Wholesaling Glossary · Valuation

What Is Repair Estimate?

Also known as: Rehab Estimate

A repair estimate is the projected cost to bring a distressed property to the condition assumed in the ARV and buyer exit plan.

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Definition

A repair estimate is the projected cost to bring a distressed property to the condition assumed in the ARV and buyer exit plan.

In Depth

Repair Estimate explained

Repair estimates connect the property current condition to the finished value. If repairs are understated, the buyer margin disappears; if they are overstated, the seller offer may be too low to win. Wholesalers usually start with broad repair ranges, then improve accuracy with photos, walkthroughs, contractor input, and buyer feedback. The goal is not perfection; it is a defensible number that supports the MAO.

Example

Photos show roof, flooring, kitchen, paint, and HVAC needs. The team estimates $45,000 in repairs before calculating the seller offer.

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Related Terms

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After Repair Value (ARV) Maximum Allowable Offer (MAO) Comparable Sales (Comps)
FAQ

Frequently Asked Questions

Repair Estimate matters because it affects how a wholesaling team finds sellers, qualifies motivation, prices offers, or moves contracts to closing. Clear definitions keep callers, lead managers, acquisitions, and disposition working from the same playbook.
A trained VA can usually support the workflow around Repair Estimate: data cleanup, calling, CRM notes, follow-up tasks, buyer updates, and handoffs. Strategy, pricing, legal decisions, and final negotiations should stay with the business owner or licensed professional where required.

Put the playbook to work

VA Horizon places trained cold calling VAs and builds the systems behind Repair Estimate and the rest of your wholesaling pipeline. Book a 15-minute call to see how it works.

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