REO Price Guidelines

FRS

HI. I've just started a property preservation company in Florida and have done tons and tons of research. One thing I cannot locate is a general price guideline for submitting bids. I have the HUD and FHA guidelines but my first assgt is coming from a bank. For example, what price to "secure the property" " standard trashout" "shampoo 10 x 12 room" that type of thing. What is a normal price for a broom sweep 1000 sq. ft. v. white glove? Also, what is a second bid? I hope somebody can help. I will be glad to help others once we get the hang of things. Thanks so much. Jane

will575

On your pricing: make sure you are making enough. Otherwise you will just bleed to death slowly. If in doubt start a little high and see what you need to do. They will usually pay a reasonable price. I recently did a 3,000 sf, minor trash out, full vacuum, no shampoo, some exterior cleaning, repair 1 step. I had I girl vacuuming for about 4 hours, 2 guys for about 2 hours. I charged $440 plus tax. That was good profit for me (labor here is pretty low) it took me over 60 days to get paid.

I can tell you to be ready for slow pay, and when they ask for pictures, send twice as many as you think you need, otherwise they will ask for more and use that as their excuse to pay you another month later.

__________________

SLSTech

Welcome to CT

I would start here - http://www.contractortalk.com/f16/hu...rvation-21666/ & best of luck

You might also want to put your loaction in your profile

__________________
Alabama Full Service Remodeling, Renovation, and Preservation by SLS Construction
Certified Energy Efficiency Audits, Ratings, Modeling, Verifications, & Consulting
Residential, Commercial, & Industrial Infrared Thermography Scans

cam.enterprises

Hi I read your post and I to am just starting a REO property preservation business. I have a question, how did you get your first job for a bid?.
You said that a bank is going to give you the chance to place a bid.
Did you just do the leg work and went to the banks and talked to the wright people, or send out fliers, or called. Because I have been given mixed ways on the best way to get customers. If you could give me some advise on how you did it I would be greatful.
Thanks from Carlos in San Diego.
Please e-mail me at cam.enterprises@hotmail.com

roof-lover

Welcome To contractor talk!

jr23

I was wondering the same thing but in michigan. we too are just starting out and would like to be able to give a good bid so we get selected for the upcoming work any help is greatly appriciated.Thanks Jon

Hardly Working

Most companies already have set prices for the following
Securing (lock change)
Yard cuts
Janitorials 2 levels (premium, standard)
Trash out per "X" Cu. Yds.
Winterization

You'll bid them when they exceed the normal, grass is to tall, garage packed full of trash, drywall repair, paint, .....

Be carefull not to over bid it or they'll reassign it to someone else and you'll loose the job all together. These companies don't take into consideration your location or dump fees so be very carefull when you price it out. They basiclly try to low ball you. A good friend that's been in this for over 10 years now say's "sometimes you get steak, sometimes you get hot dogs".

I bid a job the other day for a small yard but the grass was 24" tall and had laid down. Now this wasn't a big yard but the fact that it was going to take a while to weed wack it and cut it they declined my bid. Oh well between my labor and dump fee it wsn't worth it for me. If you do say, five lawns in a day and go to the dump the you'll make a little money.

Standard pay out for most companies is 30 days from approval of the completed job. Follow the work order to the LETTER and take photos LOTS of them. It is better to take to many than have to go back for something stupid like a lock box on the door.

Be very carefull or you'll go backwards money wise.

jr23

Thank you , but how do i know how much to bid and still stay competitive and make the money. I'm not sure how much to bid.

Hardly Working

How long will it take you to do the job = Hourly Rate
Overhead = Gas, Wear n Tear on the Truck, Insurance, Taxes

You need to take all this into consideration.

C.M.J.

Jr- You need to know your overhead and expenses to bid correctly or you may end up going broke. Here is an excellent thread to give you an idea what your in for with property preservation work...http://www.contractortalk.com/f16/hu...rvation-21666/
It will take you a while to work all the way to current replies, but it is well worth it. There are links to HUD pricing schedules in there. Good luck. Where are you located in this pleasant peninsula?

__________________
C.M.J. Residential Services llc.
Interior/Exterior Remodeling
Hardwood and Laminate flooring
Decks

Metro M & L

I signed up with Altisource but never actually did any work for them after I saw the prices and terms they were offering. $10.00 for a lock set. $25.00 mow a lawn. All work had to be completed within 72 hours of the work order and the work was ALL OVER. administration was remote; mainly hispanics for set up and then indian call centers chasing work orders and some bids. What a CF. Thankfully I was too busy to need to try and give that a shot.

__________________
"Yeah... It's worthy of a sig quote."

Metro M & L

Can you imagine Monday morning you get an email that says you have to mow a lawn 75 miles away by wednesday. Thursday Chupa boopa balupa calls and says the grass wasn't cut with a counter clockwise blade and wants you to go back before they authorize your $20.00 payment to be made within 180 days.

__________________
"Yeah... It's worthy of a sig quote."

boman47k

This what I do not understand. When you are called to go to the other side of the county for something small.

turbo65

20 per lock change,2nd bids means you are the 2nd contractor to place a bid on the property,general trashout means everything goes,and about .20 a sq ft is all they want to pay,the cleanout will be charged in cuyd i.e $20 per yd.,bid new appliances if needed also the wint and handrails,roof condition,walls,paint and all the other things to increase the sailability of the home good luck its a tough business