Monday, December 8, 2014

203k Feasibility Report for a Buyer

What is a 203k feasbility report?

A buyer is looking at a home that needs substantial work... how much will it cost to make those repairs? That is the big question. If it costs $50,000 then we have a deal, but if it costs $150,000 this isn't the property for this buyer.

Solution: Have a contractor provide a cost to make those repairs, an estimate. What do you do with that estimate? Use it to make your offer.

Why would you use a "consultant" to do that same estimate? Simply this, a contractor might miss the obvious additional repairs and only provide you with a bid to cover the major issues. The minor issues can also add up to your demise. The second reason is the consultant will provide the bid overnight while the contractor, in most cases, may take a week or more.

Learn to use the right tool in your toolbox, the contractor and the consultant are just tools at your disposal, use the right one that fits your situation.