What Should You Expect From Construction Costs?

Most people don’t have a strong understanding of what the cost of construction truly looks like. Today, I’d like to dispel some misinformation on the subject.

Do you want to know how much cash your house is worth today?

Compare Listing vs. Selling To Us

When homeowners hear the number I’ve calculated in terms of total cost of construction, they are generally shocked.

Most people have little to no idea what real construction costs can look like. Because of that, bad decisions can sometimes be made when people are considering an offer.

One factor at play here is the proliferation of home flipping shows on television. People who watch these shows form inaccurate assumptions about what these kinds of projects truly cost. Typically, people are off by 40% to 70% when making their estimate.

 

It’s very important that people keep an open mind when it comes to construction costs.

 

It takes a substantial amount of money to properly renovate a property.

People often miscalculate the time this kind of work will take. I build in between eight and 12 months of ownership when I’m calculating my numbers. If a rehab is involved, more than half of that time will be designated for renovation.

It’s very important that people keep an open mind when it comes to construction costs. It’s best not to have too firm an expectation before hearing the opinion of an expert.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Get More Info On Options To Sell Your Home...

Selling a property in today's market can be confusing. Connect with us or submit your info below and we'll help guide you through your options.

What Do You Have To Lose? Get Started Now...

We buy houses in ANY CONDITION in NY. There are no commissions or fees and no obligation whatsoever. Start below by giving us a bit of information about your property or call (516)262-5420...
  • This field is for validation purposes and should be left unchanged.

2 responses to “What Should You Expect From Construction Costs?

  1. Great video, Rich. You’re so right that the house flipping shows on TV are skewing people’s views on both costs and time. They grossly underestimate both the costs and the length of time. Often, the actual cost are more than double what they day and length of time 2 to 3 times what they claim.

    I have been lucky enough to be on 3 episodes of these (2 different TV shows). And, I have seen first hand how they do this. First, many of the products are donated and much of the labor is done at costs…and that’s how they calculate their costs.

    Also, this is “made for TV” so they don’t care about quality of work or durability (or drying time, etc.). All they care about is how it looks on TV. So, if it looks fine on TV,that’s all that matters…even if it doesn’t look as good in person. They will cut the doing certain basic things, number of coats, etc. That’s how they make it look so cheap and easy. Oh, and they will have all the contractors there at the same time walking on top of each other and working over night.

Leave a Reply

Your email address will not be published. Required fields are marked *