Rehab Analyzer - Repair Costs and Repair Cost Contingency
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Learn about the Repair Costs and Repair Contingencies that are used to determine the Maximum Purchase Price You should offer for a property.
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Video Topics
- 00:35 - Where do the Repair Cost figures come from?
- 00:55 - DIY Analysis & toggling between your DIYED estimate or Subbed estimate
- 01:50 - Repair Cost Contingency
- 02:05 - How much Repair Cost Contingency should you carry?
- 02:25 - Inputting Repair Cost Contingency using the pre-built buttons or custom amount
Video Transcript
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Introduction
The rehab analyzer is used to determine the maximum purchase price you should offer for a property. One of the variables used to determine the maximum purchase price is the estimated repair costs. Where do the Repair Cost figures come from? The repair cost values seen on the Rehab Analyzer are based upon your repair cost estimate created using the Repair Cost Estimator. The Rehab Analyzer provides a breakdown of costs by scope of work so you can see the values for each scope of work that make up your total repair costs estimate. DIY Analysis The Repair Cost Estimator has a feature that allows you to perform a DIY analysis, so you can analyze the cost savings by doing the work yourself or subbing it out to contractors. On this project, we are planning on painting the exterior, installing the Hardwood flooring and installing some miscellaneous trim ourselves to save on construction costs and make a more competitive offer. The Rehab Analyzer allows you to quickly toggle between your DIYED estimate and your SUBBED estimate to see how your DIY Savings impact your maximum purchase price. As you cans see, when I toggle between DIYED or SUBBED you can see that the cost breakdown as well as the total repair costs reflect those DIY savings and ultimately we are able to make a more competitive offer. Repair Cost Contingency Carrying a Repair Cost Contingency is always a good idea to account for those inevitable unknowns or issues that arise on every rehab project. How much contingency should I carry? The amount of contingency you carry is up to you and could depend on your level of experience estimating construction costs or your comfort level with the project scope of work. If it’s a pretty straight forward cosmetic rehab, less contingency would be required than a complete interior gut or addition. Inputting Repair Cost Contingency The repair cost contingency is based upon a % of the total repair cost estimate. You can use the pre-defined contingency buttons, from 0% to 25% or input your own custom % or lump sum. |
