Sorry for asking what is probably a repeated question, but I’ve heard so many opinions on repair estimates that my head is spinning. After listening to a teleclass with Robyn Thompson and Jeff Adam, I’m more convinced that what I was taught at a mini-seminar a month ago might be outdated. Opinions/theories on any general rule of thumb formulas when you’re walking through an ugly house and trying to estimate repairs so you can do the math on what to offer and can live with before trying to assign to a rehabber?
Never be sorry for asking questions. Better to ask for free than losing money. Something I found out the other day about estimating repairs. Go to your local chain lumber/hardware store and get an estimating program on CD. I have not done this yet because I’ve been busy but I am going tomorrow to get one. Hope that helps.
I agree with seagram. I recently got my first property under contract. It was a HUD f/c that I estimated repairs at $2,000. Interestingly enough, the estimation I made was from walking around the outside of the house and peeking in the windows - IOW, I never even stpeed in the house (very bad idea). After learning I was the winning bidder, I immediately got a professional inspection done. Luckily, there was no major problems, and the only real out-of-pocket repair expenses will be to install a combination microwave/vent above the range and put a missing coach light on the back porch. Everything else is minor cosmetic stuff. I then went to Lowe’s web site, and got actual costs for the items. All told, I will be paying about $600 for repairs/clean-up, saving myself $1,400 from my initial estimate. But, again, I got lucky that it wasn’t missing the HVAC system, or something else major.
That will be the last time I submit an offer without inspecting the inside with or without someone more knowledeable than myself.