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Katie Smith
  • Santa Monica, CA
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Home Depot Contractor vs Independent Contractor

Katie Smith
  • Santa Monica, CA
Posted Feb 20 2018, 12:40

My husband and I just purchased our first investment property in Naples, Fl. The condo's kitchen and bathrooms need quite a bit of updating before we can start looking for a tenant to move in. 

The only problem is that we live in Los Angeles, so overseeing and managing the construction will be a bit difficult. However, we have some family in Florida that would periodically be able to check in. We went to Home Depot over the weekend and they said they could do the entire remodel for us. I'm curious if anyone has experience with Home Depot's contracting services versus hiring an independent contractor out in Florida ourselves.  Any information would be greatly appreciated!

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Grant Rothenburger
  • Investor
  • Taylor Mill, KY
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Grant Rothenburger
  • Investor
  • Taylor Mill, KY
Replied Feb 20 2018, 13:07

@Katie Smith Around here their contractors are usually just contractors that you can hire on your own, but they middle man it and make some money too. I have heard that sometimes contractors will have a contract with places and that is the only work they do. 

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Ramesh M.
  • Charlotte, NC
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Ramesh M.
  • Charlotte, NC
Replied Feb 20 2018, 15:15

@Katie Smith - type in "home depot contractor reviews" in google and check out the results. You can also search for similar terms in google, get more search results and get a sense of how they perform.

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Bob B.
  • Investor
  • Jasper GA
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Bob B.
  • Investor
  • Jasper GA
Replied Feb 20 2018, 16:38

@Katie Smith  There is nothing you can do to guarantee that the contractor will do a great job.  The HD Pro program will provide you with several contractors that HD has performed a background-criminal check, verified that they have proper license and insurance. I've been in construction for years and still had a hard time finding contractors for my out of state property.  You need "boots on the ground".  A  good recommendation from a BP member will help but there's still a risk.

Naples is a great place.

Good Luck

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Matthew Paul#1 Rehabbing & House Flipping Contributor
  • Severna Park, MD
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Matthew Paul#1 Rehabbing & House Flipping Contributor
  • Severna Park, MD
Replied Feb 20 2018, 16:53

HD makes a bundle on those contractors , have your checkbook ready

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Bob B.
  • Investor
  • Jasper GA
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Bob B.
  • Investor
  • Jasper GA
Replied Feb 20 2018, 18:43

@Matthew Paul Can you explain how HD makes a bundle on their Pro Referral Program?  I know their install programs are usually more expensive but my understanding the Pro Referral is just a referral program.  

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Manolo D.#3 Contractors Contributor
  • Contractor
  • Los Angeles, CA
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Manolo D.#3 Contractors Contributor
  • Contractor
  • Los Angeles, CA
Replied Feb 20 2018, 21:49

Bob B. I have an inside look when I asked them how our company could be an accredited installer. So HD charges the end user say $79/cabinet so no matter what the size, then they have their contractors pay on a piece base say a 12” cabinet the contractor charges 40/cab, for 15” 45/cab, 48” 95/cab. So if you install bigger and larger, HD loses, but who installs all large cabinets. Same as with flooring, they say $599/install but if your flooring needs prep, a little bow, or anything, they skyrocket the price, in short, they are playing the odds that your project will have upcharges but you are desperate to get your job done.

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Manolo D.#3 Contractors Contributor
  • Contractor
  • Los Angeles, CA
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Manolo D.#3 Contractors Contributor
  • Contractor
  • Los Angeles, CA
Replied Feb 20 2018, 22:15

Katie Smith The pro referral / Red Beacon is just a referral service, they check the license and then put them in the list, no guarantee whatsoever. If HD itself is installing, then it is either a long wait, a frustrating experience, AND/OR a skyrocket up charge. I have been to HD hundreds of times, and if a product is not too familiar, then don’t bet on it that they know anything about the product, that tells me that their install team will be of the same grade.

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Matthew Paul#1 Rehabbing & House Flipping Contributor
  • Severna Park, MD
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Matthew Paul#1 Rehabbing & House Flipping Contributor
  • Severna Park, MD
Replied Feb 21 2018, 02:56
Originally posted by @Bob B.:

@Matthew Paul Can you explain how HD makes a bundle on their Pro Referral Program?  I know their install programs are usually more expensive but my understanding the Pro Referral is just a referral program.  

The original poster said home depot could do it all , thats them being the contractor , not referals .  

