Home Repair Cost Estimator (and Takeoff) Software Recommendation
I've read a number of inquiries on this forum from investors asking for recommendations on "Cost Estimator" software for flips. Unfortunately, most of the replies I've seen on here tell people to read books, learn all they can, and develop their own spreadsheet. That may be good information. But, that's not really helpful in some situations. I've done several flips, and developed my own spreadsheets. But, they're not really efficient. The more complex my builds, the more time I find myself spending at the computer researching prices and crunching numbers! In fact, I lost a deal last year because it took me too long to modify hundreds of lines of pricing every time there was a Change Order, whether from my hard money investor or my contractor. Its become overwhelming! There's got to be an easier way!
While I understand that most of the off-the-shelf programs use a spreadsheet under the hood, I wonder if there's any added value or benefit to some of the more popular estimating or takeoff programs? I'm looking for something that easy to use and offers these features:
a.) has a regional pricing database that can be updated with local prices,
b.) is technically sophisticated, customizable, and flexible,
c.) is affordable for a 2-person operation (around the $100./mo. price range or less),
d.) is scalable, for when my business grows, and
e.) OPTIONAL - has a suite of related features (such as soft money lenders, list of foreclosures and vacant properties, a CRM, automated marketing, etc.).
I've looked at Bigger Pockets' "Rehab Estimator" tool. And, while it certainly seems useful, especially for the investor that's just starting out, my impression is that its not as robust as some of the commercial products on the market!?! Is that a correct assumption? I've done considerable research the past few weeks. And, here's a list of the products I've reviewed that seem to hit the sweet spot between a small investor's needs and a corporate-sized platform:
Cost Estimator (and Takeoff) Software
1. Rehab Estimator Calculator (Bigger Pockets tool) - FREE
2. Houzz Pro Estimating Software - $99,/mo.
3. Buildertrend - $99./mo.
4. Xactimate Remodel (Verisk) - $50./mo. for Studio version (first year only)
5. FlipSter System - $97./mo.
6. REI/kit - $ 64./mo. for Marketing Starter; $104./mo. for Markting Success (includes more/better leads)
7. Simsol Estimating Software - $100./mo.
8. Clear Estimates - $59./mo.
9. Autodesk Takeoff - $104./mo. to $155./mo.
For Apple users only....
10. Property Fixer (Apple devices only) - $20./mo.
11. Property Evaluator (Apple devices only) - $20./mo.
At the very least, I've provided a curated list of what appears to be some of the leading software in this market. All of these have their own , and weaknesses. A few were recommended by Bigger Pocket members; two by an insurance adjuster who's also an investor. But, several appear to be geared more toward wholesaling rather than renovations or multi-strategy. And, some appear to be more for contractor Takeoffs. (I'm not sure if there's a difference between the usefulness of Takeoff software for rehab estimating or not!?! Please explain.) Has anyone used any of these programs, or have any opinions about them? And suggestions about these or other solutions to my problem would be greatly appreciated, so I can spend more time finding and flipping houses, and less time being an accountant!
Thanks in advance for any input or advice you might offer! :-)
Hi Robert,
It looks like you've done extensive research on the current estimating software offerings available. Here's my thoughts and feedback on your needs and lists.
a.) has a regional pricing database that can be updated with local prices,
Yes, the estimating tool should provide you with estimate templates that include price ranges to help get you started, but ultimately you should be creating your own pricing database with your own prices that fit your specific market and materials you will be using on your projects. Now that you have a couple of flips under you belt, you should have a good understanding of what stuff costs and be creating your own database.
b.) is technically sophisticated, customizable, and flexible,
The great thing about spreadsheets is that they are completely customizable and flexible, so that is why many investors recommend spreadsheets to handle the estimating process. The estimating software should be as customizable as a spreadsheet. You should be able to customize EVERTYTHING (categories, repair items, prices, descriptions) add/delete rows, easily drag-and-drop rows to re-order to tailor your estimate exactly how you need it.
c.) is affordable for a 2-person operation (around the $100./mo. price range or less),
That's a reasonable budget, but can certainly find options for cheaper
d.) is scalable, for when my business grows, and
If you want to scale your business and grow your team, the estimating software should allow you to add multiple team members to your software account so your entire team can create estimates and collaborate on projects.
e.) OPTIONAL - has a suite of related features (such as soft money lenders, list of foreclosures and vacant properties, a CRM, automated marketing, etc.).
