Is My Contractor Pricing Too High?

Question

Hello everyone,

Newer to house flipping and also just moved to Charleston, South Carolina. I've got a 2/1 ~900sq ft house and it does need a full rehab including new roof, all new drywall and flooring, adding plumbing for washer dryer and dishwasher, getting electrical up to code, full kitchen and bathroom remodel, etc.

With this in mind, and living in the Southeast (I'm originally from the Midwest), my general contractor is estimating ~90k in rehab. This is about $100/sq. ft. Is this reasonable for the area or is he pricing this way too much? Even for a heavy rehab I was expecting closer to $65/sq ft totaling a 60k rehab. so this is roughly $30k more than what I was expecting.

Would appreciate a fellow investor familiar with the region's opinion on pricing. (Maybe I'm just too used to cheaper midwest pricing)

Patrick Roberts · Answer

Hate to tell you this, but that's probably about right or maybe even a little bit on the low side. This will be highly dependent on the area as well (downtown vs Summerville, etc). If this is downtown, it will likely be much more expensive because you will have to deal with the BAR and possibly the BZA.

Also, are you able to add any sqft and a bathroom to the house in the process? This would likely add to the total cost, but you will get much more bang for the buck.

Stuart Udis · Answer

I would lean into the advice Patrick shared as a Charleston resident. Having visited the city numerous times, one of the takeaways I observed were strong preservation protocols. This often adds additional costs. From what observed there were areas that had stricter requirements than others so it's important to be mindful, particularly in a city like Charleston.

David Peschio · Answer

As others have said, that may be a reasonable quote.  I would always get multiple estimates on large jobs for a point of reference.  Also, a clear understanding on the contractors timeline for completion and how they want payments.  Lots will start and stall out at the end while they start another job.

Cassidy Burns · Answer

Right now we are seeing $110/SQ FT for Rehab, $135/SQ FT New Construction AT COST (we own the construction company.)

So I think that's very reasonable. We are in the Northern and Central VA area.

Caleb Brown · Answer

I would get another estimate. I think 90K is a tad high. In my area that rehab would be 60-80K depending on finishes and specifics.

Jules Aton · Answer

Hi, did you get another estimate? That is the best way I can think to decide if it is a reasonable price for the area and job. In my recent experience everything now costs 2xs what it used to or what I expect so there's that.

Is My Contractor Pricing Too High?

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