inspection report - estimate needed
New to Real Estate · St. Petersburg, FL · Member since 2019 · 10 posts · 6 votes
inspection report - estimate needed
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Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
3yQuote from @Erica Allen:
@Carlos Ptriawan and @Theresa Harris @Bruce Woodruff I didn't order the inspection... it was already performed on the property. I called handymen and GCs suggested by real estate agent and property manager I'm working with. They wouldn't look because I don't own the property. Sounds like I am in need of a more reliable "team" during my search
So you need to call up one of those guys and ask this question: "What would you charge me to have you look over this inspection report and give me a rough SOW and cost based upon it? This tells them first of all that you value their time, and second of all that you will put your money where your mouth is. Remember there are 1,000 OOS investors just like you asking them to do something for nothing...be the one, the one that isn't just going to waste their time.
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- Real Estate Investor · Saint Paul, MN · Member since 2017 · 543 posts · 474 votes3y
@Bob Stevens That response is really is of no help to someone who is relatively new to purchasing real estate. He obviously doesn’t hav a team in place and is trying to determine what he may be dealing with.
- Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes3y
Quote from @Mark S.:
@Bob Stevens That response is really is of no help to someone who is relatively new to purchasing real estate. He obviously doesn’t hav a team in place and is trying to determine what he may be dealing with.
I am not even sure what I wrote, HOWEVER I am certain it is helpful if you read between the lines,
I do not know how many times I have posted " DO NOTHING WITHOUT A TEAM " So many are just spinning their wheels. Or they buy something they think is good as the realtor said so. Well realtors are NOT part of your team and do not give a darn about you. They overpay, under bid the reno etc . and are now screwed. I see it weekly. So now this poster has nowhere to turn, no idea what the costs will be, and I am certain is overpaying, all a waste of time for the seller and the poster as they cannot close without this info. I get reno budgets in under an hour as I have a team in place, and I know exactly what to pay. TEAM is the key
All the best
All the best
- 3yPatrick ChafePro MemberRental Property Investor · Peabody, MA · Member since 2020 · 25 posts · 10 votes
Hi Erica,
I am a commercial construction estimator out of the Boston area, but I have prepared a budget for a residential property based on an inspection report for a friend of mine looking at a duplex. I agree with most people on here suggesting to pay a general contractor or even an independent estimating company to prepare a budget based on the report. But as we know this industry can move fast and sometimes time wont allow to get a GC involved before making an offer, in which case you may need to prepare a budget yourself. If you find yourself in this position, there are a couple strategies you could use:
1) Historical Data - If you have done work like this in the past but not in Ohio, you can build your budget based on the costs of similar work in other areas. To get the cost into "Ohio Dollars", look at a website called RSMeans. This website (and book) can provide unit cost data as well as geographical cost data from city to city. You can apply the cost ratio to your historical costs to get the anticipated cost of work in Ohio. ** Be careful if you use the unit costs(i.e. flooring cost per square foot) data on small quantities, sometimes the math doesn't work when the qty is to small. RSMeans isn't a perfect science so i like to be conservative with this. For example from Boston to Ohio, if Ohio typically cost 20% less than Boston per RSMeans, i will only do a 12-15% difference to give myself a buffer.
2) Labor & Materials -Break down and itemize the scope of work, and then allocate costs based on labor and materials. When looking at material costs on google, be very careful of where you get the information. If a manufacturer is providing the cost of material, remember there will be distributor mark ups and then general contractor mark ups. Labor can be a little trickier, but i like to ask myself "how long would it take me to do this" and then multiply the labor hours by a labor rate. I like to be VERY conservative with this approach, and sometimes the more complicated scopes are harder to do this with. Also keep in mind to add a General Contractor overhead and profit % at the end.
When i am doing my own budgeting, i often use a mix of historical data as well as labor/materials. Sometimes i will even approach the budget for an in item in a few different ways to see if i get close to the same answer (i.e. Labor/Materials, Historical Data, Unit Price). I will also add a contingency to the budget for unforeseen scope.
In my opinion when preparing your own budget it always better to be very conservative to make sure the deal works, and if it comes out less than the conservative budget, great! You'll make more money or just won't have to spend as much.
Sorry for the long winded response, but feel free to reach out with questions.
Thanks, - Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes3y
@Erica Allen- Inspectors likely wont assign dollars on repairs ...try to forge a realtionship or two with people that are familair with building/ remodeling type work and add these folks to your speed dial for assistant on estimates and also for work .....this is crucial if you plan to buy properties that arent turn key ....ask realtors / other investors / friends / colleagues for referals ....many of these type of people are busy ..often weeks / months out for work ...but maybe they can fit in times for estimates in between jobs ...good luck
- 2yMatthew MorrowBusiness MemberInvestor · PA - NY - NJ · Member since 2019 · 458 posts · 168 votes
Navigating repair costs can be tricky, especially for a property you don't own yet. Here are a few suggestions:
- General Contractor Consultation: Some contractors may be willing to walk through the property with you for a fee, providing rough estimates based on the inspection report.
- Online Estimation Tools: Websites like HomeAdvisor or Angie's List can give you ballpark figures for specific repair jobs based on your location.
- Local Real Estate Investor Groups: Connect with local investor groups or forums specific to Cleveland. Members often share resources and might have contacts who can help.
- Ask Your Real Estate Agent: They often have a network of professionals they've worked with and can recommend someone who might be willing to help.
Hope this helps, if you need a solid contact in Ohio, @Richard Clark is in the youngstown area and could certainly help you out.
CORE Team | Realty ONE Group Supreme547 Reviews - Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes2y
Quote from @Erica Allen:
I've been searching for my first investment property primarily in the Cleveland area. The property I am considering purchasing has an inspection report but I don't know how to get an estimate of cost for the recommended repairs. Every company I've called "can't help" because I don't own the home... Suggestions for HOW you guys estimate these things regularly and/or someone in Cleveland who can help? Thanks
You need a team in place, do not even think about doing it alone. When I need a walk through my guy is there within the hour. ALL you need to do is connect with those doing deals there and allow them to help you. Correct nobody is going to walk it for you for a maybe of a job."
All the best
- 2yRobert EllisBusiness MemberDeveloper · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
Quote from @Matthew Morrow:
Navigating repair costs can be tricky, especially for a property you don't own yet. Here are a few suggestions:
- General Contractor Consultation: Some contractors may be willing to walk through the property with you for a fee, providing rough estimates based on the inspection report.
- Online Estimation Tools: Websites like HomeAdvisor or Angie's List can give you ballpark figures for specific repair jobs based on your location.
- Local Real Estate Investor Groups: Connect with local investor groups or forums specific to Cleveland. Members often share resources and might have contacts who can help.
- Ask Your Real Estate Agent: They often have a network of professionals they've worked with and can recommend someone who might be willing to help.
Hope this helps, if you need a solid contact in Ohio, @Richard Clark is in the youngstown area and could certainly help you out.
most general contractors would do that at no cost at least go through it. as a agent and general contractor / builder in Columbus oh I think you offer a lot of great advice here. Erica, there are home inspectors that inspect construction as well as doing home inspections. I can offer some in columbus and central ohio I don't know any in Cleveland
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