Home demo - REO Property Preservation Forum
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post #1 of 9 (permalink) Old 08-18-2015, 08:59 PM Thread Starter
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Home demo

Has anyone ever done a complete demo on a home. How would one bid this? any thoughts ? Concerns?
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post #2 of 9 (permalink) Old 08-18-2015, 09:26 PM
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Not sure on your location but, here in NY you have to have a mandatory $2000 abspestos survey done before you can even start. I would recommend contacting a VERY local to the property, established demo company. They have the knowledge, equipment, proper insurances, relationships with the local code enforcement and so on. Depending on the size of the property, the scale of the demo the client wants and a few other variables the job could be between 25 and 50k. And that doesn't leave much for you. Contacting the local demo companies is absolutely where I would start. I just recently got a 7k bid approval for a full house demo from one of my clients...... Haven't stopped laughing yet. Good luck my friend.
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post #3 of 9 (permalink) Old 08-18-2015, 10:15 PM
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Get approval for a bid to get a bid. Your client will piss and moan but you'll have an easier time getting an estimate from a reputable demolition company if you can pay them for their time. Many licensed companies (asbestos, demo, plumbing, mold restoration, etc.) won't bid foreclosures as they know they're wasting their time.

Be very detailed. Get money up front, you shouldn't be financing this deal. Pay attention and specify the time to complete and the time the bid is good for. Around here, Utility companies will make you wait 8-10 weeks to disconnect and cap when they find out the property is foreclosed.

If you doing this through a regional, just walk away. Too many ways to get screwed. Your client better be a national at the very least or it will never get approved as everyone in the food chain tacks on 40-50%

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post #4 of 9 (permalink) Old 08-19-2015, 10:26 PM
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We just did a 1 1/2 story home, 2 detached garages and a barn. Local demo company provided all estimates-cost $325 for bid. Mine was for a realtor that I work closely with so payment trust was not an issue.

Couldn't sell home due to murder-suicide and place was a meth manufacturing factory. Ugly and stigmatized means value was -$00.00.

I would never do a demo for any P&P Company without payment up front. No matter how much clay and backfill you use there will be settling which is their excuse for charge backs or non-pays.
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post #5 of 9 (permalink) Old 08-20-2015, 08:21 AM
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We have done a few and they never end well. The profit is so slim you are better off just cutting 10 yards and socking the profit away.
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post #6 of 9 (permalink) Old 08-20-2015, 11:18 AM
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Originally Posted by Kc7998 View Post
Has anyone ever done a complete demo on a home. How would one bid this? any thoughts ? Concerns?
We did do demo.
You need to quote for asbestos testing, have in disclaimer that if they find any, it will need to be paid based on the amount found with upper limit for removal. Include disconnection of the utilities, it cost some (check how much and indicate this is subject to change based on the current pricing ) and indicate how long process can take.
We did few demos and it was fine. However we quit industry as it became too dangerous to deal with
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post #7 of 9 (permalink) Old 08-21-2015, 03:35 PM
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be methodocial and VERY CLEAR ! Up front tell them you are charging for the bid. Also put in a HIDDEN HAZARDS CLAUSE ( underground oil tanks ETC. Contaminated soil testing and removal is BIG DOLLARS 300 PER YARD for removal alone) Asbestos tests and the like are also needed check with local authorities and COVER YOUR ASS! MOney up front 15% half way through job another 30 % and upon completion the remaining portion . What does your gut thell you ?? If it does not feel right it probably is not.and they are fishing for another bid for FREE !
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post #8 of 9 (permalink) Old 08-21-2015, 10:08 PM
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I've bid about a dozen and each time, got a professional quote, marked it up 20% and never heard back from them.

I wouldn't even bother unless they pay for a quote of $800.
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post #9 of 9 (permalink) Old 08-22-2015, 03:54 PM
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I agree with everyone here that said - walk away. If you just want to keep the client off your neck and have the time to waste, get a professional demo company bid add 20% and send that in, do not accept a reduced bid.

DO NOT try to fudge a bid and throw a number at it. Very bad idea.
DO NOT think you can do this yourself. Way too many permits and testing that has to be done.

Yes, I have regrets. There are things I wish I hadn't done . . ..things I should have done, but indeed, there are many things I'm happy to have done. It's all in a lifetime.
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