Real Estate Foreclosure Cleanup Job Bid Pricing Guide

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By Research Analyst

Junk Removal needed for REO and Foreclosures

foreclosure cleanup real estate bid for property trashout
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foreclosure cleanup real estate bid for property trashout

Lawn Maintenance and Landscaping, Cleaning Winterization

As a small business owner you will need to contact real estate agents, landlords, banks and property preservation companies, to negotiate bids for various foreclosure cleanup jobs in Arizona.

What is your real estate bidding strategy?

How much you charge will be determined by what type of work your company will be performing for the various businesses.

Each cleanup such as lawn work, tree trimming, sheetrock repair, carpet removal and interior cleaning prices will change depending on how big the property is and how long it will take to finish the job.

How to estimate the cost of a cleanup job

If you go online you can get an estimate on how much has been paid on previous work orders with similar companies offering the same services as yours, for example if you are doing a full interior cleaning of all rooms in the house or you are requested to re-key the doors. repairing a broken screen door or removing debris from the yard, this could cost anywhere from $1000 dollars to $3,000 dollars to complete.

Property Preservation Contractors Needed for Vacant Homes

The key is to underbid your competitor in order to get the work orders but at the same time you want to make money from your Arizona foreclosure cleaning business.

Remember you may to rent equipment and hire subcontractors to help get the work done, painting the interior of the house can run up the price of the bid if you are taking care of water stains on the ceiling in the living room and kitchen and hallways, it is determined by the square footage of the entire home. It may be necessary to take a look at the house and determine what can be done before actually putting in your bid for the job.

Price Foreclosure Cleanup Jobs HUD Guidelines

Many foreclosure cleanup companies today must offer all services to lenders to get the job,

If you currently only specialize in a certain area you may want to expand to include: lawn maintenance, trashouts, pressure washing, gutter cleaning, repairs, and painting.

Subcontracting Jobs Help Wanted

Millions of adjustable rate mortgages in the millions are causing homeowners to default on their monthly mortgage payments.

So it is important to price your services so that you are able to receive a profit from your work. It starts by doing your research and learn how contracts work, who gets paid and when, as well as how to win a contract on a real estate bid, that is why using the HUD pricing guidelines gives an estimate that property preservation companies can use.

Junk Removal REO Trashout

First of all it is important to note that the tables list the maximum amount HUD will generally pay which could end up being considerably less.

If you are a subcontractor for the job your pricing may be different than if you are the main foreclosure cleanup contractor for property preservation that the lender has chosen. It can be a little frustrating especially if you over bid and lose the contract.

Asset Managers Need Foreclosure Cleanup Specialist

Cleaning residential and commercial properties can be really lucrative is done right. Many want to know how to get started in the business but it actually depends on if you are already offering junk removal services.

if you are needing to rent or buy equipment to do the cleaning. If you are not licensed or insured this is one thing you definitely want to do first. You will be working with real estate agents, banks and mortgage companies.

Window and Door Boarding, Brush Removal for Vacant Complex

When it comes to knowing what to charge is determined by a variety of factors when it comes to finalizing a rate for your service, such as geographic location, square footage, length of time vacant, repairs and cost of materials as well if there is a need to hire subcontractors. It will take seeing the job site first to accurately determine how much to charge.

Arizona HUD Foreclosure Listings

Finding clients is another common question, you will want to start with the homeowners association and market to real estate investors, individual homeowners, mortgage brokers, who will offer repeat business to your company if you learn the right way to be a success in this industry.

Real Estate Contracting Service Foreclosure Cleanup

HELP WANTED: Property Preservation Subcontractors / Field Services Reps Needed
HELP WANTED: Property Preservation Subcontractors / Field Services Reps Needed

Some factors to consider are your geographical location, the cost of rental equipment and labor associated with the type of jobs you end up doing.

Foreclosure Cleanup Bid advice, How to negotiate your foreclosure cleaning Job bid.

Foreclosure cleanup job bid details start with you contacting realtors who have homes for rent on previously defaulted mortgages.

Many times you will find that high net worth individuals will abandon their high priced mini-mansions leaving the real estate representative to hire REO trashout companies to clean out any furniture, clothing or other items.

In the case of larger homes that have a basement or attached garage could mean that it will be a big job to finish on time.

It is important to note that the actual foreclosure cleanup bid will determine how to price the foreclosure cleaning jobs.

Real estate Cleanup Job Bid Kit

Some things you will need include: Housing Authority Contracts, Property Preservation Contracts, Foreclosure Insurance, Subcontracting Agreement, and the Estimate and Bid Form.

Government Jobs, Government Contracts

Real estate contracting services have jobs and help wanted positions for lawn care maintenance, inspection and securing, duplex cleanup, hiring skilled handyman for cleanup and repair as well as provide help with bank owned homes.

Neighborhood Stabilization Program and Impact On Foreclosures and Foreclosure Cleanup Industry

Get Foreclosure Clean-up & Property Preservation Work with Large HUD Property Management Firm
Get Foreclosure Clean-up & Property Preservation Work with Large HUD Property Management Firm

Your company will be asked to provide the following property preservation services:

  1. rekeying for locks and doors
  2. repairing garage door openers
  3. fixing broken screen doors
  4. trash and debris removal from the yard
  5. grounds-keeping of lawn and hedges
  6. cleaning out trash left behind inside the home
  7. replacing light fixtures, light bulbs, ceiling fans
  8. cleaning household appliances such as refrigerator, or stove
  9. cleaning bathrooms adding new floor tiles, installing carpet, retouch paint for ceiling and walls
  10. repair water damage or leaking roof.

Real estate cleanup estimates:

Not all real estate cleanup in Milwaukee, WI is this involved it will depend on who you contract your job with. You will want to submit an estimate of how much you charge to complete the invoice.

There has been much debate about the differences between a foreclosure cleanup job vs. a real estate cleanup job and as you note it can make a huge dent in the time spent to complete each order.

Apparently homes in Phoenix, Arizona that have not been foreclosed but instead have been abandoned by homeowners will need to be cleaned, maintained and repaired while the realtor prepares to rent out the home in the future.

That is the great thing about the flexibility of your services in this niche.

Foreclosure crisis fallout

Comments

Florida Property 21 months ago

Great post, very interesting concept. You make a good point that all the factors need to come into play. Selecting a good property agent is most important for property management who helps you throughout the buying process and beyond to completion.

Caribbean Real Estate

scheng1 16 months ago

Interesting business idea. I guess that is a skill that never go out of fashion.

Jlava73 profile image

Jlava73 Level 4 Commenter 15 months ago

Informative Article! Thanks :)

Tom Bukacek profile image

Tom Bukacek 15 months ago

Informative post! Thanks

kwpropertyservice 14 months ago

How do i Iobtain a Indiana business license to services entire state; including all counties & zips fo indiana?

eshaa 11 months ago

nice tips.really helpfull.thanks..

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