Cleaning Foreclosures: 2 Things You Should NOT Do In This Biz

Jan. 14, 2009 - PRLog -- If you want to start a business cleaning foreclosures, there are some definite do's and don'ts. Here we will focus on two things you should not do if you own or are about to start a foreclosure cleaning business.

1. Price Jobs Over the Phone: This is perhaps one of the hardest things to adhere to when you start a foreclosure cleanup biz. Following is one pricing scenario to keep in mind if you get tempted to price foreclosure clean out jobs via phone.

The "Price" of Underpricing: There's nothing like quoting a potential client a price over the phone, only to realize that you've severely under priced it. If you do, you have two options: (i) complete the job at the price quoted; or (ii) up your rate.

Either way, you won't be happy because if you've severely under priced it, you will lose money on the job. And, foreclosure cleanup jobs are tough work - the last thing you want to do is work yourself to the bone only to be paid less than minimum wage.

If you have to tell your prospective client that you've under priced it and need to raise the rate, this is going to make reflect negatively on your company in two ways: (i) the client will think that you don't know your business; and (ii) they will look at you as a price gouger.

Their line of thinking goes something like this, "Why did you quote me $500 over the phone, and now you're saying 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 a job when you run a business cleaning foreclosures. Don't do it over the phone.

2. 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 estimate, which is a whole other subject matter), but who have no intention of hiring you for the job.

Only take photos of properties of jobs you have been hired to do. Otherwise, if you turn in estimates with photos attached, the realtor can simply take them and put them on someone else's estimate/bid (or on their website, etc.).

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To learn more critical information about what to do -- and more importantly -- what not to do when starting a foreclosure cleanup business, visit http://Start-a-Foreclosure-Cleanup-Business.com.