The best way to get a better price from a contractor is to let him know that you want to work with him.  Ask him if the price you received is the best he can give.  Ask if there are ideas he has to be able to be more efficient or use other materials or fixtures to save costs.  Ask these questions in a friendly way so that you aren’t creating an adversarial relationship.  You want your contractor to feel like you’re treating him as an ally or partner to find a workable solution for your project.

Another way to approach the negotiation is to give your contractor your budget.  If you’ve found your contractor by way of referral, you might want to do this up front.  The conversation then centers around the scope of the work and how you can get the best value for the money.

My wife, Brenda, and I saw this first hand in our faux painting business.  The clients who called and gave us their budget got more for their money than those who just had us give them a bid proposal.  Brenda could take a working budget and match it to the finish that gave the best result.  Sometimes she could adapt her technique to give a similar look in 1 layer instead of 2.

And speaking from a contractor’s perspective, a client that starts a conversation and treats us as a partner is easier to work with than those who start off with confrontation and making demands.  The good clients will get extra services and things done for free.

Remember to ask for references and follow up.  But once you find a contractor you want to work with, give him a budget and let your negotiations be a friendly conversation.

Money magazine had a recent article about how to haggle with a contractor.  I talked about the pitfalls of getting 3 bids in a previous post.  In this post I’ll discuss the idea of offering incentives.

The Money article suggests 3 strategies.  The first has some advantages.  The second is a bad idea & the third might save you some money.

Paying the subcontractors directly:

You may want to ask about this, but not because of any cost savings.  The theory is that you’ll save money because the contractor won’t add his markup on to what the subcontractors charge.  however, some contractors will ask the subs to add on a percentage and kick it back to the contractor.  I know that for some clients this seems to be just wrong.  But you will likely save a little money with this arrangement.  The contractor needs to make a profit and if he has to handle the payments to the subs he will likely charge more than if he lets you pay the directly and asks for percentage from them.

If your contractor will allow you to pay the subs directly you may want to consider it for a different reason.  If you pay the sub directly they will receive their money sooner & as a result may be more diligent and eager to do quality work.  If you do pay the subs directly be sure to ask the contractor how many jobs they’ve done for him.  If he can’t vouch for them, screen them the same as you do the contractor–ask for references.

Ask the contractor to negotiate a lower price from his subs:

When I worked as a contractor and people asked for a lower price I wanted to reply, “What part of the project to you want me to leave out?”  In a construction project there are countless ways to cut corners.  Just tune in to the popular Holmes on Homes show to witness some of the nightmare tales of shoddy work and the problems it can cause.

You can ask the contractor if there are less expensive materials.  For example, you can buy $150 kitchen faucets and $400 kitchen faucets.  Ask questions to find out if the price is based on better quality or merely a trendy look.  It’s a good idea to ask your contractor about the specifics of the products and methods he plans to use.  If you’re dealing with a knowledgeable professional you should be able to determine the best value for your project.

Be flexible about timing:

Exterior work is often cheaper during the fall.  You might get a better price on interior work in July and August.  But if your contractor does both interior & exterior work you might offer to let him stretch out your project and work your job in between the lag time between other jobs.  The danger with this offer is that the cost savings might not be worth the hassle of living in a construction zone for an extended period.

In the end, it’s often worth the money to pay for a job done right and finished on time.

Everyone always says, “Get 3 bids”.  In my experience this process often leads to disaster.  In the business I’ve been in with my wife–faux finishing–we would usually get beat out on price by other companies.  If we were the lowest price out of 3 bids we figured we’d made a mistake in our evaluation of the job.  When we had jobs backed up 6 weeks or more Brenda began asking prospects if they were getting other bids.  If they said “yes” she would give a price over the phone and not waste her time giving a design consultation in person.

We still get calls from people who took a lower bid and regretted it.  One company took over the client’s dining room to paint the doors and drawers of the kitchen cabinets.  The dust from the sanding went through the entire house.  Often we will get called in to fix those low bid jobs after the client fires the contractor.

If you do decide to have contractors bid on a project make sure the scope of work and kind of materials to be used is clearly defined.  The more complex the work to be done the more detailed the proposal should be.  If one contractor is bidding ceramic tile and another is bidding travertine stone, there will be a significant price difference.

And in all cases of hiring a contractor, ask for references.  And take the next step to call the references and talk to them about how the contractor was to work with and if they are pleased with the workmanship and the process of getting the work done.  Did he keep the site clean?  Did he finish in a reasonable time frame?  Did he show up when he said he would?  The intangibles are important if you’re going to have someone working in your home.

My preference when hiring anyone to provide a service is to ask someone I trust to give me a referral.  I may get a couple of names and then I talk to each and make my decision based on their references and how confident I am of getting the best value.  I’m much more concerned to get a job done correctly and the least amount of hassle than I am of getting the lowest price.  I’ve heard it said that the joy of a low price last only a brief time.  The bitterness of a poor quality job lasts for years.

Remember the 8-second rule: That’s all the time you have to create a winning first impression. Here are some simple yet significant ways to maximize your home’s appeal.

Exterior

* Keep the grass cut and remove all yard clutter.
* Weed and apply fresh mulch to flower beds.
* Apply fresh paint to wooden fences.
* Tighten and clean all door handles.
* Clean windows inside and out.
* Powerwash home’s exterior.
* Ensure all gutters and downspouts are firmly attached and functioning.
* Paint the front door.
* Buy a new welcome mat.
* Place potted flowers near the front door.

Interior

* Evaluate the furniture in each room and remove anything that interrupts “the flow” or makes the room appear smaller. Consider renting a storage unit to move items off-site.
* Clean and organize cabinets, closets and bookshelves.
* Clean all light fixtures and ceiling fans.
* Shampoo carpets.
* Remove excessive wall hangings and knick-knacks.
* Repair all plumbing leaks, including faucets and drain traps.
* Make minor repairs (torn screens, sticking doors, cracked caulking).
* Clean or paint walls and ceilings.
* Replace worn cabinet and door knobs.
* Fix or replace discolored grout.
* Replace broken tiles.
* Replace worn countertops.

Special details for showings

* Turn on all the lights.
* Open all drapes and shutters in the daytime.
* Keep pets secured outdoors.
* Buy new towels for bathrooms.
* Buy new bedding for bedrooms.
* Replace old lamps or lampshades.
* Play quiet background music.
* Light the fireplace or clean out the ashes and light a candelabrum.
* Infuse home with a comforting scent, such as apple spice or vanilla.
* Set the dining room table for a fancy dinner party.
* Vacate the property while it is being shown.

Now that you’re going to sell your house, that toleration list of repairs and updates looks like a big pile of money just waiting to fly out the door.  So what do you fix?  Here are the areas that will give you the best chance to let your house make that all-important first impression.

Curb Appeal

• Clean the front of your house.
• Trim up bushes and weed the flower beds.
• Edge and mulch the beds.
• Green up the grass with a nitrogen-rich fertilizer.

Update a bathroom

• Replace outdated faucets with more stylish ones.
• Have grout professionally cleaned, or regrouted.
• Install beadboard wainscoting over dated tile walls.
• Replace worn toilet seat.

Spruce up the interior

• Paint will conpletely transform the interior.
• Replace outdated light fixtures.
• Install new or clean old  switch and outlet covers.
• Have carpets professionally cleaned.
• Touch up nicked or worn trim.
• Wash windows.

Revive a dated kitchen

• Deep clean cabinets if they are in good condition.
• Painting cabinets your kitchen a fresh look.
• Replace cabinet pulls and hinges with brushed nickel ones.
• Overlay Formica countertops with  granite or stone.