Estimating Cost of Repairs?

[Appretiare]

What is the best way to estimate the cost of repairs these days? I am a newly minted licensed residential appraiser and during my trainee days, I never saw a class offered on estimating repairs (I would have liked to have taken such a class). My supervisor appraiser uses Marshall & Swift to estimate the cost of repairs but the estimates from M&S are for new construction, not "repairs". Consequently, many of the "repair" estimates from M&S seemed off from a common sense perspective.

Let me enumerate some thoughts on cost estimates:

1) Marshall & Swift used to publish a repair guide but they no longer do. Is there anything else like it?
2) Getting actual estimates from contractors is time-consuming and, as most should know by now, the estimates will vary widely between contractors.
3) The on-line contractor companies (Angie's List, HomeAdvisor, etc) will provide "average" cost of repairs but again this is just guesswork.

Does anyone have advice?

 

[Tom D]

I don't include cost to repair ever. Some FHA lenders, especially on reverses wanted the costs.

I would not do it for anyone until they asked me. It's actually not revelvant on a sale, not being escrowed. Same on a refi, gotta be done before settlement. Putting the cost in does what.

Only needed if being escrowed mostly.

 

[Appretiare]

Repair costs are commonly an assignment condition for lending work, even conventional. The only way out is not to accept the assignment, which is a dubious business decision in this current low volume environment. There must be a credible way to estimate repair costs, preferably from a third-party source.

 

[Dublin ohio]

Repair costs are commonly an assignment condition for lending work, even conventional. The only way out is not to accept the assignment, which is a dubious business decision in this current low volume environment. There must be a credible way to estimate repair costs, preferably from a third-party source.

Homewyse.com isn't bad. But if you are estimating repairs. Hope you have a reasonable knowledge of what you are looking at. Not all repairs are equal.

 

[Tom D]

I never get repair cost asked for. Possible, it's the AMC that is asking, not the lender. Have never seen it in any order that i have gotten.

Curious to see if other direct lenders ask for it. I forgot, on REO work i did have to do repair cost, but those appraisals didn't pay fair for the amount of work required, i won't do them.

I've rehabd & built row homes, i can't answer starting from scratch. But easier now, than before the internet.

Some smart posters here will give you an answer.
You should specify whether minor things or remod stuff.

 

[Appretiare]

Homewyse.com is interesting. Do you use that for your reports?

 

[Appretiare]

I never get repair cost asked for. Possible, it's the AMC that is asking, not the lender. Have never seen it in any order that i have gotten.

Curious to see if other direct lenders ask for it. I forgot, on REO work i did have to do repair cost, but those appraisals didn't pay fair for the amount of work required, i won't do them.

I've rehabd & built row homes, i can't answer starting from scratch. But easier now, than before the internet.

Some smart posters here will give you an answer.
You should specify whether minor stuuf or remod stuff.

I have had the VA, Lenders and AMCs ask for repair costs and send the report back if these aren't included. Repairs are a relevant characteristic that will effect the indicated value so naturally the intended user is going to ask if its missing.

 

[Appretiare]

I should mention for repairs I don't understand I make the report subject to inspection by a company in the relevant business for repair (HVAC, roofing, plumbing, etc). We have language in the reports that we are not home inspectors.

 

[Dublin ohio]

I should mention for repairs I don't understand I make the report subject to inspection by a company in the relevant business for repair (HVAC, roofing, plumbing, etc). We have language in the reports that we are not home inspectors.

So what kind of "repairs" are you referring to. Flooring, drywall, broken windows. Are they mostly cosmetic repairs.

 

[Appretiare]

So what kind of "repairs" are you referring to. Flooring, drywall, broken windows. Are they mostly cosmetic repairs.

Yes all of those and more are typically what I encounter. I mean it can vary for any assignment.