So you own a home! No matter if it’s your primary residence or if it’s your twentieth rental property, that’s awesome. But as everyone knows, there’s this little thing called the “joys of homeownership”. Things break. Appliances need fixing. The house might need a series of cosmetic, mechanical, or structural upgrades or repairs. As a homeowner, you might be tempted to do a lot of things yourself to save on costs. But let’s be honest, sometimes it’s best that a professional does certain jobs. But how exactly do you find, vet, and hire the right contractor for the job? In this post I explain how to find the right person for your home project.
A couple of times a week I get asked by friends, past clients, and other realtors who I recommend for plumbing, or electric, or roofing. And I happily provide references because I have personally vetted dozens of contractors and have a pretty substantial list of who to call for any project. But that’s not the reality for most homeowners who make mistakes that can cost them THOUSANDS when it comes to contractors.
So tip number 1 is where to find the right contractor. Most people, including me just a couple of years ago, would go onto google and type in “electrician in Charleston” and then call the first couple of numbers that popped up. This is a terrible mistake. In fact, you’re best off forgoing a google search entirely. And here’s why.
You see, in order to appear on the first page of Google, these companies needed to spend thousands on either paid advertising or on search engine optimization. A ton of resources and money goes into marketing their business. Many of these companies have dozens of employees who go around every day on appointments. But as you guessed it, this isn’t cheap for the company. They have tons of overhead, from payroll to insurance to marketing to maintaining a fleet of vehicles to human resources and more. They need to pay for all of this, and to be completely honest, this is translated to you, the consumer. Nine times out of 10, these companies will bid jobs for far more than other companies. They know that you’ll still go with them because you can’t find these mystical other companies. But trust me, quality contractors at an affordable price ARE out there.
So where do you find them? To be completely honest, word of mouth is the best way. Call up your realtor. Call up a local investor you know. Or, better yet, and this is huge, go onto local facebook groups in your area and just make a post that you’re looking for a certain contractor. Usually you’ll get a dozen references this way, and usually you’ve never heard of these companies. These are folks who are making an honest living. They live and die by referrals and word of mouth because they cannot afford the massive advertising and marketing budget that the big guys have.
Now, there are some drawbacks to this strategy. Ideally you can find a tradesman who can be on call whenever you need them, but the reality is that smaller companies work during normal hours on Monday through Friday. Larger companies might have after-hours support which is HUGE if your air conditioning goes out on a 100 degree weekend. Also, larger companies you find on google might have receptionists who take calls and schedule technicians, so you can typically talk to someone immediately. For smaller companies, the receptionist is usually the owner, and he or she is probably working on the job and can’t take your call immediately. As an aside, you should always verify that the contractor is licensed through your state and that they carry proper insurance, no matter the size of the company.
So tip number 2 is just as important as tip number 1. You need to get quotes from multiple contractors.This is truly the only way to know that someone isn’t taking you for a ride. Now, this next minute is probably going to be highly controversial even though I don’t mean it to be. Some people may wholeheartedly disagree with me and that’s totally fine.
Now, I want to point out that price isn’t everything. A lot of times going with the cheapest guy is going to cost you just as much as going with the most expensive guy because you’re going to have to hire someone else to fix his mistakes. Finding someone who has more of a value proposition than just price is paramount. Look at his reviews. Ask if there’s any past clients or current clients you could contact. Even though these contractors might not have a website that appears on the first page of google, they’ll probably still have google reviews and a social media presence. Do your due diligence, just like you did when you bought your home to begin with.
Now, I’ll be completely honest. Contractors HATE when you shop around. Think about it from their perspective: It takes time for them to come out, walk around, and go back to the office and write a bid, only for them not to get the job. Now, I would personally not let the contractor know that you’re shopping around until they’re already physically there, or until after they have left and are about to write a quote. However, you should never lie about this if you’re asked ahead of time. But understand that letting them know that you’re shopping around will put in the back of their mind that they now have to compete with someone, so maybe they won’t upcharge you on materials and might be willing to cut their margin to what they know what their competitors are charging. The reason why I say to wait to let them know you’re shopping around until after they are at the physical job site is because sometimes contractors just won’t show up if they know there’s competition. Again, the intent here is not deception, but rather smart negotiation and giving you leverage.
And when it comes to comparing quotes, you have to compare apples-to-apples. Make sure you get a quote that separates labor from material so you can accurately compare multiple quotes. Also ensure the scope of work is the same between contractors. If one contractor says you need to do something, and another doesn’t mention it, this is a good time to bring it up! Ask the contractor who omitted something why it was omitted. It might have been an oversight, or he might explain why it wasn’t needed to begin with.
And say you do want to go with a contractor but he’s just too pricey. Ask if he’d consider matching a different quote you received. Sometimes contractors are willing to accept jobs that are less than their normal margins if it means just staying busy. Some work is better than no work. You as a homeowner have a lot more leverage to negotiate price when you have a written quote from a different contractor.
And here’s my last and final tip. Be an honest and trustworthy person. At the end of the day, most contractors are just looking for a way to earn an honest living and put food on the table.I promise you the thing that they’re most worried about is you not paying them. You have the money and they’re providing a service.
Now are there unscrupulous contractors who will take advantage of people’s ignorance and overcharge? Absolutely. But not all contractors are like this, just like not all homeowners are trustworthy individuals who will pay a contractor for services rendered. Following tips 1 and 2 will probably minimize your exposure to untrustworthy contractors. I will caveat this by saying that unlike other professions such law, real estate, or medicine, your contractor does not owe you any sort of fiduciary duty. They are looking out for their best interests and bottom line, so always be on guard.
Now, if the price makes you do a double take, just remember you’re not just paying for materials and cheap labor. You’re paying for someone’s years, if not decades of experience. That isn’t going to be cheap. That isn’t to say you should throw caution out of the window. Entering a relationship with a contractor should be met with a healthy dose of skepticism. Make sure there is always a contract in place.
Typically, you don’t want to pay for more than 50% of the project up front and most of the time it’s less. If there’s more than two installments of payment, ensure that you save a good chunk for the end to ensure that they complete the job. Another way to save some money is to buy materials yourself and just pay for labor. This prevents the contractor from upcharging the cost of materials. But when it’s time to pay, you need to pay. Worse case scenario a contractor puts a mechanics lien on your house because of an unresolved contract dispute.