Chapter 5 · Pricing
Your price is a decision.
Make it on your numbers.
Most people in house flipping start by charging what the next person charges and hope it works out. This chapter builds your price from what a job really costs you, checks it against the market, and turns it into a menu, a quote and a habit of raising it.
Pricing is the biggest lever you have
Guess first. Then scroll and watch one job, with the example numbers you'll replace in a minute.
One job at $4,680.
The price, split
$4,680
Start from your numbers, not theirs
Your floor is the lowest price that pays you, your taxes, the materials and your share of the monthly bills. Below it, a job costs you money, however busy you are.
Pick one job to price
Your time
Billable time pays for the unbilled time too: driving, setup, quoting and texting.
Driving, loading, quoting, invoicing for this job
You're paid for 6 h but the job takes 7 h of your day. The price has to cover all of it.
Your pay and the taxes on it
Pay yourself like an employee first. What's left over after that is the business's.
Per hour, before taxes
Added to self-employment tax (14.1% of your pay)
Materials for this job
Supplies, chemicals, parts, fuel for the job. An example to start; put in your own.
Your monthly bills (overhead)
Costs you pay every month whether you work or not. Spread over your jobs, every job carries a share.
That's $23 a job, or $4 for every hour you're paid to work.
One job, all in
7 h × $25
26%
$790 ÷ 35 jobs
Profit after you're paid: repairs, slow months, growth
Price = floor ÷ (1 − cushion) = $3,744 ÷ 0.80 = $4,680
Why divide, not add 20%? Adding 20% to costs leaves you only 17% of the price.
What customers pay for full cosmetic flip across the U.S..
$3,744
Your floor
$4,680
Your price
Competitors are a check, not an anchor
Because you don't know their costs. They may have a paid-off truck, no insurance, a spouse's income, or be losing money and not know it yet. Your floor is yours; the market only tells you if there's room above it.
Full Cosmetic Flip
Your floor
$3,744
Your price
$4,680
Typical U.S.
$20,000–$50,000
National typical range for this trade, not your city. Set your city to look for a local one. Prices vary a lot by city.
Below your floor
Don't. Every job digs the hole deeper, and being busy hides it until the money runs out.
Floor above the market
Find the cost that's out of line, raise how many jobs you do a week, or sell a bigger job where your quality shows.
Room above your floor
Price toward the middle of the range or above, and let your quote, photos and reviews show why.
Ask the AI to check prices in your area
An AI search of local prices for this menu. Treat it as a starting point and check a few real businesses near you.
You sell results
Hourly pricing pays you less the better you get. A price for the finished job lets you keep what you gain by getting faster, and the customer knows the number before you start.
With practice, a better setup, the right tools
The job took 6 h. Now it takes 4.5 h. Same result for the customer.
Charge by the hour ($780/hr)
This job pays
$3,510
Per hour on the job
$780
Charge by the job ($4,680)
This job pays
$4,680
Per hour on the job
$1,040
Ways pros in this trade set the price
The Golden Rule
The 70% Rule
A conservative starting point. Buy at 70% of the After Repair Value, minus the cost of repairs, to leave room for holding costs, profit, and risk.
The Bottom Line
Holding Costs
Account for insurance, taxes, utilities, and debt service. Every day the house sits on the market, your potential profit shrinks.
Risk Management
Contingency Fund
Walls get opened, mold is found, electrical codes change. If you don't budget for the unexpected, you'll be funding it out of your own pocket.
Market Precision
Comparable Sales (Comps)
Your offer is only as good as your data. Look at what similar homes in the neighborhood actually sold for, not what they are listed for.
The money that leaks out of quotes
The visit to look at a job, the trip to the supply store, the extra work you find halfway through. Some of these are your call and depend on your market. Decide each one on purpose, then put it on your quote.
Your call
Do you charge to come look?
There's no one right answer. It depends on how busy you are, what customers near you expect, and how big the job is. Here are the three ways it's done and when each fits.
What's normal in this trade · it varies by market
Free estimates are common for small jobs, and a fee is more common for big ones or for visits that take real planning. It varies by market: check two or three local pros' websites or call one and ask how they quote.
Not sure? Starting out, free estimates usually win you more reps. Once you're booked out, a fee credited to the job is the common next step.
The math, whichever you pick
Minutes
1 in 3
Each one costs you about $29 of your time. With 1 in 3 booking, giving them free costs $58 for every job you win. That can be worth it while you build a name; just know the number.
Materials you buy for the job
Buying materials takes your time and money: the store run, storage, returns, and the wait until the customer pays. A markup pays for that. If you don't buy materials, skip this one.
You pay
$7,000
Customer pays
$8,750
Margin
20%
Markup is not margin: a 25% markup is a 20% margin. Many shops use a higher markup on small parts and a lower one on big-ticket items. Some states tax materials you resell; check in Chapter 3.
