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Cheap is NOT better!

By
Real Estate Broker/Owner with AGORA Realty #271029

I just want to remind you that cheap is not better.  Not usually and probably never.  Professional, experienced, licensed and insured should be the first and foremost reasons to hire a contractor.  If you hire an unlicensed, uninsured person to work on your home and they damage something else and it happens that they don't pay for it, your homeowners insurance will NOT cover the repairs because it is assumed that the contractor's insurance will cover the damage.  If they're hurt while working on your property, they won't be covered under worker's comp and may be able to sue you!  If they do the job incorrectly, they probably don't even know how to do it right or they may never return or you may not find out until much later...and then you'll have to hire a professional to get it done right in the end.  

 

What if they or their employee steals from you?  The company isn't a legal entitly so there's no licensing authority to hold them accountable.  If you can't prove they did it, they will not be held accountable by the law.  

 

Licensed contractors have a standard to follow and an authority to answer to like we do. They do the right thing by paying licensing fees like we do and yet they lose millions to unlicensed nonprofessionals.  

 

I constantly get intraoffice emails or see agents posting on social media for a cheap painter, etc.  The next time your client asks you for to find them a cheap (fill in skilled labor here), please remember that "you get what you pay for".  If you need a frame of reference, there are unlicensed people "Brokering" home sales for unknowing sellers and buyers somewhere out there while you're taking time for training, paying licensing fees, etc.  Consider that this occurs much more often in other trades than in our Real Estate business.  Thanks for your time and, next time, ask for referrals on a reliable, responsible, experienced, knowledgeable and creative contractor; not a cheap one!

 

Show All Comments Sort:
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC • Short Sale • Probate

Never better. You can get a good deal~ it is true. But sometimes a 'good deal' looks like a good deal but you still get what you paid for. Really good things and professionals don't need a discount to be sold.

Dec 31, 2013 03:55 PM
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

In a small rural market you know the contractors, do a lot of the work yourself and are jack of all trades trained. So the overhead of all the insurances, getting references all goes away. Nothing gets stolen and often you are working with the plumber, electrician, contractor... know them as friends, working on community projects. Every market is so so different in the 4th lowest crime state.

Dec 31, 2013 07:34 PM
Cheryl Ritchie
RE/MAX Leading Edge www.GoldenResults.com - Huntingtown, MD
Southern Maryland 301-980-7566
My expression is that it is very expensive being cheap. That says it all.
Dec 31, 2013 08:24 PM
Randy Shamburger
Movement Mortgage - Greenville, SC
FHA, VA, USDA and Conventional Mortgage Expert

 

Hey Alyse what an excellent post.  Thanks for taking the time to put this together. 

Have a Big day,

Randy

Dec 31, 2013 09:18 PM
Peter Pfann @ eXp Realty Pfanntastic Properties in Victoria, Since 1986.
eXp Realty, Victoria BC www.pfanntastic.com - Victoria, BC
Talk To or Text Peter 250-213-9490

Hi Alyse,

Yes I agree, yet paying a high price is not always an assurance of getting quality work either....

Best advise, Do your homework before hiring anyone

Have a Great Week and a Pfanntastic 2014

Dec 31, 2013 09:30 PM
Bill and MaryAnn Wagner
Wagner Real Estate Group - Ocean City, NJ
Jersey Shore and South Jersey Real Estate

Excellent advice Alyse. You should also ask the contractors to provide a certificate of insurance as well. When we do this we often do not hear back from the contractor.

Dec 31, 2013 09:55 PM
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

You are so right here.   Just like going to a job interview in a cheap suit... cheap gives an impression of less!

Dec 31, 2013 09:57 PM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Aly, well said! The liability for hiring unlicensed contractors can cost more in the long run.

Happy New Year!

Dec 31, 2013 10:07 PM
Blatt + Cutino
Coldwell Banker Realty - Monterey, CA
Broker-Associate 831/206-8070*Call today*

I often am asked by clients if I know the "cheapest" blah blah blah to do xyz...and often times it is assumed that I must know because I am a Realtor..and my reply is...just as you stated above! Happy New Year!

Dec 31, 2013 10:42 PM
Amanda Christiansen
Christiansen Group Realty (260)704-0843 - Fort Wayne, IN
Christiansen Group Realty

They always say that you get what you pay for.  Hiring cheap and unlicensed labor is a big no-no in my book.

Dec 31, 2013 10:49 PM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Amen, Aly. We own an electrical contracting company as well as a real estate brokerage. Every year, we do a lot of "friend, cheap contractor, jack-leg" repairs. Go with the pros every time and you won't regret it. At least, you have recourse if they do something wrong.

Jan 01, 2014 12:00 AM
Brian Lee Burke
Kenna Real Estate - Lone Tree, CO
Broker & Advising Expert-Kenna Luxury Real Estate

you do get what you pay for most of the time for sure!  Happy New Year!

Jan 01, 2014 12:25 AM
Curt Hess
ExecuHome Realty - Annapolis, MD
Luxury Home Consultant, Team Leader & CEO

Cheap is only cheap. And dealing with a person who thinks cheap is best just isn't very rewarding. Been there.

Jan 01, 2014 02:15 AM
The Legacy Group
CrossCountry Mortgage - Arlington, TX
The LegacyGroup of CrossCountry Mortgage

Mor people need to understand that "you get  what you pay for'!  Thanks for reminding all of this eternal truth!

Jan 01, 2014 02:36 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Real Estate Broker

It goes back to that old adage--"you get what you pay for and there's no free lunch."

Jan 01, 2014 07:06 AM
Alyse "Aly" Sands
AGORA Realty - Nashville, TN
It's Good To Be Home

Thanks for all the support.  I wish I didn't feel the need to write about this.  Unfortunately, so many homes I view have shoddy work done in them and so many agents ask for referals on inexpensive ___________ or good and cheap.  There's no such animal as "good" AND "cheap".  Anyone who is worth their weight deserves to be paid for it.

It's the same with agents.  When sellers ask if I'll cut my costs I ask them, "What services would you like to cut out"? or "Does your company ask you to take less than your salary?".

Jan 01, 2014 08:01 AM
Scott Seaton Jr. SLS Home Insp
SLS Home Inspections-Kankakee Will Iroquois Grundy Counties - Bourbonnais, IL
The Home Inspector With a Heart!

I am not the cheapest by any means. But boy oh boy do I ever see some horrible workmanship on the homes I inspect. I am pretty sure these guys are uninsured, unqualified or a relative. Sadly the sellers should make it right or risk losing the entire sale. Happy new year.

 

Jan 01, 2014 08:25 AM
Praful Thakkar
LAER Realty Partners - Burlington, MA
Metro Boston Homes For Sale

Alyse, you said it right - Cheap does not mean good (or better). Ask for GOOD or BETTER - and than in turn, if it is cost-effective, even better!

Jan 01, 2014 10:46 AM
Rosie Crow
Serving Sugar Land, Richmond, Rosenberg, Missouri City - Sugar Land, TX
Exceeding Expectations. Delivering Results

I totally agree. It is important to hire licensed professionals to do repair work. When I represent a seller, often times they tell me they will have their cousin or brother make the repairs that they negotiated with the buyers. I always advise them to hire a licensed professionaL to avoid any liability issues. Plus, it is a requirement in our Texas sales contracts, that all repairs must be made by a licensed professional.

Jan 01, 2014 12:06 PM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Associate Real Estate Broker

I lived this experience with the home we currently own. The previous owners did everything Cheap, so when ever anything broke, which was often, it was take it all out and get back to bare bones to rebuild everything. I called them the tenants!

Jan 01, 2014 09:31 PM