Accuracy Of Homewyse.com For Rehab Costs

14 Replies

Hello BP,

Does anyone have information on the accuracy of this site or alternatives that you recommend? I am a first time wholesaler just making sure my rehab estimations are accurate.

I just did a very quick look on just one item:

I replaced an oil fired boiler, had multiple bids and went with my go to guy who did it for $6400. Homewyse stated the cost range to be $4100-4900... I would have loved to get it done for that cheap, but none of the subs quoted that.

@Cody Evans They are at least 25% off. I guess someone else buys the materials and places them within arms reach of the job their doing plus everything is easy on their assumption.

I will say this, I looked at shingle roofing last night quick as well. The numbers it spit out for a 15 SQ remove and replace were in the $7-8,000 range. I would pay $5250 for that roof. Looks like the site can be high or low... so I'm not sure how accurate it is.

@Brian Pulaski What they did was took data from the Craftsman line of books. Probably the one for remodeling then just converted it to a website. There are state/county modifiers as well that’s why you can zero it in on zip code. Yeah I’d pay 350-400/sq for roof shingles, but dumpsters here are 700/low boy so no program can guess that. Their hours are plain install, no material carrying, buying of materials, client interaction, overhead. Sometimes I go there for a quick ref, just to see if i’m in the ballpark, only 50% will hit my price.

@Manolo D. yeah I used my last zip code where the work was done. $350/SQ was going rate for tear off, replace and remove debris. My guy had a dump truck with high sides and brought right to the dump, so no dumpsters. Additional layers to tear off cost more and any plywood replacement was extra, but the rate was the rate more or less for every company.

I figure Homewyse used an RSMeans style calculation and adjustments based on location. We used similar when doing Capital Needs/Improvements reports for towns and housing authorities. Rarely did they line up exactly with actual work, but they weren't bad for budgeting.

@Brian Pulaski @Manolo D.

hmmm, 

Did you guys use the materials and add that to the installation estimate?
  

What do you think the impact would be if I used homewyse for all repairs? Would it all even out or end up being too conservative or too far under? How would you suggest amending these numbers from Homewyse?

The website showed me the breakdown of labor, materials, etc... and then totaled it all. So yes the numbers above were for the total job per the website.

As far as will it all even out... Not a clue. The two examples I did, looks like they would be close to evening out, if that were the two scopes you carried for and did. The issue remains that the best a website can do is create a math equation to calculate costs, and it is a roll of the dice if local contractors charge the same, or close to the math equation.

As far as what the impact will be, no idea. Keep in mind this is finding out subcontractor prices, most of your investors will probably hire a GC. You should make sure you are covering a GCs costs on top of it all. I do not know what residential GCs charge for their work. It probably depends on if their company carries any scope, as well as how in depth the deal is.

@Brian Pulaski That’s a little conservative here, that might be true when i’m paying in cash with unlicensed, but here it is around 400-450, a little more than usual, we have a 80-100% worker’s comp ins premium for roofers, and only one insurance company covers it - the state owned. Dumps are extra, more than 2 layers are extra. Low-boys alone are 700. It seems like it, RSMeans now CMD will not hit CA prices as well, we had those JOC government contracts and our bid was 1.25 from the book, it wasn’t even enough still. Somebody was bidding 0.95 factor, I don’t know how they’ll make it.

Cody Evans Why would you think it will even out? What if you hit a series of scopes that will give you an underbudget for 30% at a time? Plus, Brian’s comments are for his own state and his volume/contractor relationship - two factors that compose 80% of the price. When reading the forums, you need to factor state prices vs the overwhelming and ridiculous number in CA. ie 70% quick buy number for a flip is 80-83% in CA.

@Brian Pulaski I mentioned about low-boys because the self-haul system is prohibited, the city dump franchise holder can complain and you can get a $2,000 ticket for self-hauling. And they will, that 2,000 will go to the franchise company. Ridiculous but true. The statement above is true in 80% of the cities. I did demo a 2 storey house and 1 single storey plus cmu wall fence, I burned 35 40yd dumpsters and 22 low-boys.

@Cody Evans I would look at what @Manolo D. is saying, especially being in CA. My roof pricing is standard rate for my area, and it sounds less than going rate for CA. Also sounds like dumpster/dump rates will be higher in CA. Rehab costs are tough for someone with no experience to really get a grasp on. Even those who have done rehabs still need to do some guessing on their numbers.

Even contractors guess sometimes. 25% of the time it’s a guess work. There is no right or wrong estimate, there is only inaccurate, to what degree, who knows.

I have another site I like so far but can you guys weigh in on the accuracy of 

https://www.remodelingcalculator.org/     

I am also now looking for the specific definition of square footage. Lets say I need to replace all the flooring of a 1200 square foot house. Do I only calculate the cost of replacing the flooring for lets say 900 square feet to account for the walls and garage? or do i use 1200 to estimate repairs?

@Cody Evans It's the same story on any and all sites. They are there for reference, national average, all that, they aren't meant to be applied for job specific. Feel free to use them but with caution, use the highest figures and bump them up.

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