There is no such thing as too much money. Even if you have plenty of everything and don’t experience the need for money, you are still likely to spend less rather than more on a home renovation project. When working with general contractors a lot of homeowners don’t realize that it’s possible to negotiate the final cost of the project. Today you will learn how to become a pro price negotiator with general contractors with several tips below.
Can I negotiate?
Yes, you can. But, you need to act like a price negotiator who doesn’t, in fact, negotiate the price. Every time you purchase a product/service not from the mass market, you can always haggle over its cost. Of course, you need to be careful not to get your contractor angry because mad contractor equals madly awful result.
So here are the tips on how to become a price negotiator and not arise any suspicion.
- Say you’re getting multiple bids.
Once your perspective contractor understands that you are getting quotes from several general contractors, he/she will be willing to hold you on their side and so will be ready to offer some cost reductions. By announcing that you’re looking everywhere you state that you do care about the price, that there is a competition around your project, and that you already know what the market price is. - Ask to “value engineer” the plans.
If you already have your budget calculated and your contractor offers a higher cost, then you have no other choice but to become a price negotiator. Ask your contractor about the ways you can save without lowering the quality of your renovation project. Some general contractors can come up with more affordable yet perfectly matching materials, while others may even lower the cost of their services (this is common if the contractor really likes your project and you personally). - Offer to do something on your own.
People with tight budgets often use price negotiator tactics on the stage of deconstruction. For instance, you can strip the walls, remove the tiles, deal with debris and wastes, paint the walls, etc. Such tactics will give your perspective contractor the idea that you do have a tight budget and that “milking” you will make no good to none of you; secondly, it will lower the cost of the home renovation project and let your contractor take the easier part of the job. - Purchase the supplies.
Most general contractors offer to purchase the required supplies and then just include their cost into the final bill. As a rule, contractors don’t care about the price (because you’re the one paying) and so don’t look for the best deal. In order to save on supplies, you can offer to buy everything yourself. Again, act as a price negotiator and not just state your will; explain that you need to save and in most cases, your contractor will meet you halfway. Of course, in this case, triple check the needed materials and supplies so that you don’t have to buy more cement or paint later. - Go for low season timing.
The busier the contractors are, the higher the cost of your home improvement project will be. And, on the contrary, if you hire general contractors during the slow season, you can negotiate a better price and generally get lower quotes. As a rule, low season for contractors is during the cold season and on holidays.
A contractor is your ally. Once you approach the cost situation as if your contractor were your enemy, you are likely only to get disappointed, get your contractor angry, and receive no positive results. Instead, act as a pro price negotiator and demonstrate your contractor that you are allies. Explain that you don’t want to understate his/her payment for the completed project, yet you need to save as much as possible. Such respective and honest explanation of your situation will likely soften contractor’s heart, and he/she will help you get the total cost down.
Be careful!
Don’t get caught on the hook of the lowest price in the market! Lowest price in most cases equals bad results and incompetent contractors. Make sure that you go for the average cost available in the market and choose the middle quote you get. And don’t forget to check these 3 documents when your hire general contractors.
