Knee deep in a FHA 203k Home deal I have been sifting through bids from contractors. While looking at Labor and Materials it made me realize that our business is not entirely different. Real Estate as well as General Contracting is generally vague on what we do. A bid is more concrete than say a listing presentation but both include extensive behind the scenes work. Then once the work starts we don't our clients and tell them we are searching and networking to find them that right home each time we pull up the MLS our preview a home. Contractors also don't call to tell clients they are picking up a hammer and driving a nail.
Here where this could benefit our business though. Next time we go on a listing appointment or talk to a buyer we should be prepared to share a bid of work. Either in-progress or completed. Think about it. How impressive would it be to hand a seller client a 4 page bid describing what systems and tools you have in place and what you will do to market their home. Labor adds up fast this way. We may not have "Material" costs but we do have: dues, licenses, desk fees, commsion splits, CE, advertising, office equipment, cell phones, cars, physical and mental health. You will see the mental health cost if you try to work with contractors on a FHA 203k.
Lastly, some lenders require a Contractor Reference Form. What a great idea for our business. Why not put you last three happy clients on a form and encourage your new clients to call them. We all know referrals have built in trust.
Worth and Trust should be easily gained with this type of transparency. If the government reqires it for FHA 203k Home it has to be right.
Although my blog is sarcastic at times I do see a benefit to FHA 203k Home ownership. What a great way to make affordable housing and better our communities.