Repair cost breakdown?

Question

When marketing your wholesale deals to your buyers do you include your own analysis breakdown of how you came up with the repair cost?  We are debating whether or not to include that since it is only our opinion of the repairs.

Karen Barber · Answer

I like Statement of Works (SOW), what it is an excel spreadsheet that I can alter, it has living room, kitchen, dining, bedroom 1, 2, 3, bath 1, 2 etc.  In each room there is a row that has flooring, paint, tile work, bathroom lists fixture & kitchen has added lines.  Even though it is an approximate dollar amount, it's easy to read...it doesn't go into alot of detail like doorknobs, outlet covers etc., however, it is a easy reference material to show people when the are asking questions, for financing, what ever you might need.

Hope this helps.

Andrea Tapp · Answer

@Dev Horn and @Alex Franks very valuable informtion.  Thank you so much.  I will include a high level summary to my cash buyers and have a detailed sheet available to them as well upon their request.  I really appreciate your feedback as cash buyers!

Alex Franks · Answer

Andrea

When marketing your wholesale deals to your buyers do you include your own analysis breakdown of how you came up with the repair cost?  We are debating whether or not to include that since it is only our opinion of the repairs.

Easy question ,with a lot different answers. So bare with my answer.

Our company buys  properties cash here in Charlotte NC. Each project is different,  but yet step one is always the same.Our first thing to do. Is Order an home  inspection on each property. I go for the company that will pick everything apart. I do not want anything missed. So now I should have good idea of rehab ( what needs to be fixed ). Our company owned  a construction crew back in the day , so I know the prices for most rehab. Not every investor will know that information ( so again providing inspection, and accurate break down on rehab. Makes the wholesale buyers decision  a lot easier. Its a number business here so providing accurate and correct number is huge. As well as showing how you came up with those numbers. I also throw in a few local comps that are in 2 mile range ( if possible) Some markets comps ,might need tom be closer to subject property.

Hope this  helps

Alex

Karen Barber · Answer

When I get to my computer I'll send you an example:)

Karen Barber · Answer

I like Statement of Works (SOW), what it is an excel spreadsheet that I can alter, it has living room, kitchen, dining, bedroom 1, 2, 3, bath 1, 2 etc.  In each room there is a row that has flooring, paint, tile work, bathroom lists fixture & kitchen has added lines.  Even though it is an approximate dollar amount, it's easy to read...it doesn't go into alot of detail like doorknobs, outlet covers etc., however, it is a easy reference material to show people when the are asking questions, for financing, what ever you might need.

Hope this helps.

LeAnn Spencer · Answer

@Karen Barber where could I get a statement of works?

Alex Franks · Answer

Andrea

Really that advice is for any one who is buying or selling real estate cash or financing.

Alex

Dev Horn · Answer

I think getting your repair cost breakdown WOULD be valuable for the cash buyer, as well as a high level summary as @Justin R. suggested above.

If I can see how you got to your estimate - see some actual line items with costs - that would help me to sanity check your numbers against my reality of all the little things people tend to overlook (cost to replace DOOR KNOBS, light fixtures. etc.) as well as the big things that could seriously impact the numbers (foundation work, roof, HVAC, major plumbing or electrical problems).  I'm not saying I expect you to have identified every door knob; what I am saying is that just having your line items to review will allow me to make a quick adjustment to what I think the REAL rehab cost might be.  So even if your cost estimate is off, it's still valuable to me as a starting point so I say YES, include it or offer it - there is value to that cost breakdown.

Andrea Tapp · Answer

@Justin R. Thankyou for your thoughts. That is great information.

Repair cost breakdown?

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