Rehab Estimate: Due Diligence
Hello! After you put an offer on a property that is approved by the seller and it is under contract, is that when you’re able to have a contractor inspect the property and provide you with an itemized bid of the scope of rehab work that needs to be done? And if so, are you able to put a contingency in the Purchase and Sale Agreement stating that you’re able to back out of the deal based upon the amount of rehab work that needs to be done on the property?
Most Popular Reply
Hey @Evan O'Brien ! I’ve had my contractor give me a ballpark estimate based on pictures. Typically, I have my contractors go in once I have it under contract and most of them won’t go unless you do. It really depends on your relationship with them. If the home you want has a offers due by, submit your best offer, get it accepted, then due your due diligence once it gets accepted. Use a 7-14 day inspection period to get this done. If the numbers don’t work, back out, and keep putting more offers in.