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Foreclosure Cleanup Bidding Advice: Win More Foreclosure Cleaning Jobs with These Simple Strategies

Updated on February 8, 2010

Foreclosure cleanup is a very lucrative business to be in, especially right now. However, as with any business, knowing what to do – and what not to do – can mean the difference between landing a job, or not. Following are three things to keep in mind when bidding on foreclosure cleaning jobs that can help you land more work.

1. Know Where You are on the Payment Totem Pole: Subcontracting is big in this real estate services industry. And, what you will be paid depends heavily on where you are on the totem pole, so to speak. For example, is the person hiring you the initial contractor, or a subcontractor.

Pricing foreclosure cleaning jobs can be tricky because many times what a foreclosure cleanup company will be paid for a job depends on what HUD’s guidelines are.

What is HUD and Why Knowing Their Guidelines are Important in Pricing Foreclosure Cleaning Jobs

HUD is the acronym for the Department of Housing and Urban Development. It is the largest single seller of real estate in the US, which means a great deal of your work should be coming indirectly from HUD.

You will work many jobs that don’t come your way via HUD, but if you’re not getting a huge slice of those HUD dollars by targeting professionals who deal in HUD properties (HUD brokers and realtors, banks and mortgage companies who do FHA loans, larger property preservation companies with HUD contracts in place), you are totally missing the boat in foreclosure cleanup.

HUD will be your bread and butter in this business. Remember this, particularly if you are a subcontractor because you may want to price a job differently than if you were the main contractor on the job.

2. Bid Only On What You Can Do: Did you know that you don’t have to bid on all portions of a foreclosure cleanup job? It’s true. Many times when a prospects contacts your company for foreclosure cleanup work, they may want you to, for example:

Remove Trash and Debris


Repair Wooden Floors

Hang Sheetrock; and

Cut the Grass.

If you’re not set up to repair wooden floors, simply tell the prospect that you won’t be bidding on that portion of the job, but that you can gladly refer someone who can handle this for them.

Note: It’s a good idea to network with home improvement professionals for exactly this reason. You can throw work their way, and they may be able to throw work your way. Also, this helps you to still service your customers completely, which gives them another reason to call on you.

3. Upsell Clients: This is so easy to do, especially in this business. What is upselling? It’s simply getting more dollars out of each job. For example, if a customer contacts you about simply trashing out a property, but you see that windows are broken and the lawn needs cutting, you can note that in your initial estimate and give quote them a rate on doing this too.

The more services you can provide for a client, the more they will use you because it means that they don’t’ have to call three different companies to get three different types of work done.

Learn more about how to price and bid on foreclosure cleaning jobs.


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