Foreclosure Digest

Free Estimates for Fixing up Your Foreclosure Properties Can Yield a significant Savings in Your Overall Budget

No doubt you are planning on investing in foreclosure properties because you are wanting to take advantage of the downward slope in the real estate market at this time.  Right now you are able to purchase properties at well below market value.  Your work, however, does not end after obtaining the loan for financing and paying the closing fees on the foreclosure properties.

Although you may be able to rent out the foreclosure properties as is, you will no doubt have to do some fixing up.  You want your foreclosure properties to continue to appreciate so that you can get maximum dollar value in the future should you decide to sell.

The first thing you need to do is get an estimate from a qualified professional as to how much the repair and renovations will cost on your foreclosure properties before you even buy them. If you purchase without taking this step, get the estimates right after the purchase so that you can keep damage and deterioration on the property from escalating beyond your financial control.

Look around. You can get free estimates on the cost of fixing up your new home and that will help save you money when you are planning your own financial budget.

You generally get to see most of the foreclosure properties before purchasing. The banks will let you see properties, as will government owned properties in many states offered by the HUD and VA programs. It may be a bit more difficult viewing properties put up for auction, but it is not entirely impossible to see them either.  Inquire with state laws what your rights are in this manner.

How Many Free Estimates Should You Get?

• Get several estimates upon the same property and same work to be done on that property. Do not just accept the first bid for the job.

• Make it clear to the prospective contractors that you are looking for free estimates at this time.

Compare prices

• Do not invite each professional at the same time; talk to them individually ask as many questions about the work as you need: What work needs to be done, how will it be done, how long will it take to do it, what are the labor costs, and how much will it cost up front and at the end of the contract.

• Ask about the refurbishing costs (bringing property up to standards) and how long the existing appliances or things like the electrical and plumbing systems should last in their existing state.

• Ask about the replacement costs for parts.

• Take the initiate to go to the hardware stores and price these items to see if the contractor is being honest or overcharging you for the pieces.

• Use online cost estimates on fixing up properties, such as the Home Remodel and Cost Guide by Marshall & Swift. This guide is widely used through the Industry.

• Get an estimate from the hardware or home improvement center before soliciting professional contractor estimates.

Wherever possible, do your own repair work in order to cut down on fixer upper costs. Use your own people, before contracting to a private company. However, if a professional team can get material at a discount and you need quite a bit of material to fix up your foreclosure properties, you will have to weight the material cost against labor cost to see which direction will yield the highest savings for you.