Contractor Bids - What They Can Tell You

Most homeowners will seek 3 bids when doing any home project of significance to them. Often, you will have to ask for 4-5 bids in order to end up with 3. Once you have these 3 bids, what can you learn from them?

If you missed our article on Tips for Hiring Contractors, check out the article HERE.

1. The Low Bid

   1. If there is a price which stands out as being much lower than the others, you have yourself a low bid.

   2. Here are several things you likely won’t get with the low bid:

      1. Good Communication

      2. Proper Insurance

      3. W2 Staff (Real Employees of the Contractor)

      4. Decision Buy In (They ask for your opinion)

      5. Good Oversight of the Project

      6. Attention to Detail

      7. A clean work site

      8. A Good Quality end Product

      9. All of your Expectations Met

2. The Fisherman

   1. If there is a price which stands out as being much higher than the others, you have yourself someone fishing for a sucker (you).

   2. Here is what is on this bidders mind:

      1. I am a good contractor.

      2. I have too much work already.

      3. Let’s see if this customer bites at a really high price.

      4. If they bite, maybe I’ll turn down some other work I’ve already committed to.

      5. I’m confident that I’ll have work for a long time if I don’t win this bid.

3. The Fair Bid

   1. If you have 2 (of 3) bids which are around the same price, you likely have some fair bids.

   2. These are the contractors you will want to consider further. As discussed in our previous article linked above, here are a few key things to check:

      1. Do they have licenses in your municipality?

      2. Do they have all the proper insurance?

      3. Do they have good reviews online?

      4. What actual staff will be doing the work, and do they work as W2 employees of the contractor?

      5. Are they providing you a written contract which clearly outlines the scope? (Make sure to hire a construction lawyer to review this).

      6. Do they understand your expectations, and do you understand their expectations?

Really take your time to request and review contractor bids. Everyday homeowners experience frustrating problems with contractors.

Know Your Water Shut Off Locations

Do you know where you can shut off ALL the water to your home?

Location #1: At the Street

Location #2: Inside your Home

We recommend you know where both of these shut off locations are.

Should you ever find a major water leak from your homes piping, you’ll want to be able to quickly turn off this water.

News For Homeowners

These are a few current interesting news stories.

1. More homeowners are loosing their homeowners insurance. As natural disasters, floods, and other weather related events continue to occur, casualty insurers dropping policies. Learn more about this trend HERE.

2. Rocket Mortgage accused of illegal financial kickback scheme to Realtors. Apparently Rocket Mortgage was inducing Realtors to steer buyers to Rocket Mortgage in exchange for money. Read more about this scheme HERE.

3. Nashville, Tennessee home with warehouse style garage and property just hits the market. See more about the home HERE. Located in Williamson County and listed by Parks Compass, this is an unique home with many luxury home features.

The content of this newsletter is for informational purposes only and does not constitute professional advice. Always perform your own due diligence before making any financial decisions. There are no sponsors of this newsletter.