Fixing up Your Foreclosure Properties Can Yield Significant Savings

No doubt you are planning on investing in foreclosure properties because you will want to take advantage of the downward slope in the US real estate market at this time. You will be able to purchase properties at well below market value and that is a consider feather in your financial cap so to speak. Your work does not end after obtaining the loan for financing and paying the closing fees on the foreclosure properties.

Though you may be able to rent out the foreclosure properties as is, especially if you were shrewd enough to purchase only the most quality foreclosure properties in good areas. You will no doubt have to do some fixing up. You want your foreclosure properties to continuously appreciate so that you can get maximum dollar value in the future should you decide to resell.

What you need to do from the start is get an estimate from a qualified professional on how much the repair and renovations will cost on your foreclosure properties before you even buy them. If not then, right after the purchase so that you can avoid damage and deteriorations on foreclosure properties from escalating beyond your financial control.

Actually, you can get free estimates on the cost of fixing up your foreclosure properties and that will help save you money when you are planning your own financial budget.

You will get to see most of the foreclosure properties before purchasing. The banks will let you see properties and so will government owned properties in many states offered by the HUD and VA programs. There may be a little more difficulty viewing properties put up at auctions but it is not entirely impossible to see them either. Inquire with state laws what your rights are in this manner.

How Many Free Estimates are Needed?

• Get several estimates upon the same property and same work to be done on that property. Do not just accept the first bid for the job.

• Get estimates over the telephone, to insure that you do not have to pay for the cost of your estimate.

• Make it clear to the prospective contractors that you are looking for free estimates at this time.

Compare prices

• Do not invite each professional at the same time, talk to them individually ask as many questions about the work as you need: What work needs to be done, how will it be done, how long will it take to do it, what are the labor costs, and how much will it cost up front and at the end of the contract.

• Ask about the refurbishing costs (bringing property up to standards) and how long the existing appliances or things like the electrical and plumbing systems should last in their existing state.

• Ask about the replacement costs for parts.

• Take the initiate to go to the hardware stores and price these items to see if the contractor is being honest or overcharging you for the pieces.

• Use online cost estimates on fixing up properties, such as the Home Remodel and Cost Guide by Marshall & Swift, this guide is widely used through the Industry.

• Get an estimate from the hardware or home improvement center before soliciting professional contractor estimates.


Wherever possible do your own repair work in order to cut down on fixer upper costs. Use your own people, before contracting to a private company. However if a professional team can get material at discount and you need quite a bit of material to fix up your foreclosure properties, you will have to weight the material cost against labor cost to see which direction will yield the highest savings for you.