Why your repair estimate decides the deal
Every number in a wholesale deal leans on the repairs. The buyer’s price is the value after repairs minus the repairs minus their costs and profit. Your offer comes from the buyer’s price. So if your repair estimate is $15,000 short, one of three things happens: the buyer walks, your fee disappears, or you go back to the seller and ask for less. The third one is the worst, because it costs you the one thing that got the contract signed: your credibility.
And the repair estimate is also your best tool at the kitchen table. When a seller thinks a new kitchen costs 2 grand, a line-by-line scope with real prices ends the argument. You can NOT argue with the numbers.
A scope of work is the line-by-line list of repairs the house needs, each with a price. That’s what you’re building.
Walk the house like a buyer will
Go room by room, top to bottom, outside to inside, the same order every time so you don’t skip anything. Photograph everything that needs work, and a wide shot of every room. Your buyer will ask for them, and your seller will see you did your homework.
| Look at | What to check |
|---|---|
| Roof and exterior | Age and condition of the roof, gutters, siding, windows, doors, grading and drainage. |
| Structure | Foundation cracks, sagging floors, water in the basement or crawlspace. |
| Systems | Age of the furnace, AC and water heater; the electrical panel; the plumbing you can see; any signs of leaks. |
| Kitchen and baths | Cabinets, counters, fixtures, tile, and whether they need updating or replacing. |
| Everywhere | Flooring, walls, paint, doors, trim, lighting, smells and signs of mold or pests. |
The big-ticket items (roof, foundation, systems, water) are where estimates go wrong. If you’re not sure, write “needs inspection” on the line and price a range, rather than guessing low.
Price the rehab your buyer will actually do
Not every buyer does the same renovation. A flipper has to bring the house to the same condition as the renovated houses it will compete with. A buy-and-hold landlord doesn’t:
These investors are not going to refinish the floors or put granite countertops in. They have far lower repair costs and their offer is much higher.
So decide who the likely buyer is, then scope the rehab they would do. Look at the comps you used for the ARV: their kitchens, baths and finishes show what “renovated” means in this neighborhood. That’s the standard a flipper has to meet, no more and no less.
Price every line with real numbers
You used to go to HomeDepot.com; that gives you material prices, not what the job costs. The prices that matter are the ones your contractors (or your buyers’ contractors) actually charge in your area, labor included.
- List every repair as its own line.Kitchen, bathroom, appliances, flooring, paint, roof, HVAC. One line each, not “misc. $20k”.
- Price each line with local rates.From your contractors, recent bids, or a tool that uses your own contractors’ rates.
- Add 10% for surprises.There are always surprises once the walls are open.
- Attach the photos.A line with a photo is a line nobody argues with.
EstiMate builds this scope from your walkthrough photos and prices each line with your own contractors’ rates, so you can show it on your phone at the kitchen table.
What to do with the number
- It sets your offer. The repairs go into the buyer’s price, and your highest allowable offer comes from that (how).
- It goes to the seller. Show it at the appointment. Always honest and transparent: then your numbers back you up.
- It goes to the buyer. Send the scope and the photos with the contract. Buyers trust a wholesaler whose numbers hold up on their own walkthrough, and they come back.
The repairs are bigger than you expected? Your offer goes down, not your fee. Redo the numbers before you talk price.
Estimate repairs, step by step
- Your phone (photos) and a notepad
- A flashlight and a moisture meter, if you have one
- Local contractor rates, or EstiMate
- Pull the comps first.So you know what “renovated” means on this street.
- Walk the house in the same order every time.Outside, structure, systems, kitchen, baths, everything else.
- Photograph every problem and every room.
- Decide the likely buyer.Flipper or landlord, and scope their rehab.
- Price each line with local rates, plus 10%.
- Flag what you’re unsure of.Price a range, and get a contractor’s eye on it before you sign if it’s big.
- Put the total into your numbers,then take the scope to the seller and, later, to your buyer.
| If this happens | Do this |
|---|---|
| You can’t tell how bad the roof, foundation or systems are | Price a range and write “needs inspection”. Don’t guess low to make the deal work. |
| The seller says your repairs are too high | Show the lines and the photos. If a line is wrong, fix it. If it’s right, it stays. |
| A buyer says your repairs are too low | Walk it with them. If they’re right, your next estimate learns from it. |
| You find something big after signing | Tell the seller honestly and show it. Don’t invent reasons; the numbers speak for themselves. |
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Questions
How do wholesalers estimate repairs?
By walking the house, photographing every problem, listing each repair as its own line, pricing it with local contractor rates and adding a margin for surprises.
How much should I add for surprises?
Adding 10% on top of the line items is a sensible starting point, and more when the roof, foundation or systems are uncertain.
Should I estimate a full renovation?
Estimate the rehab your likely buyer would do. A flipper has to match renovated comps; a buy-and-hold landlord usually does less.
Can I use Home Depot prices?
They give you material prices, not what the job costs. Use what contractors in your area actually charge, labor included.
What if the repairs turn out bigger than I thought?
Your offer goes down, not your fee. Redo the numbers and show the seller why, honestly.
