2022 Boise Idaho Real Estate Blog

Dilemma: The Low Bidder

Main Idaho Real Estate Insights

Lot's of discussion recently about how competitive bidding is getting, but this can also be a negative to the buyer.

When you are considering  bids you really need to do your homework. Lately I have even heard builders wondering how the competition can build so low. You may say "Screw 'em. I don't care if they make a dime." Of course, that is the problem you should care. If they aren't going to make a dime what do you think you are going to get?

Fraudelent ContractorAre they bidding low just to get the job so they can tack on additional charges? Are they going to cut quality or service to increase profit margins? Maybe they really just are the low cost leader and don't gouge clients? You had better know before you hire them or be prepared for the consequences. No one wants to work for free. If you think they are crazy to offer that price and how can they? Trust me, it will probably work out to your disadvantage.

Lately even builders are wondering how some subcontracts can offer such low bids. They know that it is too low and there is no way that subcontractors are going to make money. Do you want that guy working on your house. If he figures out too late he is losing money because he did not claculate overhead, like employee taxes and keeping the lights on in the office?

Listen to your gut. If you just don't know enough to understand the differences in the bids, hire someone who does. It is less expensive to do it right the first time than pay a second time to have it fixed.

Trey Langford

 
Posted by tlangford at 3/8/2009 4:04:00 PM

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