Asking a contractor to assess a property before submitting offer?

Question

This is my first house purchase so I don’t have much experience.
I just saw a house that needs a lot of repairs. However this house has a lot of potential due to its location. To know if it is worth buying it, I need to estimate how much I will have to pay to repair the house.
Is it common to pay a contractor to tour the house with me or to review the inspection report and provide me an accurate estimate of repair cost?

If so normally how much does it cost to hire him? If you know any good contractor in Bay Area, CA who is willing to do this service please recommend him to me?

Thanks a lot

If so normally how much does it cost to hire him? If you know any good contractor in Bay Area, CA who is willing to do this service please recommend him to me?

Thanks a lot

Chris Gouveia · Answer

@Rudky Martin - fellow Bay Area investor- you'll get some pretty wildly varying cost estimates from contractors on even smaller jobs, let alone what sounds like a pretty big gut. If you don't have a person/team you trust upfront, I don't know if I'd start with such a big undertaking (trusting their estimate to guide your investment purchase), but just my two cents. Best of luck!

Abel Curiel · Answer

Hello Rudky,

Congratulations on taking the first major steps towards your first investment property!

I think it is a waste of time and money to hire a contractor for an inspection/rehab estimate without submitting an offer. You should only do this after an offer is accepted. Your offer should have an inspection contingency that will allow you to back out without financial penalty.

Once you have the offer accepted, you can hire a home inspector and contractor to check things out before you go into contract.

If you have an agent and/or inspector who can recommend a contractor, you may not have to pay anything to have them come by and give you an estimate.

Best of luck to you moving forward!

Abel

Rudky Martin · Answer

Thanks Abel for your answer. However to determine a number to offer, I need to know how much I will have to spend to repair the house. If the cost to repair the house is high I will offer lower. In my area people are still bidding like crazy for some hot houses.