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Chris Dawson
Pro Member
  • Real Estate Broker / General Contractor / Property Manager
  • Kansas City, MO
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Chris Dawson
Pro Member
  • Real Estate Broker / General Contractor / Property Manager
  • Kansas City, MO
Replied Feb 21 2018, 08:15

A previous company that I worked for had an install contract with Home Depot.  It was only for installing fences.  I'm not sure what our contract price was with HD, but I know it was much lower than what we would charge on our own.  Its all about volume for HD and for the installers its all about staying busy.  

I personally feel that hiring an HD installer to do one task, such as installing carpet, can be a good idea.  They usually have the best installation prices and as long as the material isn't overpriced (remember, you have to buy all HD material for them to install),  you should walk away a happy customer.  Worst case scenario, if something goes drastically wrong, at least you know HD won't run off or file bankruptcy to avoid fixing their mistakes.

I would NOT recommend hiring HD to do multiple tasks or manage a large project for several reasons:

  1. If you use HD to manage your project, you may have to use all HD materials.  While HD generally does have the best pricing on building materials, they don't always have the best pricing or selection on high end products or special materials like custom cabinets.  You might end up paying more and/or getting an inferior product.
  2. HD installers are locked into a contract with HD to do a job for a set price.  This means the faster they work, the more money they can make.  You could end up in a situation where the installers slam in your project without taking the time to do it the best way that it could be done.
  3. An independent contractor would not be tied to HD's products and could therefor provide you with a wider range of solutions and a wider range of pricing.

Hope this helps.

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Katie Smith
  • Santa Monica, CA
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Katie Smith
  • Santa Monica, CA
Replied Feb 21 2018, 10:12

Thank you for all the replies! 

Just to clarify, I was asking about hiring a Home Depot Contractor and using all Home Depot supplies (cabinets, flooring, counter tops) as opposed to finding an independent contractor out in Florida, and using their suppliers to handle the remodel. I figured the Home Depot option might be easier because of the distance, but wasn't sure about the quality of their materials and price compared to using an independent contractor.

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Marelyn Valdes
  • Investor
  • Ocala, FL
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Marelyn Valdes
  • Investor
  • Ocala, FL
Replied Feb 21 2018, 17:43

I tried to use Home Depot's services once on a rental.  They advertised installation of carpet and tile flooring and required their contractor come out to do an estimate.  Well, the guy kept adding extras (which were more than I could get at a local flooring company) and so I nixed the tile and went with just the carpet and pad installation.  They ended up taking over 3 times as long as promised and when you call the store they say it's the contractor not them.  I would never use their contractors again.  Also, if you are doing that much rehab, pick your supplies and run it past the pro desk, who will knock a lot off the price.  Remember if you hire anyone, put time is of the essence in your contract with a finish date and have someone monitor the work and use of your materials.  I pay for my own materials and hire contractors to do the work by the job, not the hour and only pay draws as work is completed and not the final until it passes my inspection (or any permits, if needed).

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Mike Reynolds
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  • construction
  • Nacogdoches, TX
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Mike Reynolds
Pro Member
  • construction
  • Nacogdoches, TX
Replied Feb 21 2018, 18:07

@Katie Smith I cant speak for HD but I did install for Lowes in between my commercial contracts to keep my crew busy. It got so hectic I had to quit them because there are just not enough contractors in Texas that even know what insurance is let alone have any. At one point I was doing 6 stores in 6 counties. 

Even if the install is bad they will make it good. Squeaky wheel will get greased. Most will be good installs though. It will cost a bit more but the secret is not that they make money on the install. It is designed for selling product. Some stores will only have a few trades to install. No roofer in this store and no cabinet guy in that store. You will generally need to have someone on the ground there to let them in and oversee the work. My advice is price it both ways and go with your conscience.  

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Matthew Miller
  • Hanson, MA
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Matthew Miller
  • Hanson, MA
Replied Feb 21 2018, 18:09

Worst thing you could do...You are going to pay a premium for services with sub-par work. The sub contractors are spoon fed work and don’t really care about quality. Hire a contractor on your own that relies on doing a good job at a fair price to get work not signing a contract with a big box store to get the job done as fast as possible so they can make money. I paid about 30% more going through a big box store to have a job done and had nothing but trouble with quality and permitting. Beware!

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Manolo D.#3 Contractors Contributor
  • Contractor
  • Los Angeles, CA
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Manolo D.#3 Contractors Contributor
  • Contractor
  • Los Angeles, CA
Replied Feb 21 2018, 18:35

Katie Smith I don’t get it. Home Depot doesn’t have contractors, they have installers. So who will manage the things they don’t? IE they don’t have painters, framers, plumbers, electricians, etc