Special offer

An Argument Against the Lowest Bid

By
Real Estate Agent with Raleigh Cary Realty NC Broker #178638

It's common wisdom that we should get three estimates and take the lowest bid.  That's just being an intelligent consumer, right?  But I would argue that the lowest bid is rarely the best choice.

Now if the item is the product of mass manufacture -- a car, for example -- that's different.   I'm talking about hiring someone to do a job that requires skill.  Skill levels can vary from beginner to expert.  People with superior skills expect to be paid more, and you can't blame them for that.

Some years ago a relative of mine was in a minor car accident.  His car needed to be repaired and repainted.  He got several bids, played the body shops off against each other, and haggled the lowest one down even lower.  He was pleased with himself for saving so much money!  

Then he got the car back, and he was unhappy with the paint job.  It annoyed him every day, for as long as he had that car.  Years.

If your project is something that matters to you, that you will have to live with for a long time, it's more important to get it done properly than to save a few bucks. 

By all means, ask around for referrals and get three estimates.  Usually one of the three won't show up at all, or they do show up but then have to be reminded several times before coming up with the estimate.  That  person is going to be too busy (or perhaps too disorganized) to get the work done in a timely manner.  

Then go with your instinct and hire the one you think will be good to work with and do an outstanding job for you.   If that's the low bid, great!  But cost  shouldn't be the determining factor.

To quote Benjamin Franklin, "The bitterness of poor quality remains long after the sweetness of low price is forgotten."    

 

 

 

  

 

 

Posted by

                              Dianne Goode signature   

 

 

 

 

Helping nice people get from where they are to where they want to be.

 

 

Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Dianne, I have to agree, the lowest bid could be the worst service and your relative found out the hard way!  

Jan 31, 2017 06:56 AM
Cheryl Dukes . . . . . Intown Atlanta
Guaranteed Offer for your Home - eXp realty - Atlanta, GA

Great info here, Dianne Goode. Even though I know the lowest bid is not necessarily the best, I fall for it every time.

Jan 31, 2017 07:26 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Dianne

You have raised some good points. We know that much of the time you get what you pay for. Cheap  is cheap.

Jeff

Jan 31, 2017 07:29 AM
Dianne Goode

Hi Jeff.  There is always somebody cheaper!  That can't be the determining factor.

Feb 05, 2017 07:25 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Dianne Goode, my dad always told me you pay for what you get.  I learn from someone else that what a bid was I would offer 10% more, boy this I get some of the best jobs and better material.

Jan 31, 2017 07:55 AM
Dianne Goode

If you can successfully defend your price, you add value to your service.

Feb 05, 2017 07:26 AM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Diane,

My father was always for getting the best person for the job.  It may cost more and prevent major headaches later on.  A

Jan 31, 2017 02:30 PM
Dianne Goode

Hi Alexandra.  So true about the headaches!   I remember one client who hired a different company than the one I recommended to put in an inground pool, telling me my choice was way more expensive.  They ended up with a mess and a nightmare!   But I just bit my tongue.

Feb 05, 2017 07:29 AM
Roy Kelley
Retired - Gaithersburg, MD

This is excellent advice to share. I love your quote selection.

Feb 03, 2017 07:29 AM
Dianne Goode

Hi Roy.  I thought it was Zig Ziglar who said that!  Come to find out that bit of wisdom has been around a long time.

Feb 05, 2017 07:30 AM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

That is an excellent point. I have found from personal experience the lowest is usually not the route I need to follow. Somewhere in the middle tends to work out best.

Feb 03, 2017 08:03 AM
Dianne Goode

I agree, Debbie.  That's how it usually works out.

Feb 05, 2017 07:32 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

This is very true.  You are never going to get the best quality for the lowest price.  

Feb 03, 2017 09:12 AM
Dianne Goode

And yet, people will continue to try!   

Feb 05, 2017 07:33 AM
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

I completely agree with this.  Price isn't always top of the list when making decisions such as these.  In some cases we have even chosen the highest price depending on the circumstances.  Nice post and good points. -Kasey

Feb 03, 2017 01:31 PM
Dianne Goode

Thanks for stopping by!  Most of us have learned from experience that there's a reason for the low bid.


 

Feb 05, 2017 07:34 AM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

Lowest bid is rarely best ...and not our first choice .

Feb 03, 2017 06:05 PM
Dianne Goode

True!  And  avoiding the hassle that comes from not getting the job done right  -- that's worth money too.

Feb 05, 2017 07:35 AM
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Dianne. This is wondetful and so very very true. You can pay me now or pay again later. Terrific post.

Feb 04, 2017 08:08 AM
Dianne Goode

Thank you Sheila!

Feb 05, 2017 07:35 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Dianne I am so sorry to see that this post was not featured.... on a side note if people went with the lowest bid I would never have a listing and I would not be in this business for over 23+ years:)Endre

Feb 04, 2017 09:32 PM
Dianne Goode

Hi Endre.    So true!   I figure the ones who list with someone else for 1/2 percentage point less commission are probably not people I wanted to work with anyway.

Feb 05, 2017 07:37 AM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Dianne- this is so true and a reminder to everyone.  I can remember when we put a new roof on one of our homes.  We got about 3 bids and ended up with the middle one.  And...we were very pleased. 

Feb 23, 2017 06:11 PM
Nathan Gesner
American West Realty and Management - Cody, WY
Broker / Property Manager

Dianne Goode this is a guote I use often: "If you think a professional is expensive, try hiring an amateur!" Good article!

Mar 03, 2017 05:42 AM
Beth Bromund
Coldwell Banker Weir Manuel - Rochester, MI
REALTOR (248) 651-3500

This is sage advice, and a good reminder that hiring the least expensive contractor does not always end up being the least expensive.

Mar 04, 2017 05:47 PM
Roy Kelley
Retired - Gaithersburg, MD

I was looking for your current blogs. I hope all is going well for you.

Mar 21, 2017 03:26 AM