Welcome to the first post in our “Featured Tool of the Month” series on Hammerpoint Home Repair Estimator and Rehab Planner! Follow us, as we break down our software, pixel by pixel.
Today’s post focuses on how to use the Hammerpoint Home Repair Estimator tool to assess the condition of a property and the costs associated with repairing damages, making upgrades, and replacing appliances.
Last month we covered Direct Mail and how to effectively use it to get more leads for your business.
But what happens next?
THE IMPORTANCE OF HOME REPAIR ESTIMATES
Once you get a new deal, one of the most important things you can do is assess the current value of the property, the necessary repairs, and the after repair value. Doing this will help you understand what the purchase price needs to be for you to buy it, what the sales price needs to be when you sell it, and how much you can put into it for repairs while still making a good profit. Without having a clear understanding of these numbers, it’s easy to think you’ve got a good deal on your hands and end up losing money.
Today’s post covers the Hammerpoint Home Repair Estimator’s functionality as well as the value of having this tool when you're out in the field. While certain properties may be appealing because of their price, you need to thoroughly inspect the condition of the interior and exterior before making an offer.
All real estate investors know they need to do this, but accomplish this particular step in different ways. Some use a contractor. Some use their own expertise. Some use a software program to lead the way. Some use a checklist that they print out and take with them.
This step is critical; so whatever your method is for accomplishing it, make sure it gets done for every property you think about investing in.
HOW IT WORKS
The Home Repair Estimator allows users to create accurate repair estimates on the go using their laptop or tablet. This tool systematically guides the inspection for necessary repairs including exterior, interior, and mechanical features of the property so a complete repair estimate can be accomplished in a single walkthrough.
To get started quickly, the Repair Estimator is equipped with hundreds of default repair items and costs, including common repairs and nationwide averages for pricing. Adding new repair items and editing pricing can customize the Repair Estimator to better fit your business and local costs and can be done at any time.
As you go through the simple point and click interface, selecting specific repairs, the Repair Estimator creates a detailed report, calculating individual costs as well as the grand total for all necessary property repairs.
While many real estate investors may have reliable contractors or handymen that use their expertise to assess whether a property is worth investing in, not every investor has this same luxury. With that in mind, I’ve included a list of items you need to consider before investing.
WHAT TO LOOK FOR
Don’t let the appealing design features of a property distract you from crucial money pit indicators. There is a fine line between investing in a fixer-upper and a property that needs more work than it’s worth. Knowing what to look for and exactly what repairs will cost removes all the guesswork out of buying and helps with lender and seller negotiations.
Before you invest, be mindful of these red flags:
- Crooked windows or doors are signs of an unstable foundation; one of the most costly repairs to make.
- Look at the roof. Any sagging areas are indicators of a poor or damaged support system typically caused from snow build up or general wear and tear. Roof lines should be straight with no waves or dips.
- Look for exterior foundation and stress cracks and, if you find them, you might want to move on.
STRUCTURAL INTEGRITY IS KEY
- Once inside, check out the basement first; the foundation of a property is the most important component.
- The walls, ceiling, and floor show the quality of the construction. Any cracks, stains or leaks suggest costly potential repairs.
- Keep on eye out for any cracks or gaps on hard-surface flooring, drywall, or near windows, as these are surefire indicators of an unstable foundation.
- Horizontal/Angled cracks call for a thorough inspection as these signs warrant foundation shifting or possible water damage.
- Ceiling stains mean the problem is above that point from a leak in the roof or cracks in piping.
- Check for water damage, dampness, mold, or mildew throughout the house, but especially in the basement, bathrooms, and kitchen. Don’t forget to check the caulk around sinks and seals around windows for leaks.
Water damage issues can be among the most costly to repair and should be taken very seriously.
- Before you leave the basement, locate the heating, cooling, plumbing, and electrical units. These systems can be extremely costly if they need to be updated based on their condition or age.
* Side Note for easier selling: Layout
The layout of the house is also very important. Even if the rest of the house needs minimal repairs, the layout and basic style must be taken into account. If the layout is wacky and doesn’t make sense to you, you’ll probably have a hard time moving the house when you’re ready to sell.
With Realeflow’s Hammerpoint Repair Estimator, you can assess all of these details and more.
After you’ve assessed the property using Hammerpoint as your guide, you can create a complete repair estimate report which can be edited, saved, and printed at any time.
The Repair Estimator saves you a ton of time and covers every nook and cranny of each property so you have a true vision of the costs associated with the necessary repairs.
Keep in mind, a property for a nice price doesn’t always mean that it fits your budget. The additional costs for repairs and restoration might be more work than it’s actually worth.
Knowing how much you will have to invest on top of the asking price for the property will help determine if the overall investment fits your budget.
I’m curious to know what resources you have in place to assess your properties?
Please let me know by leaving a comment below, and be sure to stay tuned for next week’s post as we cover the Hammerpoint Rehab Planner!