How to Bid on Foreclosure Cleaning Jobs: Inside Peek at an Actual Foreclosure Cleanup Bid (Part II)

The following foreclosure cleanup bid was for a real client. We covered exactly what the client wanted in Part I of this article on how to bid on foreclosure cleaning jobs. Here, we’ll go through actual pricing and provide notes on why/how we did certain things. Ready? Ok, let’s get to it.

Total Foreclosure Cleanup Job Bid: $6,120

Note: There were certain parts of the job that we did not bid on, ie, installing the carpet throughout the home and repairing the ceiling leak in the garage. Although the realtor told us she wanted this initially, she contracted with another company to handle these parts of the job.

Bid Specifics

Interior Cleaning: The home was approximately 4,000 square feet (3,966 sq. ft to be exact. This portion of the job included cleaning all rooms. In the kitchen the realtor requested specifically that all sinks, countertops, cabinets and appliances be thoroughly cleaned (eg, refrigerator, oven, venting hood, dishwasher, etc.).

Also, the client requested that all ceiling fans, mirrors and windows (upstairs and downstairs, inside and out).

In the garage and basement, the client only wanted a “broom swept” clean.

Rekeying Locks: Remember, there were four (the front door, back door and two basement doors).

Repairing/Replacing Garage Remotes:  This included installing new garage remote controls for two doors near the back, and repairing and/or replacing (whichever was more cost conscious) non-functioning garage door remote control that the realtor had.

Screen Door Repair: Fix broken screen door to the rear entry off kitchen.

Trashout and Debris Removal: This included removing trash and debris from the front and back yard. Some of the items were furniture, exercise equipment, clothing and other miscellaneous items left by previous tenants.

Note: Some items the owners wanted left behind included lawn equipment and other “clearly marked” items in the basement. The realtor agreed to clearly mark the items that were not to be removed with yellow Post-It notes.

Light Bulb Removal & Replacement: All broken light bulbs  were to be removed and clients requested that all light fixtures have working bulbs.

Tub Caulking: As necessary.

Job Total for the Above: $2,865

This is how we arrived at this foreclosure cleaning job figure:

Trashout, debris removal and dumping: $1,050

Household Cleaning: $675

Electrical and General Handyman Duties: $525

Window Cleaning (Inside and Out): $300 Note: This was a tri-level home with tall windows, hence extra equipment had to be rented to adequately complete the job.

Appliance Surcharge Cleaning: $225 Why the surcharge? The fridge was full of old, rotten food left behind. Industrial strength cleaners and bags were necessary, in addition to possible pest control spray.

Equipment Rental, Pickup and Delivery: $90

Important Note about Pricing Foreclosure Cleaning Jobs

The company profit was included in the rates above. As a matter of course, we do not give specific bid breakdowns to the realtor because sometimes clients will use this to price shop.

We DID provide the realtor with a “breakout quote” for the painting (see below). Why? Just in case she wanted to opt out of hiring our company for painting. We did this because the realtor had requested “touch up” painting.

We pointed out to her that it would be more time consuming, hence more expensive, to do touchup painting instead of entirely repainting because the paint on the walls was old and dirty. Hence, any “touch up” painting we did would clearly stand out and not look professional.

Foreclosure Cleanup Bid for Painting Portion of this Job

In spite of our advice above, we bid on this as a “touch-up” paint job, just like the realtor requested. This included painting the entire interior of the home, including water stains on ceiling in living room area off kitchen.

This estimate also included touch-up painting of square footage not included in main finished area, specifically the “hallway areas” leading to basement and/or garage.

This estimate does not include painting of the basement and garage.

Total square footage of area to be painted was $2,644 sq. ft. We charged $1.25 per square foot, which brought the total to . . .   

TOTAL FOR PAINTING: $3,305

Once we deducted the $50 discount for the Multiple Listing Service (we give this to realtors who belong to the FMLS because we advertise there and that’s how she found us), the total estimate for this foreclosure cleaning job came to . . . .

GRAND TOTAL: $6,170

Additional Notes We Added to This Foreclosure Cleanup Bid

–Payment immediately upon completion.

–Property owner or the realtor will provide and/or contractor for all supplies, eg, paint, locks, screens, light bulbs, garage door wall panel(s) and opener(s). As per realtor request, the quote provided is for labor only. The contractor (us) will provide all necessary cleaning and debris removal supplies/equipment.

Expiration of Estimate: This Estimate/Bid is good for 7 (Seven) days from date shown on bid.

If all is agreeable and you customer wishes to proceed, please sign and return per instructions outlined on n next page.

Pricing & Bidding

Several in-house profit margin percentages and were used to construct this bid. And, this is different for every company. Some that we used here include job distance, tri-level home, equipment needed, type of debris to be removed (there were several very heavy items), job turarnound time, etc.

About Giving Estimates for Painting

Note they want “touch-up” painting. This practically doesn’t exist. Usually, it’s easier to repaint than “touch up” paint.

One good thing about touch up painting though (if that is what you’re eventually hired to do) is that you usually don’t have to worry about areas window sills, baseboards, closet interiors, etc. Clearly state in your painting estimates what will and will not be covered though. That way, there are no surprises on either end when the job is done. To find a home’s square footage, search a county’s “property search” website and used this info to get a pretty accurate estimate.

As you can see, a lot goes into giving a foreclosure cleanup bid. If it seems overwhelming, don’t let it be. The more you give the better you will get at it.

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Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.