A foreclosure cleanup company may obtain requests from real estate agents, banks, and larger property preservation companies to submit bids for various services. For example, as the owner of a foreclosure cleanup business, you may need to bid on lawn care, tree trimming, gutter cleaning, trash removal, drywall repair, interior cleaning, carpet and vinyl, and more.
Making a proper offer can be a bit tricky if you don’t take everything into account. Below is a quick and dirty breakdown of a recently completed real estate cleanup and repair quote so you can see how the offer was made.
offer details
Below are the miscellaneous items the managing realtor wanted this foreclosure cleanup company to bid on:
Miscellaneous items
–Complete interior cleaning of 3966 m2. ft home: including all rooms, kitchen counters/cabinets/sinks, all appliances (refrigerator, oven, vent hood, dishwasher, etc.), ceiling fans, mirrors, and windows (upper and lower level, interior and exterior ) ; Sweep basement and garage areas with broom.
–Change the keys on the doors (front, back and two basement doors).
–Install new garage remotes for 2 garage doors near rear; repair or replace the inoperable garage door remote control held by the real estate agent.
–Fix broken screen door at rear kitchen entrance.
–Debris Removal: Remove debris, furniture, exercise equipment, bicycles, miscellaneous. household items and dispose of them (except lawn and garden equipment), including clearly identified basement items. (Note: Realtor will put yellow sticky notes on items and furniture that MUST REMAIN.)
–Replace all missing or broken bulbs.
–Caulking tub as needed.
Total Miscellaneous Items Above: $2,865
For the items above, this real estate company bid $2,865.
The bid allocation was as follows: $1,050 for trash and dumping (large and heavy items); $525 for electrical and maintenance duties; $675 cleaning fee; $225 for the appliance surcharge (fridge was full of old, rotten food); $300 window surcharge (3 story home, interior and exterior, tall windows); $90 equipment rental, pickup and delivery.
Please note that the company’s profits have been incorporated into the figures above, and we did NOT provide a breakdown of the offer to the real estate agent other than the paint clearance in case they wanted to opt out of the painting. (See paint breakdown part below.)
Paint Lot Estimate
–“Touch up” painting entire interior of home (APPROX. 2644 SF MAIN AREA FINISHED), including water stains on ceiling in living room area by kitchen. The estimate also includes touch-up painting of square footage not included in the primary finished area, specifically the “hallway areas” leading to the basement and/or garage. (Does NOT include any painting inside the basement and garage). 2644 sq. ft x $1.25 m2 ft
Total for Painting: $3,305
Estimated subtotal: $6,170 (less $50 discount in connection with realtor’s affiliation with a local multiple listing service)
FINAL Estimated Total: $6,120.00
Notes included with the quote:
–Payment upon completion as indicated in the formal terms.
–Owner/Realtor will provide and/or sponsor contractor for paint, locks, screens, light bulbs, garage door wall panels and openers. According to the request, the quote is for labor only. However, the contractor will provide cleaning and debris removal supplies.
–After viewing, no exterior debris removal or landscaping required.
–This Estimate/Offer is valid for 7 (Seven) days from the date of the Estimate/Offer. If the Customer accepts the Estimate/Offer, sign and return according to the Instructions attached to the Contract.
–Days to Complete: 2 Days (Two Days)
EstimateMachine?
In the early stages of your foreclosure cleanup business, as explained in detail in How to Start a Foreclosure Cleanup Business, you’ll be an estimating machine, but the more estimates you come up with, the better you’ll get on real estate prices and deals. estate. and foreclosure cleanup jobs.
Prices and offers
Various internal markup percentages and various soft and hard pricing factors influenced this estimate.
For example, geographic distance (home is 50 miles from the office’s base of operations); rental property that is put back on the market; the setting was a real estate agency dealing with eviction, repairs, and outsourcing of work to the homeowner; elegant subdivision; spacious three level executive type house; various heavy items in debris (exercise equipment, bikes, tools, etc.); and other relevant factors.
A Word About Paint Estimates
Please note that this estimate requires “touch up” paint. Be careful when a customer asks for touch-up paint, because it’s often easier to just paint everything. But in a real touch-up job, you shouldn’t have to touch window frames, baseboards, cabinet interiors, etc.
Note: You can find out the square footage of a home (to include in your estimate portion of your paint bid) by visiting the county’s property search website.
Good luck with your estimates in your foreclosure cleanup business! And remember, the more estimates you submit, the more comfortable you’ll feel writing them down, and ultimately the more business you’ll get.