How To Negotiate With A Contractor For Lower Prices

Home improvement and construction projects are not cheap. Remodeling your home, or adding onto it are projects you and your family save for years to make a reality. So, when it comes to hiring a contractor and negotiating a price, there is a lot of pressure to get the price as low as possible.

But any negotiation is a dance of push and pull. It is important not to be too assertive, but being passive will almost never get you the price you want. So then, what are the best ways to negotiate with a contractor for a lower price?

In this article, we outline the 10 best ways to help you negotiate with your contractor for lower prices. Make sure you always get multiple estimates, and consider having a backup contractor if negotiations go poorly. Offer to purchase materials yourself. You should research your potential contractor, read reviews and testimonials. There may even be certain times of the year that are cheaper than others.

The key to successful negotiations is the reading you do beforehand. A negotiation will not work out in your favor without you doing lots of research and due diligence. While this may seem a bit daunting, the good news is, this type of research is common, and modern technology makes much of it simple. Before you enter a negotiation with your potential contractor for a lower price, make sure you read these 10 strategies below in order to ensure the best results.

One of the best ways to facilitate a successful price negotiation in any system is by having more than one option. In the case of a contractor, never get only one bid. In fact, you should never get fewer than three bids. This is especially true for more involved and expensive projects.

Procuring multiple estimates is helpful for several reasons. For one, it gives you a broader understanding of how much this type of work costs in your area. Also, when you have at least three quotes, you can compare and see if anyone is higher than the others. It is completely within your right to ask why a contractor’s price is higher than other bids. Having these other options is a great way to often shave a bit off the overall cost, especially in a competitive market.

While the goal is to form a fantastic professional relationship with a contractor, and ideally use them in the future if needed, it doesn’t always work out that way. Sometimes negotiations can get a bit heated. In other circumstances, the contractor’s bid might simply be out of your price range.

Regardless of the reason, it is always important to have a backup option. When you have put complete trust into a contractor before negotiating, and don’t have alternatives, you have a much weaker negotiating stance. If, however, you have another plan on the back burner, you can walk away without falling behind schedule.

Do your research on the company or individual you plan to negotiate with. Lucky for you, with modern technology, nearly every business and entrepreneur has reviews posted online. Check out some of these verified reviews, especially as they pertain to price, budget and going over the quoted price.

You might also be able to find how much this contractor typically charges for labor. It also gives you a good idea of what kind of results to expect. If you are paying top dollar for labor, you should expect premium results.

Believe it or not, the time of year can often impact the price. Depending on where you live and what the climate is, certain times of year can cost a lot more than others. There are several reasons for this. For one, at certain times of year, there may be fewer contractors available. Increased demand tends to yield higher prices.

There is also weather to consider. Projects can take more time and be far less enjoyable in extreme hot and cold temperatures. Labor costs might be higher during these times just due to the increased setup needs, and mandatory breaks. See if your project can wait until a contractor’s prices are the lowest.

It is very important that you communicate your budget before you and your contractor start on a project. By addressing that elephant in the room, your contractor can start providing you with options to get what you want at the price you can afford.

Sometimes, this might mean cutting corners or not getting exactly what you want. In some cases, your contractor might let you know it is impossible, and you might need to save up a bit more money. Regardless, having an open dialogue about budget is the best way to ensure your costs are kept within reason and as low as you need them.

When negotiating price with your contractor, be kind, but not a pushover. This can feel like a tightrope act at times, but it is important. Contractors work on your home, so the last thing you want is to have an argument or altercation, only to have to deal with them the next day. Or worse, if a conversation gets heated, it could set you back a lot if the contractor leaves and decides to call it quits.

On the other hand, make sure you are firm. When deadlines are not met, be persistent. Ask for updates in a polite but professional manner. The same goes for negotiating any prices. Come from an educated place, and present facts. Don’t make blind accusations when trying to get a lower price.

Another important thing to remember when negotiating with a contractor over price is to remain patient. Sometimes your contractor might say “no” when you ask about lower prices. But give it time. Revisit your inquiry after some time.

If the answer is no at first, consider an alternative route. One “no” should not completely shut you down. Instead, see it as an opportunity to come up with a new plan to lower your costs. There is often more than one way to save money on a construction project.

Another key negotiation tactic is collecting evidence that holds up. Any time you and a contractor agree on a price that you’re satisfied with, make sure you get it in writing. Handshake deals are fine and good, but you need that handshake to be backed up by writing and signatures.

This helps keep your contractor accountable. It prevents long delays and unforeseen expenses if the project continues. This is a great way to get locked into a price you are happy with.

Lastly, don’t be afraid to be straight up with your contractor. If the project is important to you but slightly out of your budget, say so. See if there are elements of the project you can do yourself. Buying your own materials is a good first step, but there is likely more you can do.

Perhaps some holes need to be dug, or paint needs to be stripped. Whether it is sanding surfaces or some minor demolition work, these little things can really add up. Any labor you do yourself will help the contractor lower his price.

If you are worried about the first quote your contractor gives you for an upcoming home improvement project, don’t panic. There are a number of ways you can negotiate with your contractor for lower, fair prices. For one, make sure you get alternative bids. This will help you find out the going rate for this work, and also provides you a backup plan if things with this contractor go awry. Also make sure you do plenty of research.

You can also consider buying materials yourself, and see if there is work you can do yourself before the contractor starts. There are even certain times of year when projects are cheaper than others. Just because your contractor says “no” to one way for you to lower your costs, it doesn’t mean there aren’t other ways to save money on the project.