How much to pay contractor to assess fixer cost when viewing prop

Question

Hi everyone! I am interested in a property that needs fixing up and would like to bring a contractor with me when I go see the property. First of all, how do I find a contractor who would be willing to go with me and see the property when my offer to purchase the property depends on whether the costs are viable and secondly, how much do I pay him for his time and trouble?

Thank you!

Tony Gunter · Answer

@Sandra K Shirah

So you expect a GC to go give you a detailed quote (you want to bank on the numbers, right) for a property you MIGHT buy? A GC is covering al the trades in their pricing. As such, it is not a small amount of work to do for something you don’t even own, and may never own. Quote and an estimate is note the same thing.

Think about this proposition from the GC’s POV. Time is everyone’s most valuable asset. Is a GC going to be motivated to work for free with a tight wad investor that doesn’t even own the property, or go put up that mega deck for the couple on the golf course?

I just saying consider another POV of the situation.

Wesley Davis · Answer

@Diane Tycangco If you tell a builder that you don't own the property, most, if not all, of the good GCs won't even see you.  They aren't doing that to be disrespectful or anything.  Good GCs do not have a lot of time.  So when someone asks them for a quote, when the person asking does not own the property, it's considered a huge waste of time for a GC.  I spent so much time giving investors and non property owners quotes that I now charge $100.00 for a quote if you don't own the property (investor or not, and I still think that is cheap).  It just tells me that you're serious about buying it and not wasting my time.  Keep in mind, quotes can take anywhere from 3-8 hours of work and time (or longer) depending on how detailed the quote needs to be.   If someone is just wanting me to stop by and give them a rough idea (a dollar amount off of the top of my head) I will usually just do a hand shake and call it good, unless the person abuses it and never gives me work.  GCs do a lot of work behind the scenes that customers do not see.

If you would like some help, send me some pictures.  I can at least help you with an idea of what will need to be done.  I'm in North Carolina so the pricing of things will be way different.

Bjorn Ahlblad · Answer

@Diane Tycangco if what you want is an inspection get that. A licensed inspector will give you a rundown on what is going on with all aspects of the building and a written report. A contractor will be focused on what  can be rehabbed. I would not pay a contractor anything he/she is giving you a quote after all. Get more than one quote or you will have no idea of what a reasonable price is for your rehab.

Bill Buzzell · Answer

If I had someone that had a bunch of properties knowing and understanding that they are only in the shopping phase, I think it would be a good service to offer as a type of 'pre-inspection estimate' as long as there were a reasonable small fee to cover the expenses. Maybe $40 or $50 bucks for a 'pre-inspection' plus a 'pre-quote' from a contractor.

What you want to know is which properties are worth pursuing and need a real inspection from a licensed inspector when you are only shopping for deals. They would find things that I might not during a real inspection, of coarse.

Why not? I need to give estimates, you need to get estimates. Find a good middle ground and I believe it's a win win.

I think as long as you are up front with a contracor that you are shopping, but serious shopping that will land him/her serious work at the end the would be glad to do it for $50 bucks all day, and probably less.

Casey Walker · Answer

I am a general contractor in PA and the normal here is free estimates.

Just be honest, call some builders and tell them your trying to buy a property and want a price for the needed rehab.  For some builders that will be a turnoff but some builders will still be willing to help you out.    I would not expect you to pay the builder anything for an estimate.   But dont waste the builders time looking at house after house and never buying them or not giving him any of the work.  The builder probably has kids at home he could be spending time with.

Most builders make $100 per hr so i would not tip him a 20 and think that will make him happy.  haha

Diane Tycangco · Answer

Thanks everyone for the input.  I was thinking maybe I am putting the cart before the horse?  What about just using the inspection report after my offer is accepted?  So my actually buying the property depends on the result of the inspection and the rehab cost.  The problem is the house's selling point is only its bones.  There are no pictures of the interior  online.  I am afraid it might be a big job.

Kris L. · Answer

I think if you own the property, or have it under contract free would be expected, but if not, $100 might be a good indication that you aren’t just a waste of time because many times, you won’t get the property so have no work to give the contractor.

Sandra K Shirah · Answer

@Tony Gunter good point, but I still respectfully disagree. I consider estimates or bids part of "doing business," just like when I offer my professional services - I don't charge investors for BPO's.  If based on my willingness to provide a report later generates a listing of that house or another belonging to the investor, I consider the time I spend researching and completing the BPO well worth it. If it doesn't result in later compensation, that's the risk I take as a service provider.

Tony Gunter · Answer

@Diane Tycangco

None of the other respondents has even mentioned that you don’t even own the property. The biggest Red Flag for a contractor.

Diane Tycangco · Answer

Thank you for the swift reply.  How much would small be? $50? $100?  The property is in Sacramento CA.

How much to pay contractor to assess fixer cost when viewing prop

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