Real estate mistakes I made: Taking the low bid

You get what you pay for – sometimes.

Did you ever get multiple bids from contractors and one of them came in really low?

If an estimate by a contractor is way out of line, that is, it is really low and you can’t see how the guy is going to make money – RUN!
Just because a guy has a paint brush, it doesn’t mean he’s a painter.

Same for a guy with a hammer – it doesn’t make him a carpenter.

When I took the low bid and how it turned out to be a mistake

About seven years ago I was doing a substantial rehab just outside of Charlotte, N.C.

I had interviewed several painters and I decided to go with the lowest bid, which was significantly lower than all the others.

Well, I paid the guy upfront for the materials and he actually showed up for work – ONCE!

I should have realized his figures were way out of line and he wouldn’t make any money on this house. It didn’t matter that we had a signed agreement for a start and a completion date. His bid was really low and he had no intention of doing the work.

If the bid is so far out of line, don’t think you are getting a deal. In fact, be prepared to get ripped off.

Always get references, call former customers and when possible, go look at the work.

This little mistake cost me $3,000 as I paid my initial low budget contractor and had to hire someone else.

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