Some of the companies you listed like BuilderTrend, Xactimate, Houzz, Clear Estimates, Simsol, Autodesk are softwares for contractors/remodeling companies and not built specifically for the house flipping/rehabbing niche, so they will not have all or any of the related lead management, deal analysis, functionality you are looking for.
Other Considerations
(f) Ability to Save Templates for Future Projects
Once you get done customizing your estimate you should be able to save your estimate as a template that you can re-use on future projects.
(h) Ability to Create Estimate Reports
All of the data that you enter into your estimate should be used to generate a professional, printer friendly shareable estimate report that you can use to share the SOW and budget with your business partners and lenders.
(i) Ability to create a Scope of Work document for your Contractors
All of your estimate data can also be used to generate a Scope of Work document telling your contractors exactly what scope they need to include in their bid proposal.
(j) Ability to select project materials and create Material List Report
You should be able to assign material SKUs directly to your estimate items which will be used to generate a project material list that you can use to shop for materials.
(k) Ability to Track Contractor Bids
Once you receive bids from your Contractors you should be able to track your Contractor bids directly in the estimating tool so you can evaluate the best bid and use their number in your estimate.
(l) Ability to Track Your Actual Expenses Against Your Budget
Once you get the property under contract you should be able to compare your actual expenses to your initial estimate so you can manage your budget and forecast profitability before it's too late.
Tool Feedback
Here's some feedback on the tools you researched.
1. Rehab Estimator Calculator (Bigger Pockets tool) - FREE
- Doesn't provide pricing, not detailed enough, not flexible enough, can't save templates, can't assign materials, can't create SOW...not really a software platform that is scalable.
2. Houzz Pro Estimating Software - $99,/mo.
- Built for contractors and remodelers, so won't have the niche flip/rehabbing tools.
3. Buildertrend - $99./mo.
- Built for contractors and remodelers, so won't have the niche flip/rehabbing tools or template. Also, it's way more expensive than $99/month, its probably more like $250 to $500/month
4. Xactimate Remodel (Verisk) - $50./mo. for Studio version (first year only)
- Built for insurance companies/contractors and remodelers, so won't have the niche flip/rehabbing tools or templates.
5. FlipSter System - $97./mo.
- Built for flipping niche, but not flexible enough, can't save templates, can't assign materials, can't create SOW. I also generally don't like their marketing tactics upselling you on guru real estate programs.
6. REI/kit - $ 64./mo. for Marketing Starter; $104./mo. for Markting Success (includes more/better leads)
- Built for flipping niche and could be a good option, but I'm not sure how flexible it is or whether you can assign materials, create SOW, etc. Also doesn't have project management tools for managing or tracking on-going projects.
7. Simsol Estimating Software - $100./mo.
- Never heard of this, website is currently down so can't research.
8. Clear Estimates - $59./mo.
- Built for insurance companies/contractors and remodelers, so won't have the niche flip/rehabbing tools or templates.
9. Autodesk Takeoff - $104./mo. to $155./mo.
- Appears to be built for large commercial general contractors that utilizes CAD drawings and 3D CAD files to perform takeoffs. This type of software would not be useful for a flip project that won't have 3D CAD drawings.
Quote from @Robert Walden:
(I'm not sure if there's a difference between the usefulness of Takeoff software for rehab estimating or not!?! Please explain.) Has anyone used any of these programs, or have any opinions about them?
To answer your question about Takeoff software, that is only useful if you have architectural drawings that you can upload to the takeoff software to measure all of your quantities.
For the average flip, I would doubt you are having an architect draw up plans of the entire house, so if you don't have drawings you won't be able to use an Takeoff software.
If you are doing new construction projects or extensive rehabs where you are adding square footage and have architectural drawings that you can use then that would be the only time Takeoff software would be applicable.
Even so, measuring materials for houses that are only 1,500 to 3,000 sf is not overly difficult.
Takeoff software is more useful for large commercial construction projects where you have hundreds of thousands of square feet of flooring, hundreds of different material items that need to be quantified and counted.
I spent 7 years as a commercial construction estimator so I have spent thousands of hours using takeoff software, but I just don't think it would be very helpful for the average flip project.
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Sorry to disappoint, but speaking as a long-time GC, you'll just have to develop your own to be competitive. There really are no shortcuts. Every GCs company is different, every customer is different, every town is different.....
