203K Loan - Just Received Contractor Estimate - What to do?

[Rob Randle]

I just received an estimate from a contractor for a 203k Loan.  Property is a 2100 square foot duplex that needs an entire rehab.  Gut everything, mold issues, stolen copper, and basically nothing salvageable.  However, the structure of the duplex is sound.  The estimated price was around $85 dollars per square foot totaling $175,000.  I was figuring around $100k and would be willing to put an offer in if it was a bit higher than that. This contractor does a decent amount of 203k loans and was recommended by my lender.  He mentioned that he is very busy this time of year and my thoughts are that he is charging a premium because of how busy he is but it could also require that much work.

Now I have a decision to just let it go or get another estimate.  How easy is it for contractors to get acclimated to the 203k loan process?  I have some contractors in my back pocket that I am friendly with but I they have not been through this process before.  Does anyone have experience with contractors who haven't gone through the 203k loan process before?