How do you sanity-check a contractor’s rehab estimate?

Question

I’ve noticed contractor estimates can be hard to judge because the total number doesn’t tell you much by itself. A $45k bid can be solid if the scope is complete, or completely useless if it leaves out electrical, HVAC, permits, cleanup, or finish level assumptions. When you’re comparing bids, what actually tells you a contractor knows what they’re doing? Is it the detail in the line items, how they explain allowances, how they handle unknowns, or whether the number matches what you already expected?

Mohammed Rahman · Answer

I agree with Bruce.

Even if you're not an expert in every trade, having a basic understanding of what's involved makes it much easier to spot omissions or questionable numbers.

Getting multiple bids is huge too. Sometimes the value isn't even in the pricing itself, but in seeing where contractors disagree on the scope. If three contractors mention electrical updates and one doesn't, that's something worth digging into.

I also like using the inspection report as a starting point. It's not a complete scope of work, but it can help identify items that should at least be discussed during the bidding process.

At some point, experience becomes one of the best sanity checks. Until then, comparing bids, building your own scope, and asking a lot of questions can go a long way.

Always happy to connect - my DMs are always open!