Best Way to Estimate Repairs
Repair estimation is the second most important skill in wholesaling (after running comps). Underestimate repairs and your buyers lose money and trust. Overestimate and you undervalue deals or scare buyers away. Here are the best methods, from quick screening to detailed analysis.
Level 1: Per-square-foot screening (2 minutes)
Use per-square-foot ranges to quickly determine if a deal is worth deeper analysis. Cosmetic: $15-$25/SF. Moderate: $25-$45/SF. Full gut: $45-$75/SF. Multiply by the home's square footage for a ballpark total. If the deal does not work at this level, move on.
Level 2: Category breakdown (15-30 minutes)
Walk through each major category and assign a cost based on what you observe or know about the property:
- Kitchen ($8,000-$25,000), Bathrooms ($5,000-$12,000 each), Flooring ($3-$8/SF), Paint ($1.50-$3/SF interior), Roof ($6,000-$15,000), HVAC ($4,000-$10,000), Electrical ($2,000-$8,000), Plumbing ($2,000-$8,000), Foundation ($3,000-$15,000), Exterior/Landscaping ($2,000-$8,000)
Total the categories, then add a 10-15% contingency. This is the estimate you present in your deal package.
Level 3: AI-powered photo analysis
AI repair estimation tools analyze property photos to identify condition issues and generate detailed cost estimates by category. Upload photos of every room, and the AI assesses flooring condition, cabinet quality, fixture age, wall condition, and more. This provides a data-driven estimate that supplements your visual assessment.
Level 4: Contractor walkthrough
The most accurate method: walk the property with a contractor and get written bids. This is what your buyer will do during their due diligence. For your first few deals, consider walking properties with a friendly contractor to calibrate your own estimates against professional bids.
Common estimation mistakes
- Ignoring hidden systems: Electrical, plumbing, and HVAC are expensive and easy to miss
- Forgetting permits: Structural and system work requires permits ($500-$3,000)
- No contingency: Always add 10-15%. Surprises are guaranteed.
- Wrong exit strategy: Flip-grade repairs cost 30-50% more than rental-grade. Match your estimate to what the buyer will actually do.
Matching repairs to exit strategy
| Category | Rental Grade | Flip Grade |
|---|---|---|
| Kitchen | $8,000-$12,000 (refresh) | $15,000-$25,000 (full remodel) |
| Flooring | LVP throughout ($3-$5/SF) | Hardwood or premium LVP ($6-$10/SF) |
| Countertops | Laminate ($1,500) | Granite/quartz ($3,000-$5,000) |
| Appliances | Basic ($1,500 set) | Stainless package ($3,000-$5,000) |
Bottom line
Use per-square-foot screening to filter deals in 2 minutes, category breakdowns for your deal package analysis, and AI tools for data-driven estimates. Always add contingency, always match the repair scope to the buyer's exit strategy, and err on the side of conservative estimates that build buyer trust.