Pricing yourself into poverty - REO Property Preservation Forum
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post #1 of 4 (permalink) Old 06-19-2016, 04:03 PM Thread Starter
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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.
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post #2 of 4 (permalink) Old 06-19-2016, 10:10 PM
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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.
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post #3 of 4 (permalink) Old 06-20-2016, 05:48 AM
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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.
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post #4 of 4 (permalink) Old 06-20-2016, 01:27 PM
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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.

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.
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