I am trying to learn how to properly estimate rehab costs and negotiate with contractors. I’ve heard a lot about contractors taking advantage and overpricing. Any advice would help.
@Account Closed Contractors are businesses . They charge what the market will bear . If you get 3 estimates for work you will get 3 different prices . Prices are also area specific , if you live in an area with a high cost of living , you will pay more .
There are no magic discounts for "flippers" or "investors" . Especially if you are only doing 1 house .To a contractor its just another job .
Contractors dont over price , you and the contractor agree on the price for the scope of work , if you dont like the price you find someone else .
Some contractors are just more expensive than others .
I am trying to learn how to properly estimate rehab costs and negotiate with contractors. I’ve heard a lot about contractors taking advantage and overpricing. Any advice would help.
Also the key thing to pressure the cost really low is to keep using the same set of subcon that they're more "generalist" rather than an specialist meaning they can do multiple type of task for different type of job.
you can always negotiate and see if they’re willing to discount.
In my many years of experience, if a GC would even consider negotiating, that would be a huge RED FLAG. We all have our margins, our exclusive costs and our profit/overhead. People think we just add in an extra few thousand for negotiating purposes? No.....that's not how it works. I guess only other GCs understand how this pricing thing works....?
To each their own—but all trades say, “good work ain’t cheap and cheap work ain’t good “ however unscrupulous contractors that take advantage of people are a major thing. if we wont acknowledge that, contractors are just looking out for themselves and their individual business model. you also can’t assert that quotes can’t be automated and also assert that there’s no variance in pricing lol
you can always negotiate and see if they’re willing to discount.
In my many years of experience, if a GC would even consider negotiating, that would be a huge RED FLAG. We all have our margins, our exclusive costs and our profit/overhead. People think we just add in an extra few thousand for negotiating purposes? No.....that's not how it works. I guess only other GCs understand how this pricing thing works....?
To each their own—but all trades say, “good work ain’t cheap and cheap work ain’t good “ however unscrupulous contractors that take advantage of people are a major thing. if we wont acknowledge that, contractors are just looking out for themselves and their individual business model. you also can’t assert that quotes can’t be automated and also assert that there’s no variance in pricing lol
Rant over !
There are definatly some bad contractors out there , jut like any other business , car dealers , flippers who cut corners , mechanics , etc .
As far as contractors just looking out for themselves and their business model ..............Well , isnt that what all business do ? I certanly do , if there is no money in it , why do it ?