Determining Rehab Level

When planning to rehab your house it is important to consider the level of rehab you would like to complete. Will you be simply fixing what is broken or will you complete a simple, minor, or major rehab? Kitchens, bathrooms, HVAC systems, roofs, and plumbing will eat up most of your budget. Therefore, it is important to determine what level of rehab you are going to perform before initiating work. This way you will ensure that you have enough money to cover the expenses you need or want to repair.

When determining the rehab level you wish to perform it is important to consider factors such as the age of the home, the current condition, and the real estate market condition. This way you can figure out what items need to be replaced and what can stay.

Determining Your Budget

When fixing what is broken you will be doing exactly that. Your budget will not include funds for new installations or remodeling of any sort. This is the most economical "rehab" because you are not taking into consideration more expensive items, such as kitchens or bathrooms. Depending on your area the cost per square foot may run you anywhere from $10 - $20.

A simple rehab includes a complete remodel of the house with the layout of the home remaining the same. You may include one large item such as a new roof or a new HVAC system. Depending on your area the cost per square foot may run you anywhere from $20 - $35.

A minor rehab includes all the items discussed for a simple rehab, however, it also allows for the relocation of a few walls and minor plumbing and electrical upgrades. Depending on your area the cost per square foot may run you anywhere from $30 - $50.

A major rehab includes a total gut job and it also allows for major floor plan changes, new electrical, plumbing, new flooring, roof, HVAC system, windows, kitchen, bathrooms, new additions, and more. Depending on your area the cost per square foot may run you anywhere from $50 - $65.

Contractors

Once you have determined the level of rehab you want to complete and determined your budget, you can then request estimates from contractors. You will be able to compare you budget to the estimates you receive from contractors to determine whether their estimate is fair. Be sure to consider the area in which you are rehabbing as these factors greatly influence construction bids. A rehab in Washington D.C. will cost more than the same rehab being performed in a suburban city.

When selecting a contractor be sure to request that they are insured. They should be able to provide a Certificate of Liability Insurance. Additionally, ensure that they have a contractor's license. You can easily verify whether a contractor is licensed by visiting your state's Department of Professional and Occupational Regulation. In the state of Virginia you can visit click here to visit the Virginia DPOR website.

Be sure to discuss whether permits will be needed in order to perform the work that you are looking to do and whether your contractor's bid includes such fees. Review bids carefully to ensure you are comparing apples to apples. Some contractors may include all necessary work from demolition to collection of debris and disposal where as other contractors may offer a lower bid and tack on extra cost for additional services.

Time Frame

The level of rehab will impact the amount of time the rehab process will take. As you may have already guessed, a simple rehab will take less time than if you opt for a major rehab. However, time frames should be discussed with your contractors as they can give you a better estimate of how long a specific project will take. Often, the faster a job is performed the more workers will be required which will then result in a higher estimate from your contractor. Thus, you may have to weight whether a quick job for more money is most important over a longer job for less money.

Also be sure to budget for miscellaneous expenses if you will not be living at the property such as monthly mortgage payments, insurance, taxes, utilities, and HOA if applicable.

At We Buy Houses Cash DMV we are professional house buyers and perform rehabs on the majority of the houses we buy. We give no obligation offers within 24 hours. If you are in the market to sell your house that may need some work visit us at We Buy Houses Cash DMV to get your no obligation offer.