Negotiating 101: How to Get the Best Price From a Contractor

Whether you need a home built according to a full set of custom home plans or just a few rooms repainted after years of neglect, you will probably find it pays to use a contractor rather than to do the work yourself. Many homeowners avoid contractors due to cost, but contractors are very open to negotiations, and you can save quite a bit of money once you know how to negotiate with a building or home-improvement contractor.

First of all, do not hire the cheapest contractor you can find. The cheapest contractors are, as a rule, also the least experienced and the least well-funded. Make sure to find out whether any particular job requires the use of a licensed contractor, and if so, make sure the contractor you hire has a valid license. Otherwise, you risk legal penalties that can cost you more than the fees a reliable licensed contractor charges for your original home plan.

Get recommendations from neighbors, and check with the Better Business Bureau, your local consumer protection authority, and online review sites to make sure there are no serious complaints against the contractor whose services you are considering.

Next, decide on at least three reliable contractors and get bids from each one. Compare the bids carefully to make sure they cover the same scope and quality of work before you decide to pursue any one of them further. Do not be afraid to contact the contractor for more information about any part of any bid. Never leave repairs to the last minute, as you will then be confronted with an emergency situation that will change your position as far as negotiations are concerned.

Once you have selected a reliable and properly certified contractor for the task at hand, you should remember that it is a customer’s market and negotiate accordingly. Put down as little money as possible at the beginning of the job, and make sure that the contractor agrees to meet certain milestones before any further payments are made.

Try to be at home when the work is being done, or have someone who understands home remodeling present in order to check the work and the quality of the materials being used during the course of the job. If you have agreed on certain brands of materials that have warranties, do not let the contractor begin work until you have received the warranty documents for the materials.

Finally, make it clear that you have the right to have an outside inspection done before you make any final payment or sign off on any completed work. At the very least, make sure to thoroughly test and inspect the contractor’s work yourself before you agree to consider it complete.

Miguel Salcido is an avid blogger, father of 2, and recent proud homeowner. He loves studying architecture, home design, decor and house plans. He plans to one day buy a modern house plan to build his dream home.

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