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6 steps to estimate rehabilitation costs for your Vancouver real estate

When it comes to Vancouver real estate, the term “rehabilitation costs” comes up a lot. But what are rehabilitation costs? Why do these cost matter – and how do you calculate them?

What are rehabilitation costs for Vancouver real estate?

Rehabilitation costs most often come up when you’re dealing with older properties and homes that haven’t been well cared for. In essence, rehabilitation costs are the price of bringing one of these properties back up to ideal condition.  

Why even deal with these properties? Why not go for a piece of Vancouver real estate that’s already in perfect condition? Most of the time, properties that require rehabilitation are sold for well below value, which makes them a good choice for buyers looking for real estate to flip. In order to make that flip worthwhile, though, you have to correctly estimate the rehabilitation costs required and negotiate your offer accordingly.

6 steps to estimate the rehabilitation costs for your Vancouver real estate

1. Plan your end result

You can’t estimate rehabilitation costs unless you know what the final product needs to look like. The end result should line up with other homes in the area, so make sure you check out the neighbourhood. If you can, try to see the interior of the home as well.

2. Check out the property

It’s important to know what you’re working with. That’s why you need to do a thorough tour of the Vancouver real estate you’re considering buying. Make sure you see every room in the house, including any basement and attic areas.  

3. Make a list of all the issues

As you tour the property, keep a running list of all the issues. Nothing should be considered too big or too small to make the list. If the owner will let you, you may also want to take photos of any significant problems.

4. Group the issues

Once you have a list of all the issues you’re dealing with, group them into categories. What type of categories should you be making? Go for broad groups, but not to the point where the categories are no longer useful. I would suggest groupings like roofing, painting (indoor), painting (outdoor), and landscaping.   

5. Estimate prices for each grouping

Work on establishing a price for each category. This is where the photos can be helpful. Take the photos to any experts you would be hiring and get quotes for the work. If you are planning to do the work yourself, make sure you are qualified to do it and ensure you factor the price for your time into the quotes.

6. Ask the expert!  

There can be a lot of hidden costs when dealing with a piece of Vancouver real estate in need of rehabilitation. That’s why it’s important to always work with a Realtor. A Realtor will also help you get the best price on the property, allowing you to maximize the amount you make on the flip.

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