Do you pay for quotes?

Question

Hello all!

Thanks for taking the time to read this. I’m still new to investing and I wanted to know was it normal to pay someone to give you a quote on something you need done or fixed in your investment property.

For example I saw a construction company charging $100.00 for a quote to do a rehab project. Is that normal or industry standard? Thanks for all your time and advice. Have a great day.

Kenneth Bullock · Answer

It all depends. As an ex-contractor, I didn’t charge for estimates/quotes, on owned properties, as that was an attempt to get the job. I did however, charge for service calls & potentials, big difference!

If you want a bid to rehab a potential project, or trouble shoot a problem, why should the contractor help you work your deal, for no compensation, if you are looking to make a profit?

If you own the property, and are just looking for competitive bids, do not pay. If you are trying to do a deal, and need the info, pay for the knowledge.

Barry Pekin · Answer

@Brittany King, I believe that if you're getting a quote with the plan of actually getting them to do the work, you shouldn't have to pay for the quote. If, however, you're getting the quote just for the information (completing a property info packet) you should pay them for their efforts.

David Barnett · Answer

@Brittany King I've never paid a fee for a quote from a contractor.  My personal opinion is that I think I would pass on a contractor that wants a fee for a quote, especially if it's a fairly large job.

Theresa Harris · Answer

It probably depends on where you live and how busy they are.  If you own the house and are asking them to do work, they may not charge you for the quote (where I am they wouldn't).  If you don't own the house and are looking to buy it and want a quote, then I don't think it is unreasonable to ask you to pay since you may not buy the home.

Josh C. · Answer

Typically the most expensive or worse people will give away quotes on a whole house job. It takes hours and hours to do these. We charge $250 for a quote if it’s not a current client or they are only under contract on a house. That’s fair. Takes lots of time to do them. Only outfits making huge margin (read expensive) or desperate people would spend 4 hours for free. We get 95% of the work we bid because we are fair. Yellow pages contractors with sales teams charge 75% margins, but you’ll see that huge number for free. Good and fair contractors are too busy to waste time running all over giving free estimates.

Penny wise and pound foolish to be afraid of a couple hundred dollar fee on a 30k job.

James Doughty · Answer

@Brittany King

It’s very common up here, usually $100-150. But most guys take it off the repair bill if you have them do the work.

Frank Geiger · Answer

$50-$100 for a quote isn't a big deal. I usually think big picture so this is the cost of doing business. Much like you may order an inspection for $200 and find out there are huge issues with the property.

With that being said, once you find a reputable contractor and provide them a few projects they won't charge you for that service anymore.

Jerryll Noorden · Answer

Not normal, yet it is not NOT normal either.

It simply happens. And I don't blame them. So many people wasting their time. Wholesalers contact them to make an estimate without ever intending to hire them.

But one can argue that this comes with the job. Sure charging 100 for a quote, weeds out the players from the serious ones, but it will also limit people willing to work with the contractor.

Often contractors do this when they have plenty of costumers and on't need to be desperate for work. So as such it could be a sign of them being a good contractor.

See I convinced myself that 100 per quote can be a good thing.

Thanks, me!

You are welcome, me

Man you are good looking me

I know man. I know!

Brittany King · Answer

Thank you @David Barnett that was my first thought too.

Patricia Moore · Answer

@Brittany King If the scope of work is limited and from a single trade, then it’s pretty easy to use the first guy’s quote to get other quotes.  Always ask for a detailed written quote.  Once you get the quote, call other contractors and ask if they can do better.

Do you pay for quotes?

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