How accurate does a repair estimate need to be on a wholesale deal?

Question

For wholesalers, I’m curious how detailed the repair estimate really needs to be before sending a deal to buyers. A rough number might be enough to get interest, but if rehab is off by $20k–$30k, buyers either retrade or stop trusting your deals.

So where’s the line? Do you give buyers a broad repair range, a conservative estimate, contractor input, or just let them run their own numbers?

Rhema Odika · Answer

usually prefer conservative repair estimates with a buffer. It’s better to underpromise than overpromise. Interested to see what experienced wholesalers here recommend

Jason Roberts · Answer

If your wholesaling and send out lowball rehab numbers you will burn bridges quickly.  The guys that were completely honest with me about the situation always got a return call.  I think it's critical that you have solid numbers.

Travis Goodwin · Answer

I've found it's better to be conservative than overly optimistic. Buyers are going to run their own numbers anyway, but if your estimates are consistently realistic, your credibility grows over time. I'd rather lose a deal because I overestimated repairs than because I underestimated them. How are you currently coming up with your repair numbers?