Why do repair costs matter to the middleman?

[Antonio Bodley]

Why does the middle man have to have accurate repair estimates? I'm just curious as to why the person assigning the property to an end buyer have to have accurate repair estimates. I look at it like this. Repair costs on a home can be as expensive or less expensive as the buyer wants it to be. The buyer is the one who gets to decide whether or not they want to pay for expensive over the top flooring and counter tops in the home as opposed to something nice,simple, and cheaper. I may give estimates based on what I would spend to remodel a home which may be totally different from what the end buyer would spend on repairs. For example, my repair estimates may be $15k compared to the end buyer's repair estimates of $5k. To me it comes down to the type of materials the buyer wants to spend to fix up the house. I'm not talking the major repairs because that is something that have to be taken care of regardless how much it costs to repair. But with the other repairs the buyer gets to choose how they want to redesign the home and at what cost is up to them. Just my opinion how I see it.

[Randy F.]

Not only do you want to know what your investors want, you need to know your market. Its easy to complicate it when youre dealing with hypotheticals, but every house has a sweet spot. If the comps all have granite, estimate it with granite. You want to bring it up to, and a bit above, the comps.
If you have a 3/1, and 3/2s are where its at for end buyers, and the floor plan lends itself to adding a bath and the numbers work, estimate a bath. If you are selling to a rehabber/ flipper, think like one.
If youre selling to a landlord, think like one. Look at mechanical, roofs, appliances etc. to reduce potential for reoccuring repair & maintenance issues and making move-in ready.
If you provide a decent analysis of the property which peaks his interest, and he buys and finds you were spot on, whose properties is he gonna look at in the future?