I’ve got a pretty simple question. I just started my market research and have found a house that is vacant but for sale. It is not kept well at all, they aren’t using a realtor, I mean the house looks terrible, all of these signs in my opinion mean SELL ME ASAP. I want to take a look at it with my dad to see about how many repairs need to be made.
How do you estimate the cost of repairs before putting in an offer?
You can put in a guesstimate offer and make it subject to inspection. Then get a contractor to go through it with you and give you an estimate. You can also bring the contractor through before you have an offer in if the seller will let you.
if at all possible, have the owner present when you inspect. as he sees you and the contractor pointing and whispering and taking notes and photos of the cracks in the walls, etc, he will better understand your low offer price. He still won’t like it, but at least he will have some perspective.
Do your home work and take notes of what you see for repairs too.
Marshall & Swift sells a good estimator’s guide for remodel/rehab for about $80. If you do an internet search you’ll find a lot of other ones out there too.
Hope this helps.
Incredible piece of advice. Works like a charm for me!