Realistic approach to assesing a foreclosed property

By
Home Builder with David Edwards Construction, LLC

     During a recent no-cost foreclosure walk-through for a prospective home buyer, the reality sunk in...buyers of foreclosed properties have no idea what it will cost to rehab the property.  Further, it reinforced the wise decision this possible home buyer had made to contact me for this free assessment.  I was able to walk through the home and instantly call out pricing for the various different repairs and upgrades the buyer wanted.  I believe the biggest danger for Realtors is for a home buyer to over estimate the expense therefore leading to a lower offer and eventually to a declined offer and wasting every ones time!

     It happened time and time again during this particular walk-through "really, that's all I need to do?".  To the trained eye, the house was in really good shape, by having your home repair professional with you during the initial visits, the home buyer has realistic views of the properties and they are able to asses the value of the home in conjunction with their budget.  The same is true for major problems or required work beyond the home buyers budget.  The Contractor can objectively estimate the costs in turn streamlining the process.

     I would recommend that Realtors dealing with distressed foreclosures work closely with a contractor that will objectively asses the house each and every time to provide an accurate view of potential costs.  Whats in it for the contractor?  Trust.  Once trust, honesty, reliability backed with the knowledge and people to get the job finished, the contractor will receive jobs and future requests to assist home buyers during the foreclosure search.  I personally enjoy helping people understand the realistic costs behind the repairs needed.  My advice to a Realtor looking to partner, find a contractor that is not looking to close sales at these visits and is willing to prove his value.

David Edwards is a State of Florida Certified General Contractor CGC1505116, specializing in home renovations. 407-232-3377  or davidedwardsgc@gmail.com

Comments (2)

Mike Norvell Sr
Morris Williams Realty - Leesburg, FL
Norvell Consulting Group

David, I  need to call on you soon for some REO EVALUATIONS

THANKS

Aug 08, 2008 01:27 PM
Katrina Hernandez
Century 21 Shaw Realty - Tampa, FL

This is very good advice. I just went thru this same thing this week on a sale.  My client is a first time buyer and had no clue what his costs will be to rehab this home.  He gave the mortgage broker a figure of 60-70,000 dollars when in actuality it will cost him around 25,000.  My suggestion to him was that when we do the inspections we have a contractor come and give us estimates on the work to get a realistic idea of where we are.  It worked rather well and gave him a reality check.  Thanks for sharing!

Aug 14, 2008 08:43 AM

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