Don't underestimate your repair costs!

If you are a home seller who focuses more on buying up properties to fix them up and resell them, do not underestimate your repair costs. It is always better to over estimate and round up. Coming from experience, I failed to do this one time and it cost me over 40 grand. Not worth it in the long run and I never made that money back.

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May 2, 2020 4:06 PM

Member

I helped my sister and brother-in-law do some repairs of a house they bought a few years ago. It was a really good price but they didn't get a good inspection. It turns out that they had to put way more money into the property than they originally thought. They ended up having to sell it and taking a loss. 100% agree with what you said.

May 3, 2020 9:05 PM

I had a couple late last year who wanted to get there house sold as quick as possible. I made it happen but unfortunately, a lot was overlooked by the buyers and the home owners I worked with were not completely honest. I believe the new owners are taking it up with the state now as they falsely claimed an inspection and the property was falling apart at the foundation. Thankfully, no one was hurt.

May 5, 2020 2:44 PM

Home repairs are not cheap. I have bought and resold 2 homes. I intended on renting them but ended up selling. It took me several years before the homes were done because the repair costs added up to be way more than I expected. This was the case with the first home I bought but I learned my lesson for the second one.

May 8, 2020 5:29 PM

Member

First-time homeowners are often buying at the very edge of affordability, and that issue is compounded by their never having been to the home-buying movie before. It’s not surprising that first-time homeowners find their budgets under stress, sometimes even in the first few months of homeownership, like when the water heater blows unexpectedly or a hailstorm damages the roof (and now they have to pay the insurance deductible).

June 11, 2020 11:12 PM

Member

Right. If anything, over-estimate them. At least you'll be pleasantly surprised when you've saved some money you weren't expecting.

I'm guilty of it too, though. One of my first houses needed repairs and I thought it would cost just a couple thousand. How wrong I was...

July 18, 2020 12:01 AM