When did you become comfortable with pricing repairs?

Question

Same ol story, I'm not a construction guy and have no education on pricing out repairs. I'm pretty confident that the podcast and the calculators don't go over specific repair estimates because prices vary so wildly between different regions. For example, the stuff I can buy here in Austin would be 3x the price of the stuff I can buy in Michigan where I'm from, but labor prices would be even more different because of the high amount of immigrants here (versus the terrible government in Mi, who knows what would be better).

I've found a number of books on the subject. Dewalt has a book that gets fairly in-depth for estimating materials needed. Of course we have Jay Scott's books, which are also pretty good. But what they can't really put into the equation is both the cost of labor and of the profit margin for the construction companies themselves, cause you know they mark up prices substantially.

I'm left wondering how the heck I'm going to figure this stuff out! What was YOUR turning point for getting accurate ballpark figures without actually purchasing the house? I don't want to trust any realtor as I've only found one good one in our area so far and I'd like to be able to be more cynical about any estimates that come my way.

Robert Hudson · Answer

What items are you buying in Austin that are three times higher than in Michigan?

Matthew Paul · Answer

Now to add to your question , the difference in prices between contractors will throw all you learn off .

Basically , you think you have prices pretty close , you found a decent guy to work with ( Bob) and he has done a decent job at a cheap price . So you go buy a house based on previous knowledge . You get the house and call Bob and tell him you have a job for him . Well Bob tells you he took a job with benefits ( because he wasnt making any money as a contractor) Now you start looking at other contractors and you get sticker shock . They are all twice what Bob was charging .

Some contractors create a job for themselves , other contractors create a business .

Mike Dymski · Answer

Find a contractor through networking and have them walk the house with you and provide a quote. You can get additional quotes then or once you are under contract.

Ritch Bonisa · Answer

It's a great question - it takes a while. You need a contractor you can learn from. I always encourage people to have an ally (friend, contractor you work closely with, etc.) have them walk the property with you and fully understand the costs BEFORE you buy the property. Once you buy it - there aren't may ways out. Also, don't think you have to go with the lowest bid - you get what you pay for. If the margins on the deal are too tight - don't do it. No matter what you do some of the projected costs will likely increase.

Christian Hutchinson · Answer

Well there are different level of repairs for different levels of houses.

For instance...

I have 2 ranches and a triplex. I let anyone hack away at those. They are my try out homes. Someone says they are a "handy-man", plumber, painter, etc its there tryout. Even if they mess up costs are low, and not too much can go wrong. Also, not much can break in those homes.

My other properties, I only use people who have "worked" their way up to this level, or reputable local companies.

Painting a 1000 sq ft house, standard rental, shouldn't cost more than $1200 in labor, basically $150/room. Every 4-5 years I'll pay to have a really good painter do the house so it locals super nice.

Shaun C. · Answer

Not sure what you'd be buying that's going to be 3x the price because you're buying it in Austin, unless you're just referring to the differing level of finishes you would be putting in.

It just comes in time. Being able to estimate (or better yet actually determine) square footages, experience in knowing how much it really costs to remove drywall, put in a beam, replace cabinets, run plumbing and electrical; it all comes with walking with contractors/your subs to guess better and better. You'll never know until you do.

Mike B. · Answer

my thoughts would be.. have 3 contractors come out and give you prices for re-modeling your own home. Then calculate based on the work (e.g. bathroom remodel, etc) the price/Sq ft. Determine the avg price among the 3 and there you go!

Also helpful.. BP people in your area may respond with avg cost / sq ft for certain remodeling projects. Try to also connect with REIA in your area, attend meet/greets to speak with members about what they're encountering

When did you become comfortable with pricing repairs?

When did you become comfortable with pricing repairs?

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