Pricing yourself into poverty - REO Property Preservation Forum
 
LinkBack Thread Tools Display Modes
post #1 of 4 (permalink) Old 06-19-2016, 05:03 PM Thread Starter
P3+
Motivator
 
P3+'s Avatar
 
Join Date: Aug 2012
Posts: 267
Thanks: 41
Thanked 166 Times in 79 Posts
Pricing yourself into poverty

With the new construction single family market booming right now, I thought I'd share what we are paying for some skills that could easily crossover. I don't know how many of you are strictly PnP/REO, but being as diverse as possible certainly has it's upside. Eb and Flow with the trends.
Now let's keep in mind, this isn't GREAT pricing, heck it's not even GOOD pricing, but it's certainly a livable price. I just don't see the point in chasing the foreclosure world with there being as many sharks in the water as there are. There are just much easier ways to make as much if not more money. Oh and did I mention....we DON'T ever ask for pictures!

Keep in mind these are prices from right in the upper midwest, and I guarantee they are legit prices for my current state.

Sales Clean: .28-.32 cents a sq/ft Avg house size of 2k =$560
(given my experience in REO in the past, I'd do new construction cleans over REO any day of the week)

Scrap Out (debris removal): T&M typically. We have been averaging paying about $875 per house for a scrap out. This would be after flooring, so scrapping out the garage/yard and hauling debris off (typically less than 20yds). If dumpster on site we pay labor cost of $25/hr per man hour.

Window Washing (yes this is paid separate to sales clean): $85/ranch $135/2story

Power Washing (drives/stoops/walks/front facade): $225/flat

Pre-Close T/U (Touch Up) Clean: $50, usually only involves vacuuming to leave the carpets nicely lined

Interior Painting/Stain: $2.30-2.65sq/ft +Extras (Trim One color, Walls one color, closets/ceilings white)


I would suggest to some that are in a thriving new construction market to put together some literature with some sample pricing and hit up every builder you can to drum up some paid upon completion work. The more you can do, the better valued you can be to that builder.
P3+ is offline  
The Following 3 Users Say Thank You to P3+ For This Useful Post:
mtmtnman (06-20-2016), Ohnojim (06-19-2016), safeguard dropout (06-19-2016)
Sponsored Links
Advertisement
 
post #2 of 4 (permalink) Old 06-19-2016, 11:10 PM
How I wanna be a PP Pro
 
Wannabe's Avatar
 
Join Date: Oct 2012
Location: USA
Posts: 1,103
Thanks: 232
Thanked 1,277 Times in 562 Posts
Spot on.

We've been having a tussle with an adjuster on painting. Who would ever do Xactimate rates (estimating software for insurance industry) at $.74/SF?

We see the GC's estimates on these claims and only the desperate would work at the low rates that these programs offer. Insurance work is becoming similar to P&P.
Attached Thumbnails
Click image for larger version

Name:	image.jpg
Views:	69
Size:	180.9 KB
ID:	4170  

Wannabe is offline  
The Following User Says Thank You to Wannabe For This Useful Post:
mtmtnman (06-20-2016)
post #3 of 4 (permalink) Old 06-20-2016, 06:48 AM
Super Moderator
 
GTX63's Avatar
 
Join Date: Apr 2012
Location: Your House Soon...Soon
Posts: 3,186
Thanks: 676
Thanked 2,249 Times in 1,094 Posts
We have realtors that are calling for cleanouts after the sellers move out. These are usually mid level properties or better that due to relocating, health, near closing, or they just don't want to mess with it, they are willing to pay someone to get rid of their accumulation. Look professional, act professional and own professional equipment=professional rates.
GTX63 is offline  
The Following 2 Users Say Thank You to GTX63 For This Useful Post:
JoeInPI (06-20-2016), mtmtnman (06-20-2016)
Sponsored Links
Advertisement
 
post #4 of 4 (permalink) Old 06-20-2016, 02:27 PM
Senior Member
 
JoeInPI's Avatar
 
Join Date: Dec 2014
Posts: 342
Thanks: 499
Thanked 201 Times in 114 Posts
We have seen a lot of those realtor "post-move" cleans also, and have been very successful with lawn cleanups and minor landscape touch-up as well. You have to think out of the box, and you will find the money for sure. Realtors want to see these places too- they will pay for a few lawn cuts through the season if it means a commission.

Quote:
Originally Posted by GTX63 View Post
If not satisfied please returned the unused portion of the product and we'll return the unused portion of your money.
JoeInPI is offline  
The Following User Says Thank You to JoeInPI For This Useful Post:
mtmtnman (06-20-2016)
Reply

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the REO Property Preservation Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in










Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode



Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome