaining balance using the original loan amount, note rate, term, and number of payments already made. Then it builds an investor's required yield from a base rate plus risk adjustments for lien position, investment-to-value (ITV), payer credit tier, seasoning, payment history, property type, property condition, and the state's foreclosure timeline — and discounts the remaining payments (plus any balloon) at that yield to estimate today's market value. A full yield breakdown shows exactly which factors are pulling the value up or down.

This is an educational estimate, not a guaranteed offer — real offers vary by note buyer, state, and due diligence findings. If you're structuring a new seller-financed note and want to design terms that maximize both cash flow and resale value, our full GoFlexi calculator lets you model wrap mortgages, amortization schedules, balloons, and tax benefits side-by-side.

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Frequently Asked Questions

How do note buyers determine the value of a real estate note?

Note buyers don't pay face value — they pay the present value of the remaining payments discounted at their required yield. The yield reflects the risk of the deal: lien position, loan-to-value / investment-to-value ratio, payer credit, seasoning (how many payments have been made on time), property type, and payment history. The higher the risk, the higher the required yield, and the lower the price the note buyer will pay.

What is ITV and why does it matter?

ITV stands for investment-to-value — the note buyer's purchase price divided by the current property value. It's the key protection for a note investor: if the borrower defaults, the investor recovers their capital by foreclosing and selling the property. A low ITV (say 60% or below) means a large equity cushion and a lower required yield; a high ITV (above 85%) means thin protection and a much higher required yield, which lowers the note's value.

What is seasoning on a real estate note?

Seasoning is the length of time the note has been performing — typically measured as the number of on-time payments made by the borrower. A note with 24+ months of on-time payments is considered well-seasoned and commands a premium. Unseasoned notes (fewer than 6 payments) are discounted heavily because the borrower hasn't yet proven they'll pay reliably.

Does lien position affect note value?

Significantly. A first-lien note is paid first in a foreclosure and commands the lowest required yield. A second-lien note sits behind the first mortgage and is much riskier — required yields typically jump 3–5% or more, meaningfully reducing the purchase price. Third-lien and beyond are usually only buyable at very steep discounts.

Why does the state matter?

If the borrower defaults, the note buyer has to foreclose to recover their capital. Foreclosure timelines vary dramatically by state — non-judicial states like Texas, Georgia, and Virginia can complete in 90–180 days, while judicial states like New York, New Jersey, and Hawaii can take two to three years. Slower timelines mean more carrying cost for the investor, so they demand a higher yield — which lowers what they'll pay today. The calculator estimates a typical foreclosure timeline for the selected state and applies a matching yield adjustment.

How does property condition affect note value?

Condition affects what the property is worth if it has to be sold at foreclosure. A turnkey A-condition property preserves the investor's equity cushion, while a distressed D-condition property may sell for much less than its stated value, eroding the investor's protection. The calculator adds a yield adjustment for condition — from 0% for A-grade to roughly +2.5% for distressed — which lowers the estimated note value for rougher properties.

Why is the estimated value lower than my remaining balance?

Because a note buyer needs to earn a return on their capital. If the balance is $100,000 and the note buyer requires a 10% yield while the note rate is only 6%, they'll pay less than $100,000 so that the future payments produce a 10% return on their actual purchase price. The gap between remaining balance and note value is the note buyer's yield — and it's the cost of getting a lump sum today instead of waiting for payments over years.

Is this calculator giving me an actual offer?

No. This is an educational estimate based on typical market parameters. Actual offers vary by note buyer, state (some states are more foreclosure-friendly than others), property condition, title issues, and specific underwriting. Use this as a starting point to understand roughly what range to expect before reaching out to note buyers.

What's the difference between a performing and non-performing note?

A performing note has a borrower making payments on time. A non-performing note (NPN) is in default — the borrower has stopped paying. NPN pricing is a completely different market, typically measured as a percentage of the property's value rather than the note's remaining balance, and note buyers expect to foreclose or modify the loan. This calculator is designed for performing notes.

Can I sell only part of my note?

Yes — this is called a partial purchase. A note buyer can buy the next X months of payments (and sometimes a balloon piece) while you keep the tail end. Partials often price better than full sales because the note buyer takes on less total duration risk, and you still get a lump sum now while retaining long-term income. Ask any note buyer if they offer partial options.

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