When considering a short sale the lender must take into account the current condition of the property. If the property does not sell at foreclosure sale they will be left with the property and the decision to repair the property or to sell the property at a discounted price. As a general rule lenders do not like to invest money into REO’s and do not want to sink more money into repair costs.

It’s your job to list all of the repairs needed so the property can compete the the large number of homes on the market that are in near perfect condition. So Guru’s and so called experts will tell you to exaggerate your repair costs to better serve you goal of a low purchase price. Consider the source and their integrity.

When estimating repairs you should use number that are realistic but on the high end of the estimate spectrum. Home Depot is a great resource. Simply find out the cost to have Home Depot do the work (if applicable) and these numbers are realistic, albeit on the high side. In practice you would want to contract the work through a different source at a much lower price. Still, this allows you to use accurate repair numbers and maintain your integrity.

See the sample repair cost estimate below.