Pleasanton, CA · Member since 2021 · 16 posts · 6 votes
Hi All, Hope everyone is doing well. I'm a newbie and want to buy a fixer-upper in East bay. I was hoping that some general contractor would be able to help me to determine ballpark repair estimates either by looking at Inspection reports or by walking the property in case their schedule permits. Contract obviously will go to them. DM for more details. Thanks for reading this and god bless.
Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes
4y
You will need to PAY the contractor for going out there to do an estimate. The good contractors that I work with cover primarily Oakland, Pittsburg, Antioch, Hercules, Richmond, Berkeley and Vallejo. All 6 of them have told me they refuse to go onsite to give an estimate based on the fact that someone "might" buy a place if they are not getting paid.
Pro Tip. If you do find a contractor...make sure t is convenient for the contractor, not you. Asking a contractor to come out at noon on a Saturday for this is a flat no go. You will need to meet them EARLY in the morning when the sun is just coming up before you go to work so as not to interfere with the project(s) that they are already working on and getting paid for.
Realtor · Plain City, OH · Member since 2022 · 82 posts · 58 votes
4y
I recommend reading "The Book on Estimating Rehab Costs" by J. Scott. You can begin to get an idea there and then ask more specific questions here.
Find a real estate agent who works with investors. Start walking properties and try running the numbers. The agent may be able to refer you to a contractor who can walk the property with you.
Realtor · Oakland, CA and a Real Estate Investor with Multi-Family Units and a Self Storage Facility · Member since 2016 · 2k+ posts · 2k+ votes
4y
You will need to PAY the contractor for going out there to do an estimate. The good contractors that I work with cover primarily Oakland, Pittsburg, Antioch, Hercules, Richmond, Berkeley and Vallejo. All 6 of them have told me they refuse to go onsite to give an estimate based on the fact that someone "might" buy a place if they are not getting paid.
Pro Tip. If you do find a contractor...make sure t is convenient for the contractor, not you. Asking a contractor to come out at noon on a Saturday for this is a flat no go. You will need to meet them EARLY in the morning when the sun is just coming up before you go to work so as not to interfere with the project(s) that they are already working on and getting paid for.
Indianapolis · Member since 2019 · 288 posts · 179 votes
4y
Scope fees are standard and will help you build a good relationship with a GC. These prices can vary depending on what level of detail of a SOW or estimate you're needing done. Save yourself the hassle and make sure you're working with a GC who is licensed and insured - for instance, the GC I work with even guarantees their work up to a year.
Make sure you have realistic expectations though, if you need a line-item detailed estimate for a job upwards of 50k - you're not going to be able to get a 24 hour turn-around. Building relationships with contractors, and paying scope fees, will ensure you can get pricing or approximations in a more timely manner - showing that you're a serious customer and not just taking advantage will help your credibility in the long run, especially if you're not getting every property you're having them come out to bid on.
@Brian Garlington what is a contractor scope fee one should expect to pay in the East Bay?
That varies depending on the type of dwelling, how much detail you need and (no joke) the "mood" of the contractor. Of course the first thing that the good ones will ask is if you are pre-approved with a lender. People seem to always say "Yes"...then when asked "By what bank and for how much?".....sometimes they stumble over their answer so be prepared for that...........the answer to that question will certainly help determine how serious you are about buying now and what they may "charge you".
I recommend reading "The Book on Estimating Rehab Costs" by J. Scott. You can begin to get an idea there and then ask more specific questions here.
Find a real estate agent who works with investors. Start walking properties and try running the numbers. The agent may be able to refer you to a contractor who can walk the property with you.
@Avinash Dongarwar, I second reading that book by J. Scott. Even if you don't know construction, you should be able to get a ballpark figure. Then you can give that to your contractor who will walk the property and see where you got it wrong. It will be good practice in any event and you should be able to ask good questions on why the contractor thinks this or that is such and such price.
I have a good friend who knows everything there is to know about construction. Retired former contractor. He reviewed our own estimates on three properties using that book. We were low by about 10% on the first and second then just about right on the third.
Contractor · Coachella Valley, CA · Member since 2017 · 252 posts · 176 votes
4y
As a contractor, I have been in this situation a few times. As stated above, you need to pay for the contractor to give you this information since the entire project is speculatory on IF you purchase the property
What I have done in the past is charged a $250 1 hour walkthrough with the customer. At that time I point out any major problems that I see as being potential costs and listen to what the customer wants.
Based on that information I give them general costs in an estimate. If the customer ends up buying the house I will credit the $250 paid towards the overall project & once hired will release an itemized breakdown of project expenses.
Estimating rehab costs is no small task. This is not something that can easily be done in an hour. Renovation budgets can take days to prepare in some cases and you should always have a contingency budget. It seems the cost is always greater as you encounter undiscovered problems, which will happen.
What I would recommend doing is figuring out what the after renovation value will be and create your own realistic budget for rehab costs. By doing this you may be able to self predict if the amount of work that needs to be done even seems remotely realistic prior to involving a contractor.