Cleaning Foreclosures: 2 Things You Should NOT Do In This Biz

If you want to start a business cleaning foreclosures, there are some definitive do’s and don’ts. Here, we will focus on two things you should NOT do if you own, or about to start, a foreclosure cleaning business.

1. Price Jobs Over the Phone: This is perhaps one of the hardest things to adhere to when you start a foreclosure cleanup business. Following is one pricing scenario to keep in mind if you get tempted to price foreclosure clean out jobs via phone.

The “Price” of Underpricing: There’s nothing like quoting a potential client a price over the phone, only to realize that you’ve severely under priced it once you get on site. If you do, you have two options: (i) complete the job at the price quoted; or (ii) raise your rate.

Either way, you won’t be happy because if you’ve severely under priced it, you will lose money on the job. And, as foreclosure cleanup jobs are tough work - the last thing you want to do is work yourself to the bone only to be paid less than minimum wage.

If you have to tell your prospective client that you’ve under priced it and need to raise the price, this is going to reflect negatively on your company in two ways: (i) the client will think that you don’t know your business; and (ii) they will look at you as a price gouger.

Their line of thinking goes something like this, “Why did you quote me $500 over the phone, and now you’re saying twice that amount?” This makes you the bad guy — never a good thing when it comes to clients — no matter how “right” you are.

There’s a lot that goes into pricing a job when you run a business cleaning foreclosures. Don’t do it over the phone.

2. On Taking Photos for Realtors: Taking before-and-after photos of a foreclosed property for realtors is a standard part of the job. Most realtors appreciate it and will not abuse this service. However, beware of those who use you to take pictures (and get estimates, which is a whole other subject matter), but who have no intention of hiring you for the job..

Only take photos of properties of jobs you have been hired to do. Otherwise, if you turn in photos with your estimate, the realtor can simply take them and put them on someone else’s estimate/bid (or on their website, etc.).

Learn more critical information about about pricing jobs and more when it comes to operating a successful foreclosure cleanup business.

May be reprinted on your site, blog, newsletter, newspaper, etc., with the following attribution, in full: To learn more what to do - and what NOT to do in the foreclosure cleaning business, log on to http://ForeclosureBusinessNews.com. The site offers a plethora of information on buying foreclosures, preventing foreclosure, starting lucrative foreclosure businesses and the most recent news in/on/about the foreclosure industry. If it’s about foreclosures, you’ll find it at ForeclosureBusinessNews.com!