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Breakdown of a $6,120 Real Estate Cleanup Bid For Foreclosure Cleanup Business Owners
A foreclosure cleaning company may get requests from real estate agents, banks, and larger property preservation companies to bid on various services. For example, as the owner of a foreclosure cleaning business, you may need to bid on lawn care, tree trimming, gutter cleaning, trash removal, sheet metal repair, cleaning ‘interiors, removal of carpets and vinyls and much more.
Bidding properly can be a bit tricky if you don’t have everything in mind. Below is a quick and dirty breakdown of a recently completed property cleaning and repair estimate so you can take a look at how it was bid.
Details of the offer
Below are the various items that the managing real estate agent wanted this foreclosure cleaning company to bid on:
— Complete interior cleaning of a 3966 square foot home: including all bedrooms, kitchen counters/cabinets/sinks, all appliances (refrigerator, oven, range hood, dishwasher, etc.), ceiling fans, mirrors and windows (upper and lower level, inside and outside); sweep basement and garage areas.
–Key change doors (front, back and two basement doors).
— Install new garage remotes for 2 garage doors near back; repair or replace the inoperable garage door remote that the real estate agent has.
— Fix the broken screen door at the back entrance to the kitchen.
–Waste Removal: Remove waste, furniture, exercise equipment, bicycles, misc. household items and discard them (except lawn equipment), including clearly identified basement items. (Note: The real estate agent will place yellow post-it notes on items and furniture that must BE.)
— Replace all missing or broken bulbs.
–Heating the tub as needed.
Total miscellaneous items above: $2,865
For the items above, this real estate company offered $2,865.
The bid allocation was as follows: $1,050 for trash pickup and dumping (large and heavy items); $525 for electrical and manual labor; $675 for cleaning; $225 for appliance surcharge (fridge was full of old, rotten food); $300 window surcharge (3-level home, interior and exterior, tall windows); Equipment rental, pickup and delivery for $90.
Please note that the company’s profits have been factored into the figures above and we did NOT give a breakdown of the offer to the estate agent other than the paint separation in case they wanted to opt out to paint (See the paint breakdown part below.)
Part of the budget painting
–Interior “touch-up” painting of entire house (APPROX. 2,644 sq. ft. MAIN FINISHED AREA), including water stains on living room ceiling off kitchen. The estimate also includes touch-up painting of square footage not included in the main finished area, specifically the “hallway areas” leading to the basement and/or garage. (Does NOT include any paint in the basement and garage.) 2644 sq. ft. x 1.25 sq. ft.
Total for painting: $3,305
Estimated Subtotal: $6170 (less $50 discount on: Realtor affiliation with a local multiple listing service)
Estimated FINAL Total: $6,120.00
Notes included with estimate:
— Payment upon completion, as indicated in formal terms.
–Owner/Realtor shall provide and/or reimburse Contractor for paint, locks, screens, light bulbs, garage door wall panels and openers. According to the request, the quote is for labor only. However, the contractor will provide cleaning supplies and debris removal supplies.
–Seeing it, there was no need to remove the exterior debris or do lawn work.
–This estimate/offer is valid for 7 (seven) days from the date of the estimate/offer. If the customer accepts the estimate/offer, please sign and return as per the attached contract instructions.
–Days to complete: 2 days (two days)
Love the machine?
In the early stages of your foreclosure cleaning business, as discussed in detail in How to Start a Foreclosure Cleaning Business, you’ll be an estimating machine, but the more estimates you do, the better you’ll be at pricing and offers in real estate. and foreclosure cleanup tasks.
Prices and offers
Various internal profit margin percentages and various soft and hard pricing factors influenced this estimate.
For example, geographic distance (home is 50 miles from office base); the rental property is put back on the market; the stage was a real estate agent in charge of the eviction, repairs and subcontracting of the work for the owner; elegant subdivision; large, three-level, executive-type home; various heavy objects in debris (exercise equipment, bicycles, tools, etc.); and other relevant factors.
A word about painting budgets
Please note that this estimate calls for “touch up” paint. Be careful when a client requests touch-up paint, because it’s often easier to paint over everything. But in a real touch-up job, you shouldn’t be touching window sills, baseboards, inside cabinets, etc.
Note: You can find out a home’s square footage (to include in the bid portion of the painting estimate) by going to a county’s property search website.
Good luck with your estimates in your foreclosure cleaning business! And, remember, the more estimates you put in there, the more comfortable you’ll feel writing them and the more business you’ll eventually land.
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