Want to know how to price foreclosure cleanout jobs correctly?
If you want to get into this business of cleaning out foreclosures then it’s important that you learn how to correctly price your services. This is a very important factor that will determine the profitability of your business. Always remember that setting up a quote for cleaning out foreclosures can include a lot of different things. One situation is that you can provide everything from normal clean outs, to the cutting of the grass, and basic maintenance, to gutter cleaning, painting services, repair work and many more.
You want to know that truth? Well the simple truth is that there are no easy or any magic formula for pricing your foreclosure cleanout services. Before you do anything drastic, it’s important that you make sure you do an ocular inspection of the property first before giving out your price quote. You’re going to receive many inquiries about wanting a quick quote over the telephone but you shouldn’t fall for this. So again, it’s critical that you visit the property first before giving out your prices.
There are many newbie companies that get into some more challenging situation by providing a quick quote. In this article, we’re going to check out some of the major and important factors that you should consider first before giving a price for your foreclosure cleanout services.
1. Pricing is different in every area. Clients in a big city is willing to pay more than someone in a smaller city. New cleanup companies can call up or do a research on how much their competitors are charging. If you’re the only one around, then you can call up similar services that you’re also providing like the lawn cutters, gutter cleaners, painting services, etc.
2. Who is going to pay you and how are you going to get paid? It’s crucial to know how you’ll get paid so you can set your rates more effectively. If you’re dealing with a realtor, then you might think about lowering your rates so they can afford your services. You’re going to get good deals from this type of realtor in bulk orders.
On the other hand, if you’re going to be paid by a bank then you need to set your quote a little higher. Why? It’s because payments from banks are always delayed.
3. When it comes to the pricing of the cleanup, you have to think about the whole picture of the property. Are you going to give a rate based on bulk orders or is it going to be a one time cleanup job? Just like I’ve said earlier, you’ll need to keep your rates a little lower if you’re going for the bulk orders. Although it’s advisable to avoid the bulk orders that are promised.
If a buyer is checking out for estimations, then it’s important to know if they already closed the property or they’re still in the offer phase. If they’re finished with the closing then schedule to meet with them so you can evaluate the property. Most of the time, you’re still going to do a lot of work in this situation.
But if they’re not finished with the closing stage, they’re just checking out for cheap estimate rates from other contractors. They will determine the lowest offer so they could counter your offer. In this situation, it’s best that you’re not going to be the lowest bidder.
4. Any plans of being a sub-contractor? There are larger property preservation companies that employ smaller foreclosure cleaning companies. Lower your bid if you’re gong to work for them because their budgets are restricted by the HUD-type policies.