Estimate Before It’s Too Late


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Most real estate investors start off making the same mistakes. They underestimate or overestimate the price of repairs to the investment home they are looking at. They also take too long making estimates. These can cost any investor lots of wasted time and money as well as keep them from landing the properties they are truly interested in.

Under calculating the rehab costs or time can cost the real estate investor lots of money. When he makes his offers, he may make them too high leaving his business very little wiggle room for extra costs, mistakes, and man hours. All it takes is a couple of miscuts, and the materials budget is thrown out the window.

Over calculating the rehab costs hurts the real estate investor too. By making the offer on the home too low, he leaves himself out of the running for it. If he should get the house, that is great, but normally a low bidding investor is disqualified or considered as an afterthought.

To prevent overbidding or underestimating offers, real estate investors need a speedy and efficient way of making accurate repair estimates. Most franchises will provide a system or software that will help you to make estimates quickly. If you haven’t had the chance to join one of the notable real estate franchises, like Homevestors, you can still create a system to help you make quick, accurate repair estimates.

Start by creating a spreadsheet either in a notebook or on a spreadsheet program, such as Excel. This spreadsheet should go with you to every job. On it should be the approximate cost per unit for every job you may have to handle for a renovation. Give everything a price, including the labor for the job. This is actually easier than you would think. Go to the local hardware store or to the online hardware store, and find the average price for most of the supplies used on a job. Get an average per repair per unit. (i.e. square, square foot, linear foot, etc.) Remember that your area and the types of materials used are going to greatly affect the overall price.

Remember to round up uneven estimate figures by large increments like $500. This helps to cover taxes, price fluctuations, etc.

Getting accurate quick offers onto the table will help to increase your real estate investments by tenfold. For more ideas and information on real estate investments or real estate franchises, visit us at Homevestorsfranchise.com.

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