How do you estimate repair costs on a wholesale deal?
Walk the property, or review photos, and list what each area needs: roof, systems, kitchen, bathrooms, flooring, paint, windows and exterior. Price each item with local contractor costs, then add a 10% to 20% contingency for surprises.
Big-ticket items decide the number: roof, foundation, HVAC, plumbing and electrical. Hidden damage is the most common source of underestimates, which is why contingency matters.
Your estimate does not need to be perfect, but it must be honest. A buyer who finds higher repairs than you stated will stop trusting your deals.
Common mistakes
- Pricing cosmetic work and missing the roof, foundation or systems.
- Using national cost averages instead of local contractor prices.
- Leaving out a contingency.
More questions
How much contingency should I add?
Many investors add 10% to 20%, more for older homes or when you have not seen inside. Hidden damage is the most common surprise.
Can I estimate repairs from photos?
You can get a first estimate, but photos hide roofs, foundations and systems. Confirm with a walkthrough or a contractor before relying on it.
Should my repair estimate match the buyer’s?
It should be close and honest. Buyers will price their own repairs; an estimate far below theirs damages your credibility.