Quote from @David Robertson:
Quote from @Robert Walden:
(I'm not sure if there's a difference between the usefulness of Takeoff software for rehab estimating or not!?! Please explain.) Has anyone used any of these programs, or have any opinions about them?
To answer your question about Takeoff software, that is only useful if you have architectural drawings that you can upload to the takeoff software to measure all of your quantities.
For the average flip, I would doubt you are having an architect draw up plans of the entire house, so if you don't have drawings you won't be able to use an Takeoff software.
If you are doing new construction projects or extensive rehabs where you are adding square footage and have architectural drawings that you can use then that would be the only time Takeoff software would be applicable.
Even so, measuring materials for houses that are only 1,500 to 3,000 sf is not overly difficult.
Takeoff software is more useful for large commercial construction projects where you have hundreds of thousands of square feet of flooring, hundreds of different material items that need to be quantified and counted.
I spent 7 years as a commercial construction estimator so I have spent thousands of hours using takeoff software, but I just don't think it would be very helpful for the average flip project.
That's what I wanted to know. Thanks for your expert feedback, David! :-)
Quote from @David Robertson:
Hi Robert,
It looks like you've done extensive research on the current estimating software offerings available. Here's my thoughts and feedback on your needs and lists.
a.) has a regional pricing database that can be updated with local prices,
Yes, the estimating tool should provide you with estimate templates that include price ranges to help get you started, but ultimately you should be creating your own pricing database with your own prices that fit your specific market and materials you will be using on your projects. Now that you have a couple of flips under you belt, you should have a good understanding of what stuff costs and be creating your own database.
b.) is technically sophisticated, customizable, and flexible,
The great thing about spreadsheets is that they are completely customizable and flexible, so that is why many investors recommend spreadsheets to handle the estimating process. The estimating software should be as customizable as a spreadsheet. You should be able to customize EVERTYTHING (categories, repair items, prices, descriptions) add/delete rows, easily drag-and-drop rows to re-order to tailor your estimate exactly how you need it.
c.) is affordable for a 2-person operation (around the $100./mo. price range or less),
That's a reasonable budget, but can certainly find options for cheaper
d.) is scalable, for when my business grows, and
If you want to scale your business and grow your team, the estimating software should allow you to add multiple team members to your software account so your entire team can create estimates and collaborate on projects.
e.) OPTIONAL - has a suite of related features (such as soft money lenders, list of foreclosures and vacant properties, a CRM, automated marketing, etc.).
Some of the companies you listed like BuilderTrend, Xactimate, Houzz, Clear Estimates, Simsol, Autodesk are softwares for contractors/remodeling companies and not built specifically for the house flipping/rehabbing niche, so they will not have all or any of the related lead management, deal analysis, functionality you are looking for.
Other Considerations
(f) Ability to Save Templates for Future Projects
Once you get done customizing your estimate you should be able to save your estimate as a template that you can re-use on future projects.(h) Ability to Create Estimate Reports
All of the data that you enter into your estimate should be used to generate a professional, printer friendly shareable estimate report that you can use to share the SOW and budget with your business partners and lenders.
(i) Ability to create a Scope of Work document for your Contractors
All of your estimate data can also be used to generate a Scope of Work document telling your contractors exactly what scope they need to include in their bid proposal.
(j) Ability to select project materials and create Material List Report
You should be able to assign material SKUs directly to your estimate items which will be used to generate a project material list that you can use to shop for materials.
(k) Ability to Track Contractor Bids
Once you receive bids from your Contractors you should be able to track your Contractor bids directly in the estimating tool so you can evaluate the best bid and use their number in your estimate.
(l) Ability to Track Your Actual Expenses Against Your Budget
Once you get the property under contract you should be able to compare your actual expenses to your initial estimate so you can manage your budget and forecast profitability before it's too late.
Tool Feedback
Here's some feedback on the tools you researched.
1. Rehab Estimator Calculator (Bigger Pockets tool) - FREE
- Doesn't provide pricing, not detailed enough, not flexible enough, can't save templates, can't assign materials, can't create SOW...not really a software platform that is scalable.
2. Houzz Pro Estimating Software - $99,/mo.
- Built for contractors and remodelers, so won't have the niche flip/rehabbing tools.
3. Buildertrend - $99./mo.
- Built for contractors and remodelers, so won't have the niche flip/rehabbing tools or template. Also, it's way more expensive than $99/month, its probably more like $250 to $500/month
4. Xactimate Remodel (Verisk) - $50./mo. for Studio version (first year only)- Built for insurance companies/contractors and remodelers, so won't have the niche flip/rehabbing tools or templates.
