what is the best way to estimate a rehab price?

5 Replies

hi

I found a home in Newark that I am trying to get under contract I made a mistake of not bringing a contractor whit me (note that the seller told me it only need 2.500$ worth of work!) but it look like to me it needed a lot more work about 20.000$-30.000$

My question is does Anyone have a contractor that they would like to share or recommend one I would really appreciate it thank you.

Hey Walter...

In my experience the owner always underestimates the cost of repairing a home.

Yeah i can get a two ton heat pump system for 1400 cash... " in the owners mind"

However there is a lot more to adding a heat pump system and removing the old one, especially if your not doing it yourself, which the owner is thinking he would do. Its an easy 6k bill now a days.

If you dont have the experience and know how its very difficult to estimate repairs costs.

However if you do some serious due diligence and look stuff up on the internet i believe you can get close to the proper repair price.

If you have a friend or family member that does the work by all means abuse them and get their opinions.

Here is a trick you might try.

Call sears for your hvac needs (they use subcontractors for all thier work ) their price will be hands down about 50% more than a normal contractor will do the work for. It will be about 75% more than what you can do it for yourself.

Repeat that for windows, roof, flooring, and any repairs in your home.

You will be very close to the prices doing it that way

hope that helps

There is no replacement for experience but there are some things you can do. As suggested above, call around and get quotes, have a contractor walk the property with you, go to the home improvement stores and see what things cost, etc. Probablty the best way to get started on estimating costs is by reading and doing. I have been reading The Book on Estimating Rehab Costs by J. Scott and I am learning a ton. The details covered by J are awesome and there are a lot of things that I would never think of as a beginner.

@Walter Thompson

As Brian said Two Great reads, I bought both J. Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbook

Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers. Speak to the wholesalers ask them what they budget for various repairs make a list.

Good Luck

Paul

@Brian L. Account Closed

thanks for the advice i am going to get started on that and start reading that book

thanks for all the support.

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