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Foreclosure Clean Up Business Advice: 2 Things You Should Not Do When You Start

Updated on February 7, 2010

In the foreclosure cleanup business, there are some definite do's and don'ts. Here we will divulge two things you should not do when you start your foreclosure cleaning business. Not only will avoiding these tactics save you money, they will save you a lot of headaches day in and day out as you run your business.

Do Not Price Foreclosure Cleanup Jobs Over the Phone

Why?

This is perhaps one of the hardest things to adhere to when you first open your doors for business. Following is “pricing over the phone” scenario to keep in mind if you are tempted to break this rule.

The "Price" of Underpricing

There's nothing like quoting a potential client one rice over the phone, only to realize that you've severely underpriced the job when you and your crew arrive on site. If this happens to you, you have two options : (i) complete the job at the price quoted; or (ii) raise your rate.

Either way, you lose because if you've severely underpriced the job, your business loses money. And, as foreclosure cleaning is dirty, backbreaking work, the last thing you want to do is work yourself to the bone only to be paid less than minimum wage . . . all because you priced the job wrong.

On the other hand, if you have to tell your prospective client that you didn’t price the job right and have to charge more, this is going to reflect negatively on you and your company in a couple of ways:

(i) the client will think that you don't know your business. After all, if you don’t know enough to price a job right, you must not be very good at it; and/or

(ii) they will thing that you’re trying to gouge them. Hence, even if they use you this one time, they will likely never call on you again because of what happened the last time. You never want to leave customers with a “bad taste” in their mouth. And, that’s what this does.

A customer’s line of thinking goes something like this, "Why did you quote me $750 over the phone, and now you're saying it’s almost twice that amount?"

This makes you the bad guy -- never a good thing when it comes to clients -- no matter how "right" you are.

There's a lot that goes into pricing foreclosure cleanup jobs. Hence, you should never do it over the phone. You need to see the actual job site to know exactly what’s involved because prospective clients often underestimate what is needed to do a job . . . and quite frankly, most of them have no idea of what it takes and the cost involved ((eg, equipment rental, manpower, dumping fees, etc.)

Advice On Taking Photos for Realtors

Taking before-and-after photos of a foreclosed property for realtors is a standard part of the job. Most realtors appreciate it and will not abuse this service. However, beware of those who use you to take pictures (and get estimates, which is a whole other subject matter), but who have no intention of hiring you for the job.

To avoid this, only take photos of properties of jobs that your company has been hired to do.

Otherwise, you run the risk of the realtor taking your photos putting them on someone else's estimate/bid. And, some will even post photos you take on their website.

If you tell them that you’ll “be happy to provide before and after photos of every job you complete,” it lets them know up front – and in a nice, professional way – that you don’t do it before you’re hired.

Learn other critical information like this on pricing foreclosure cleanup jobs and more.

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