5. FlipSter System - $97./mo.
- Built for flipping niche, but not flexible enough, can't save templates, can't assign materials, can't create SOW. I also generally don't like their marketing tactics upselling you on guru real estate programs.
6. REI/kit - $ 64./mo. for Marketing Starter; $104./mo. for Markting Success (includes more/better leads)
- Built for flipping niche and could be a good option, but I'm not sure how flexible it is or whether you can assign materials, create SOW, etc. Also doesn't have project management tools for managing or tracking on-going projects.7. Simsol Estimating Software - $100./mo.
- Never heard of this, website is currently down so can't research.
8. Clear Estimates - $59./mo.
- Built for insurance companies/contractors and remodelers, so won't have the niche flip/rehabbing tools or templates.
9. Autodesk Takeoff - $104./mo. to $155./mo.- Appears to be built for large commercial general contractors that utilizes CAD drawings and 3D CAD files to perform takeoffs. This type of software would not be useful for a flip project that won't have 3D CAD drawings.
Wow! What an awesome analysis of my research! Thank-you so much for all the time you took to respond!! I totally agree with the additional requirements you mention that should be considered; most notably being the ability to produce a SOW, and a materials list. (They seem like such basic features that I assumed, maybe incorrectly, that they'd all have that capability!?!) I'm curious why you didn't include Flipper Force as a possible alternative? Didn't want to seem biased, I suspect!?! LoL To be honest, I looked at it too, and strongly considered it. I just didn't include it because my list was getting too long, and I had to cut it off somewhere. Plus, I was focused on products that have more "automated" features (like floorplans created from a mobile phone video and a bluetooth tape measuring tool, or creating a materials list for designated upgrades according to code - e.g., calculating the number of electrical outlets by the length of a wall, etc.). Working by myself has become totally overwhelming and time consuming! And, I'm trying to find ways to automate many of my processes until I can afford to hire some help. I've been trying to identify products that specifically meet the niche class of estimating tools designed for the needs of flippers. Unfortunately, the ones I've found have the limitations you cite, and/or are for GCs and wholesalers. Do you have one or two favorite estimating software tools you recommend that meet these criteria for flippers? And, how does Flipper Force fare against the requirements we've discussed?
Quote from @Bruce Woodruff:
Sorry to disappoint, but speaking as a long-time GC, you'll just have to develop your own to be competitive. There really are no shortcuts. Every GCs company is different, every customer is different, every town is different.....
I appreciate your perspective, Bruce. Your points are well taken. The problem for me (and I suspect for many other investors) is that my current database of materials (which took me agonizing weeks of scrutinizing and downloading items, and their prices, SKUs, descriptions and images) is hundreds of rows long in my master spreadsheet, and isn't automated, other than the total at the end. I want something more like an automated database than a spreadsheet that enables me to do quick drive-by estimates so I can deliver an offer "subject to", and then expand it when I get back to the office into a more thorough analysis, should I get a response from the owner. Any other suggestions as to how I might address this dilemma?
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Quote from @Robert Walden:
Any other suggestions as to how I might address this dilemma?
Sorry but no.....It takes a while to develop the inner sense that allows you to drive by and put an immediate price on a rehab...it just takes time and repetitions......
Quote from @Robert Walden:
Quote from @David Robertson:
Quote from @Robert Walden:
(I'm not sure if there's a difference between the usefulness of Takeoff software for rehab estimating or not!?! Please explain.) Has anyone used any of these programs, or have any opinions about them?
To answer your question about Takeoff software, that is only useful if you have architectural drawings that you can upload to the takeoff software to measure all of your quantities.
For the average flip, I would doubt you are having an architect draw up plans of the entire house, so if you don't have drawings you won't be able to use an Takeoff software.
If you are doing new construction projects or extensive rehabs where you are adding square footage and have architectural drawings that you can use then that would be the only time Takeoff software would be applicable.
Even so, measuring materials for houses that are only 1,500 to 3,000 sf is not overly difficult.
Takeoff software is more useful for large commercial construction projects where you have hundreds of thousands of square feet of flooring, hundreds of different material items that need to be quantified and counted.
I spent 7 years as a commercial construction estimator so I have spent thousands of hours using takeoff software, but I just don't think it would be very helpful for the average flip project.
