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?
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 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.