Should you have a Contractor walk the property with you?

Question

Hi BP Community,

Recently, I've been looking at fixer-uppers and noticed that most of them usually require more than one specialized form of work. E.g., roof repair, window replacement, floor replacement, painting, etc. I was thinking perhaps it would be easier to just bring a general contractor to walk the site and provide an estimate on all the rehab costs, rather than to find separate contractors for each specialized task.

For those of you who have worked on fixer-uppers, did you bring a general contractor to walk the property with you and give an estimate on rehab costs? If so, how has that worked out?

Jonathan Klemm · Answer

Hey @Jonathan Feliciano - Love your name brother!

I HIGHLY RECOMMEND HAVING A GC WALK the property with you...if the thought is even crossing your mind then the answer is yes.

Up here in Chicago we charge a fee of $197 to walk properties a provide a page report with ball park estimation.

With contractors especially you get what you pay for, so find SOMEONE WHO KNOWS THEIR TIME IS WORTH SOMETHING!  Most contractors don't which keeps them on the hamster wheel forever.'

Until you have done several similar projects it's very hard to figure out renovation costs and even still its hard...Even for us EACH PROJECT IS DIFFERENT and each client is different.

Scott Mac · Answer

I don't know how you work, but you might want to think about hiring an inspection done on the home.

The inspector can provide you with a written report of the things that are problematical in the home.

Then you can discuss prices with individual subcontractors.

Like all home inspections, the inspector may miss some things- they don't guarantee they will get everything.

Good Luck!

Jeff Roth · Answer

Hi Jonathan-

Great questions.

Should you have a general contractor walk the property with you at a fixer-upper you are interested in to get estimates on the cost of repairs?

This is a good idea and should be done during due diligence after you have the property under contract.

There are some contractors that just work with investors and efficiently get the work done on fixer-uppers or flips in a timely and cost effective way.

They may charge you for the estimate which is credited to any work you have done.

A general contractor is not a replacement for a quality home inspector and the home inspector may find additional work that needs to be done so good to have them there on the same day if possible.

Both results and estimates are useful in retrading or renegotiating after the due diligence.

To your success!

Bryan Montross · Answer

First, if you are not willing to be the "general contractor" yourself, meaning, talking to and hiring specialty workers, making sure the timing is correct, etc., then hire a General Contractor. Some people are good at just hiring our specific tasks, but I find it easier to hire someone to come in and do the whole project.

Generally, I wait until I have a property under contract to bring a contractor out to walk the property and give me quotes for the work I want done. Occasionally I will ask a contractor before I get a property under contract for a rough estimate on certain things if I am just not sure what it would cost, but I usually send along a video walkthrough or pictures. Some will give you the numbers, some will want to look at the property and may or may not charge a fee for the service.

I will say, if you start bringing more business to a contractor and develop the relationship, they are more likely to help you out and walk the property with you. However, by that point you probably start to have a good idea of the rough costs and can put in an offer using rough numbers before needing to get quotes from a contractor.

John Mason · Answer

https://www.abl1.net/blog/what-to-look-for-during-a-contract...

John Mason · Answer

Maybe take a  complete video of your walk through and share with them?

Mohammed Rahman · Answer

@Russell Brazil - you may be able to have a contractor willing to do this if you pay them for the site visits.

Then again, good contractors are BUSY - why would they walk a site with someone they've never done a deal/job with already for a few $ ?

Your thought process on the contractor providing quotes to possibly "win" a job may seem correct on surface level as a lot of businesses offer "free-mium" products - but ultimately time is money, especially in real estate where good contractors are in high demand and could better spend their time finishing a project before accepting the next one.

What you're suggesting *may* work if its a few site walkthroughs, which isn't abnormal if you've worked with the contractor before - but don't expect contractors (at least the good ones which are usually busy) to jump at the opportunity to keep joining you as you look through opportunities.

Jonathan Feliciano · Answer

@Russell Brazil

My thought process is the contractor could potentially win your business by providing you a quote on rehab costs.

Have you had a contractor walk a potential property with you? Or have you reached out to contractors for the opportunity? If so, what did they tell you?

Russell Brazil · Answer

Why Would a contractor walk a property with you? Are you paying them?

Should you have a Contractor walk the property with you?

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