That's what I wanted to know. Thanks for your expert feedback, David! :-)
Have you checked out www.houseflippingspreadsheet.com?
Quote from @Robert Walden:
Have you checked out www.houseflippingspreadsheet.com?
Thanks for the suggestion, Scott! Yes, I've heard of the "House Flipping Spreadsheet" software. I've even downloaded their Lite version. But, I haven't had a chance to use it yet. In your opinion, is their Free version any better than Bigger Pockets' "Repair Estimator" tool? We're a small 2-person company. What are HFS' best strengths and advantages? And, what version (free or paid) would you suggest might best suit our needs?
Quote from @Robert Walden:
Quote from @Bruce Woodruff:
Sorry to disappoint, but speaking as a long-time GC, you'll just have to develop your own to be competitive. There really are no shortcuts. Every GCs company is different, every customer is different, every town is different.....
I appreciate your perspective, Bruce. Your points are well taken. The problem for me (and I suspect for many other investors) is that my current database of materials (which took me agonizing weeks of scrutinizing and downloading items, and their prices, SKUs, descriptions and images) is hundreds of rows long in my master spreadsheet, and isn't automated, other than the total at the end. I want something more like an automated database than a spreadsheet that enables me to do quick drive-by estimates so I can deliver an offer "subject to", and then expand it when I get back to the office into a more thorough analysis, should I get a response from the owner. Any other suggestions as to how I might address this dilemma?
Pre-Purchase?
You are doing TOO MUCH analysis IMO. Why would you be worried about exact SKU prices and other things? So what if it is a few days or a few weeks out of date. It WILL be at least a few weeks out of date by the time you close at best. I found myself falling down this rabbit hole as well, but the best thing IMO to do is to just spend more time trying to find better deals or starting with a wider margin. Then if you are 10% off on estimate (which even with perfect lumber prices and everything you CAN know, how many times has a flip been perfect?) you are still winning.
TLDR: Find the one you would use the most and know that you are still in the end predicting things, so it wont be perfect.
Quote from @Robert Walden:I appreciate your perspective, Bruce. Your points are well taken. The problem for me (and I suspect for many other investors) is that my current database of materials (which took me agonizing weeks of scrutinizing and downloading items, and their prices, SKUs, descriptions and images) is hundreds of rows long in my master spreadsheet, and isn't automated, other than the total at the end. I want something more like an automated database than a spreadsheet that enables me to do quick drive-by estimates so I can deliver an offer "subject to", and then expand it when I get back to the office into a more thorough analysis, should I get a response from the owner. Any other suggestions as to how I might address this dilemma?
Quote from @Jarrod Kohl:
Pre-Purchase?You are doing TOO MUCH analysis IMO. Why would you be worried about exact SKU prices and other things? So what if it is a few days or a few weeks out of date. It WILL be at least a few weeks out of date by the time you close at best. I found myself falling down this rabbit hole as well, but the best thing IMO to do is to just spend more time trying to find better deals or starting with a wider margin. Then if you are 10% off on estimate (which even with perfect lumber prices and everything you CAN know, how many times has a flip been perfect?) you are still winning.
TLDR: Find the one you would use the most and know that you are still in the end predicting things, so it wont be perfect.
I agree with @Jarrod, you don't need to have every material picked with the exact SKU and exact price, but you need to know a reasonable budget range of what you can buy materials for.
For example, I would recommend walking through Lowes and Home Depot (or their websites) and look at finishes materials and fixtures that you will consider using in your rehab projects. This will help you get a better idea of what tile, hardwood, carpet, plumbing fixtures and light fixtures costs for your rehabs.
Once you find the materials you want to use in your rehabs, put the material pricing into your Estimating Tool or spreadsheet that can be used for future reference.
For example, let's say you go on Home Depot's website and you see they are selling crappy builder grade vanities for $250 to $500, moderate grade vanities for $500 to $1,000, and luxury grade vanities for $1,000 to $2,000+. Pick out the vanity price range that you feel is most appropriate for the the level of rehab you are doing and ARV in your market.
If you are doing moderate grade rehabs, I would likely put a $750 budget in my spreadsheet and use that as an "allowance" that I know will provide me with enough budget to buy the type of vanity I'm looking for.
Once I get the property under contract I will know my budget is $750 for the vanity and I will try to shop around and find a vanity for $500 and try to save $250.