Real Estate Repair – Exterior Real Estate Repairs – REIClub.com
Understanding Real Estate Repairs Are Essential When Making Offers. Here Are Some Real Estate Repair Tips For Real Estate Investors…
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Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got a quick video on external property repairs you should look for when assessing an investment
The time to add up the true costs of fixing a house is not after you buy, but before you make an offer. Impatient investors make the mistake of moving too soon on a house deal without anticipating real repair costs.
On the other extreme, overly cautious dealers don’t move fast enough on a deal, losing out by overanalyzing repair costs.
Our goal today is to help give you a bit more direction when Estimating Repair Costs for Real Estate…
Note: Property repair estimates may vary by state and city due to labor and material costs, and the properties I am referring to are generally 1200-1500 sq.ft type of homes.
1. Check for Structural Damage
Foundation – slab or pier-beam
– Cracks in the brick, cracks in the slab
– Is the house leaning?
– Is the soil separated from the foundation?
– Once inside – check cracks on walls, usually around door frames, windows
– Hard time closing doors?
– Uneven floors?
– Seller Disclosure – previous foundation repair?
Tip: Most of the time you want to stay away from replacements. Lots of hassle.
– How old is it? 15-20 years – red flag
– Are there any dark spots or apparent damage? Missing shingles
– Is there warping? Does it bow in areas?
– Once inside – eyes up! – yellow stains, signs of water damage, how extensive?
– Seller Disclosure – previous roof repair? replacement?
– Hire a roofer to provide an estimate – free estimate
Tip: Get multiple quotes on repairs – many roofers will default to complete replacement.
– What type of fence is it? Chain linked, wood? Custom?
– Does it need to be replaced? or can it be repaired?
– Dig 3ft hole for beams – hassle
– Cost can usually be shared with adjoining neighbor – negotiable
3. Paint – Exterior
– Will a Power wash make it look new? – machine rental cost is low
– Oil vs. Water Base
4. A/C Units
– How old is the outdoor unit? 15+ is a red flag
– Variety of brands – don’t necessarily need to match with internal
– Cost to fix – unless you know someone – better to replace
Tip: Make sure you match the seers to the tonnage
– Concrete work?
– Do you want to put a garden in?
– What’s the condition of the grass?
– Do any trees need to be removed? Trimmed?
Tip: It doesn’t take very much cosmetic landscaping to make a house look nice
6. Miscellaneous Structures
– Storage rooms – keep or demo
– Decks or patios – refinish? repair? tear down?
– Pool – condition? working?
– Get out and look at homes to learn the standard materials and features in your area.
– Develop a network of professionals, from real estate agents to general contractors, who know the ins and outs of repairs.
– When making a repair estimate, add in a cushion of cost since it’s quite easy to underestimate what you will spend rehabbing a property.
Hopefully now, you have a better idea of how to approach a property, and what to look for when assessing repairs. We always encourage newer investors to take extra precautions, such as requesting an option period and to hire an inspector, and a few contractors to come out to provide professional property repair estimates. Pro-tip, walk-through the property of interest, write down everything you think needs to repaired, and call contractors around town
Make it a practice to always improve your methods for making quick and accurate repair appraisals. The better you are at estimating home repair costs, the more confident you will become at choosing profitable investment opportunities.
Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you’ll be automatically notified when we upload more quick video tips for you. Take care and good investing.