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Repair estimates for REO properties

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Ted Martin

Thread Starter
Senior Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Kansas
I've been using the Craftsman Publishing National Repair and Remodeling Guide for my REO repair estimates. It's a book but it comes comes with a CD that has a program that allows me to generate a repair estimates that I save to a TXT file and import into an ACI addendum page. It seems to work pretty slick although I have to clean up the fonts and make it look pretty in the report. It cost $50 +/- as I remember it.

What is everyone else using for this aspect of the assignment?
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
I do not use your guide but rather local contractor estimates.
 

metrocoast

Freshman Member
Joined
Feb 7, 2002
Professional Status
Certified Residential Appraiser
State
California
Marshall & Swift has a book called the "Home Repair and Remodel Cost Guide" which they publish annually. This is my primary tool when developing cost to cure estimates for REO repairs. There are no quartely updates as it is a soft cover book but they do publish a new edition each year. I find it to be very useful in that it gives me specific data to base my repair estimates on.
 

jtrotta

Senior Member
Joined
Jan 16, 2002
Having been around the business for sometime now, I like Mike G. - use local contractors as a source. If you ask the right questions you get local market data thats better than any book; it's current and reflects market conditions at the time of your work :) what you need to know is how to calculate the entrep. %; have some friends in the insurance business that I chat with from time to time to keep my knowledge base up dated 8)

Good Luck :!:
 
A

Anonymous

Guest
There are other programs like SoHo that have a computer program with changable unit costs that you can alter to your hearts desire. The only problem with contractors is they lie, they don't have time to answer your silly - a'd questions, and they are guessing at what you are seeing..all for free OR you have to hire them to do an estimate. The former method, I see most appraisers use it, and what happens if you go to court? Courts are fond of defensible reponses, and the Craftsman books are defensible, not to mention the contractor will be much annoyed to end up in court over his freebie estimate.
There are some other books that I saw in Barnes/Noble that are similar, but like you, I use the Craftsman books CD even if it is not perfect. If you ask three contractors you will get 3 wildly different answers. When I built a barn last year, I had 6 bids from $3.08/SF to $4.50 (3200 SF pole haybarn with no sides). That is $4,500+ difference.
 

EVAUSA

Junior Member
Joined
Jan 26, 2008
Professional Status
Certified Residential Appraiser
State
California
General knowledge for carpet, paint, fixtures, etc. Contractor quotes for major rehab/repairs. Another consideration, "Actual Cost" for REO addenda, "Market Reaction" adjustment to repairs needed on the grid. I see a lot of reports where the appraiser matches the repair cost from the REO addenda over to the grid, but market reaction may not be the same. The lender needs to know if repairs are curable.
 

Doug Wegener

Senior Member
Joined
Apr 14, 2005
Professional Status
Certified Residential Appraiser
State
Oregon
Repair estimates

I've been using the Craftsman Publishing National Repair and Remodeling Guide for my REO repair estimates. It's a book but it comes comes with a CD that has a program that allows me to generate a repair estimates that I save to a TXT file and import into an ACI addendum page. It seems to work pretty slick although I have to clean up the fonts and make it look pretty in the report. It cost $50 +/- as I remember it.

What is everyone else using for this aspect of the assignment?
I use my sister. She has a contracting business fixing up these REO'S.
 

BenLuby

Senior Member
Joined
May 28, 2002
Professional Status
Certified Residential Appraiser
State
Georgia
Having done rehab, and having family that is still in it, I use my own experience as well as discussing it with local professionals I know, both as contractors and as flippers. Reliable people are the key.
What it costs in the metro area will vary from what it costs in a rural area, obviously.
For carpet and flooring estimates, some of the major chains (Home Depot, Lowes) have a Price PSF displayed for installation and removal, and, if you know the approximate yardage of carpet that you need, they are pretty accurate.
 
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