Better Bidding: 5 Tips to Maximize Your Property Preservation Win Rate
Success in property preservation relies on multiple factors, but effective bidding should be near the top of every vendor’s list. Here are our five key tips for effective bidding to help you maximize your profits for your property preservation work for the mortgage services industry.
Know what will get approved—and what won’t
While a property may have a variety of potential repairs and enhancements, to increase your chances of having your bid accepted you need to understand what the customer is most likely to approve as well as the items that are typically not approved, so you’re not spinning your wheels. In general, the items most likely to be approved will be focused on keeping the property safe and secure while the ones least likely to be accepted are aesthetic enhancements and higher-cost items or repairs. To help you better understand the common types of work orders you’re likely to bid on, we’ve summarized those you should be familiar with in another recent blog post. You'll want to familiarize yourself with the common types of work orders you’re likely to bid on,
Tell your story well
As a property preservation service partner in mortgage services, laying out the “why” behind your bid is as important as the actual number you land on. Our MCS experts describe it this way: If you have a million-dollar bid, you need a million-dollar story to go with it. What this boils down to is that you must be able to clearly spell out what you’re bidding for and why it’s necessary—with a price point that matches and makes sense.
Get precise with your property measurements
Not only does your bid need to be accurate, but so do your actual measurements. Don't just spitball it; get your quantities down. For example, if you’re going to include trimming overgrown bushes up against a house in your bid, don’t just include a photo. Get out your measuring tape to visually show the length and width to tell a more complete story and increase the odds of getting your bid accepted. Property-Preservation.us also offers an estimating tool with details on the appropriate measurement units to use with different repair types and roof measurement techniques as well as sample templates of some of the most commonly requested estimates.
Become proficient in using a repair cost estimator
As a property preservation vendor, you’ll need to provide itemized bids (similar to what an insurance adjuster would offer) using a cost-estimating software program or app. This means you’ll need to subscribe to a cost estimator and learn the nuances of the application itself. For example, with an estimator, you’ll have the ability to create templates you can use repeatedly in your bids to save time and avoid duplicating work.
You can also find cost-estimating videos on YouTube to help you get up to speed, and many apps offer proactive support to help vendors become experts at using them. If you’re not sure where to start in choosing a cost estimator, the Property Preservation Wizard (PPW) app links to a cost estimator you can use to get started. RepairBASE by Bluebook and Xactware can also serve as good starting points.
Our MCS experts have rounded up a list of the five items that are most and least likely to be approved.
Top 5 property preservation items most likely to be approved:
- Securing items (lock change/lockbox)
- Reglazing windows
- Pumping water
- Tarping active roof leaks
- Removal of overgrowth touching house/outbuildings (like heavy branches)
Bottom 5 least likely property preservation items to be approved:
- Replacing kitchen appliances
- Cosmetic painting
- Electrician/plumber/HVAC inspection request bids (not actual repairs)
- Bids for rental equipment, separate from work line items
- Full electrical rewire/replumbing bids
Remember your real costs
Every property preservation vendor wants to come in with the winning bid, but remember that getting the bid is only half the battle. The real win is maximizing your profits. This requires considering your real costs to complete the work—including indirect business costs you may not be figuring into your bid, like fuel for your vehicle, your phone, or insurance required to do business—and bidding accordingly.
Win bigger in property preservation with MCS
Learning the keys to effective bidding from every angle and putting them to work in your bids can help you secure more business and maximize your profits. Working with a trusted property preservation partner like MCS can also help you grow your portfolio and enhance your long-term success. To learn more about MCS and the benefits our property preservation network can provide, visit our listings or contact us at 866.563.1100.