Work you find halfway through
Rot under the siding, a second stain, a customer who asks for "one more thing". A change order is a written price for extra work, agreed before you do it. Put this line on every quote.
Anything not listed above, or any problem we find once work starts, gets a written price first. We only do it after you say yes.
How to handle it on the day is in Customer Service.
Your quote, building as you go
Your House Flipping Co
Quote for [Customer name]
- Option 1: Light Flip$1,990
- Option 2: Full Interior Renovation$3,910
- Option 3: Heavy Rehab / Expansion$6,985
Good until [date].
Discounts cost more than they look
A discount comes straight out of the part you keep. Slide it and see how much more work it takes to stand still.
Price: $4,212
Left per job after you're paid: $468 (was $936)
To make what 10 jobs made, you need 20.
Offer less, not cheaper
Point to the smaller option. The price of each job stays the same.
Add, don't subtract
Throw in something that costs you little but they value.
Discount for a reason
Two neighbors on the same day save you a drive. Pass some of that on.
What you'll hear, and what to say
Scroll and each answer turns over.
The customer says
"I want more for my house than what you offered."
Switch from price to terms (e.g. speed, 'as-is' condition).
Keep scrolling for the fix
You say
"I understand. Based on the repairs this home needs to bring it to current market standards, my offer is what allows me to make the project work. What is the most important factor for you in this sale?"
The customer says
"You're just going to flip it and make a killing."
Be transparent. Risk justifies the margin.
Keep scrolling for the fix
You say
"You're right, that is the goal. But I'm also taking on the risk of the rehab, the financing costs, and the market changing while I own it. This is a business deal for both of us."
The customer says
"I heard houses in the area are selling for much more."
Always refer back to the specific condition of the property versus 'finished' comps.
Keep scrolling for the fix
You say
"That is true for homes that have been fully renovated. This home requires significant work to reach that standard, which is why my offer reflects the current condition of the property."
Your price is never finished
Your costs go up every year whether you raise prices or not. Two habits keep you ahead: watch how many quotes say yes, and review your prices once a year.
How many quotes say yes?
60%
Some say no. That's healthy.
Hold your price. Test small raises on new customers and watch this number.
"Nearly everyone says yes means you're too cheap" is a common rule of thumb, not a study. Your own trend matters more.
Test a raise
Raise your price on the next 10 new quotes only. Keep the yes-rate and compare.
$4,680 becomes $4,915
$235 more a job, all of it kept: that's 25% more of what's left after your costs.
Review it once a year
Fuel, insurance, supplies and your own pay go up. If your price doesn't, your cushion shrinks every year without you noticing.
Your floor moves from $3,744 to $3,931. Same cushion: $4,915.
Raise prices for new customers first, and give regulars a month's notice.
Mastering the Trade
Video training
Learn how to estimate costs and evaluate deals.
Core skill
Rehab Estimating 101
Real Estate Rookie · 8 min · How to Estimate Rehab Costs (Flipping Houses and BRRRRs)
Learning to walk a property and spot costs before you buy is essential.
Gear used in this video
We may earn a commission from some links. It never changes what we recommend, and we'll tell you when the free option is enough. As an Amazon Associate, BeProEx earns from qualifying purchases.
Common Mistakes
Where flippers fail
These mistakes cause most first-time flippers to lose money.
1Skipping the professional inspection.
Foundational issues, major plumbing, or electrical work can destroy your entire budget.
Instead: Always pay for a licensed home inspection during the due diligence period.
2Underestimating the 'time' cost.
Interest on your loans and property taxes accumulate every single day.
Instead: Add a minimum 20% buffer to your calculated holding time.
3Over-improving for the neighborhood.
You can't sell a luxury flip in a budget neighborhood; you won't get your money back.
Instead: Research the 'top of the market' for that specific street and cap your upgrades accordingly.
Recommendations
Project and Financial Tools
Keep your numbers clean and your projects on track.
Project Management
You need to track tasks, contractor payments, and project timelines.
Free way: Spreadsheets (Google Sheets/Excel).
When it's worth paying: When you are managing multiple concurrent projects.
Incredibly flexible for building custom deal trackers and project pipelines. Not the right fit if People who want 'off the shelf' construction management software.
We may earn a commission from some links. It never changes what we recommend, and we'll tell you when the free option is enough. As an Amazon Associate, BeProEx earns from qualifying purchases.
Your Move · Do This Today
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Your business plan, prices
Your prices, on your numbers
- Floor for full cosmetic flip: not saved yet
- Three-option menu: not saved yet
- On every quote: nothing added yet
- Yearly price review: not set yet
Question 1 of 3
Why is it recommended to include a 15–20% contingency fund in your rehab budget?
Next · Chapter 6
Get Clients
Your prices are set and you know why. Next: getting them in front of the people who'll pay them.
Chapter 5 · Pricing
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Chapter 5 · Pricing
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