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Breakdown of a $6,120 Real Estate Cleanup Bid For Foreclosure Cleanup Business Owners
A foreclosure cleaning company may receive requests from realtors, banks, and larger escrow companies to bid on various services. For example, as the owner of an insulation cleaning company, you may need to bid on lawn care work, tree trimming, gutter cleaning, garbage disposals, sheet repair, interior cleaning, carpet removal and vinyls and more.
Making the right offer can be a bit tricky if you don’t consider everything. Below is a quick and dirty summary of a recently completed real estate cleaning and repair estimate so you can see how it was delivered.
Below are the various items that the managing realtor wanted this clog cleaning company to bid on:
— 3966 sq. ft. full interior cleaning: including all rooms, ceilings/cabinets/kitchen sinks, all appliances, (refrigerator, oven, vent hood, dishwasher, etc.), ceiling fans, mirrors and windows (upper and lower level, inside and outside); Basement and garage areas for cleaning brooms.
— Re-lock doors (front, back and two basement doors).
–Install new garage remotes for 2 garage doors near rear; repair or replace malfunctioning garage door remote retained by realtor.
— Fix the broken screen door in the back kitchen entrance.
— Junk Removal: Remove trash, furniture, exercise equipment, bicycles, misc. items from the house and throw away (except lawn equipment) — including clearly identified basement items. (Note: The realtor will place yellow postal notes on items and furniture that must REMAIN.)
–Replace all missing or broken bulbs.
— Closing the tub as needed.
Total for Miscellaneous Items above: $2,865
For the above items, this real estate company offered $2,865.
The bid breakdown was as follows: $1,050 for trash and trash disposal (large, heavy items); $525 for duties, electrical and workshop duties; $675 for cleaning; $225 for appliance surcharge (fridge was full of old, rotten food); $300 extra for windows (3 story home, interior and exterior, tall windows); $90 equipment rental, pickup and delivery.
Note, the company’s profit is included in the figures above and we did NOT give the realtor a split of the offer other than the split of the painting in case they wanted to opt out of the painting hire. (See the breakdown of the painting below.)
Painting Part of the Appraisal
— Touch-up painting of the entire interior of the house (Approximately 2644 SQ. FT. MAIN FINISH AREA), including water stains on the ceiling in the living room area off the kitchen. The estimate also includes touch-up painting of square footage not included in the main finished area, especially “hallway areas” leading to the basement and/or garage. (Does NOT include any painting inside the basement and garage.) 2644 sq.ft. ft. x 1.25 sq. ft.
Total for painting: $3,305
Estimated Subtotal: $6,170 (minus $50 discount: Realtor links to a local multiple tipping service)
FINAL Estimate Total: $6,120.00
Notes included with the rating:
— Payment upon termination as described in official terms.
— Owner/realtor shall provide and/or reimburse contractor for paint, locks, screens, light fixtures, garage door wall panel(s) and opener(s). On request, the offer is for work only. However, the contractor will provide cleaning supplies and debris removal equipment.
–After viewing, there was no need for exterior debris removal or lawn work.
— This Quote/Offer is good for 7 (Seven) days from the date of the Quote/Offer. If the Customer accepts the Estimate/Offer, please sign and return it according to the attached Contract Instructions.
— Days to complete: 2 days (two days)
In the initial stages of your clutter cleaning business, as discussed in detail in How to Start a Clutter Cleaning Business, you’ll be an appraisal machine, but the more appraisals you do, the better prices you’ll get and offers for real estate and foreclosure jobs.
Price & Offer
Several internal profit margin percentages and several soft and hard pricing factors impacted this estimate.
For example, geographic distance (home is 50 miles away from home office); rental property to be put back on the market; the script was a realtor handling eviction, repairs and contracting work for the homeowner; elegant subdivision; large, three-level, executive-type house; some heavy items in the garbage (exercise equipment, bicycles, tools, etc.); and other relevant factors.
A word about painting ratings
Note that this estimate required touch-up painting. Be careful when a client asks for touch-up painting, because it’s often easier to paint the whole thing. But in a real renovation job, you shouldn’t touch window sills, baseboards, cabinetry, etc.
Note: You can find out the square footage of a home (to include the bid portion in your painting estimate) by going to a county’s property search website.
Good luck with your ratings in your clog cleaning business! And, remember, the more reviews you put out there, the more comfortable you’ll become in writing them, and the more business you’ll get in the end.
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