How to Price Foreclosure Cleanup Jobs For a Profit

Want to know how to price foreclosure cleanup jobs correctly?

If you want to clean foreclosure homes for a living then pricing your services is going to be an important factor to the profitability of your business. Keep in mind that setting a price for cleaning out foreclosed homes can include so many things. One instance is that you can provide everything from regular clean outs, to the cutting of the lawn, and basic maintenance, to the cleaning of the gutter, painting services, repair work and lots more.

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The truth is, especially for those who are just starting out, is that there is no quick and magic formula for pricing foreclosure cleanup jobs. Whatever you do, please make sure that you first visit the property that’s going to be cleaned before giving a service quote. Many are going to call you wanting a quick quote over the phone but you shouldn’t give in. It’s very important that you see the property first before pricing.

Newbie cleanup companies get themselves into a tough situation by giving out a quick quote over the phone hoping to please the client. In this article we’re going to take a look at the factors that you should consider before giving your price to clean foreclosure homes.

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.

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