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. 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. The key is to underbid your competitor inorder to get the work orders but at the same time you want to make money from your 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.

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

Price foreclosure cleanup jobs with HUD Guidelines How its done

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.

Frequently Asked Questions in the Foreclosure Cleanup Business

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 or 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.

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.

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.