From the course: Real Estate: Estimating Repair Costs

The purpose of repair estimates

From the course: Real Estate: Estimating Repair Costs

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The purpose of repair estimates

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- [Instructor] So, what is the purpose of the repair estimator? The number one purpose of the repair estimator is really it's to help us make an informed offer very quickly. You see, this helps you not under calculate repairs when you're getting yourself ready and you're ready to make an offer. Now keep in mind the repair estimator. It's not designed to really calculate the exact cost of a full rehab project. The tool is really used to estimate the repair cost with very high accuracy. It's going to get us into a very solid ballpark number so that we can generate our offer but it's not going to be used to completely calculate the entire full renovation budget, or full rehab budget. Now, if you're new to rehabbing, don't deviate too far from the repair estimator. The more experienced investors you can deviate a little bit as you get more comfortable utilizing the tool. And as you get more comfortable with the different costs associated with each piece of the repair estimator, now consider your comps when you're doing repairs. Don't budget for something that's going to price your rehab or price your projects out of the neighborhood, make sure the comps are what deviate and dictate what you need to use and what you need to renovate the project for. So when do we actually want to use the repair estimator? Basically, we want to use the repair estimator every time we go view a property. This means when we're looking at a property directly from the seller can be a listed property like a traditional sell or even bank owned homes. We want to be implementing and using the repair estimator system on every property that we see.

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