Why We Didn’t Settle For The First Kitchen Renovation Quote

I recently wrote about purchasing our new home and the reality that came with it: before we could actually move in, we were going to have to do quite a bit of renovation.

When my wife and I purchased the house, we knew there would be work involved. We weren’t expecting everything to be brand new, but there were certain projects that we knew we couldn’t avoid. One of the biggest—and probably the most expensive—projects on our list was the kitchen.

And when I say expensive, I mean really expensive.

Our plan for the kitchen wasn’t simply to replace one appliance or repaint the cabinets. We were essentially starting over. We planned to remove most, if not all, of the existing cabinets and appliances and replace them with new ones. It was going to be a significant renovation.

Naturally, we knew it wasn’t going to be cheap.

What we didn’t expect was just how expensive some of the contractors thought the labor would be.

The First Quotes Were A Shock

My wife started reaching out to several general contractors to get estimates for the kitchen renovation.

We figured the best way to determine what something should cost was to talk to multiple contractors. After all, neither of us has enough experience renovating kitchens to simply look at a project and know what a reasonable labor cost should be.

So we started getting quotes.

And then we started getting shocked.

Several contractors were quoting us somewhere around $45,000 to $50,000 for labor alone.

Labor.

That number didn’t include all of the cabinets and appliances we would have to purchase separately.

When you’re talking about potentially spending $45,000 or $50,000 just to have someone do the work, it’s hard not to take a step back and ask yourself:

Is this really what a kitchen renovation costs?

Maybe it was.

Maybe that was simply the going rate.

Or maybe we were being quoted significantly more than what we actually needed to pay.

At that point, we weren’t sure.

But we knew one thing.

We weren’t going to immediately sign a contract for $50,000 just because someone told us that’s what the renovation would cost.

The First Contractor Kept Calling

One of the contractors we initially contacted seemed particularly interested in getting our business.

After giving us his initial quote, he continued following up with my wife to see if we had made a decision.

We explained to him multiple times that his price was simply too high for our budget.

It wasn’t that we thought he was necessarily a bad contractor. It wasn’t that we didn’t appreciate his experience. It was simply a matter of economics.

His price was much higher than what we were comfortable spending.

Eventually, he lowered his price.

From around $50,000, he dropped it to approximately $45,000.

That was certainly a reduction, but it still wasn’t enough.

We had already decided that $45,000 was too expensive for us, especially when we were still trying to figure out what other options were available.

And then something happened that completely changed how we looked at the situation.

We Found A Quote For Nearly One-Fourth the Price

As we continued looking around, we eventually received another quote that was nearly one-quarter of what some of the other contractors were charging us.

That’s when we really started questioning the original estimates.

How could one contractor be asking for roughly $45,000 to $50,000 in labor while another option was coming in at around one-quarter of that amount?

Obviously, there can be legitimate differences between contractors.

One contractor might include more work.

Someone might use a larger crew.

Someone might have more experience.

There could be differences in materials, project management, timelines, permits, warranties, or the amount of work included in the contract.

So I’m not saying that every contractor should charge the same amount.

But when you’re talking about a difference that large, it’s absolutely worth investigating.

And that’s exactly what we did.

The Five-Star Yelp Argument

Despite telling the first contractor that his price was outside our budget, he continued trying to convince us to consider him.

One of the things he emphasized was his five-star Yelp rating.

And I understand the argument.

Reviews matter.

If I’m going to hire someone to work on my home, I absolutely want to know whether other customers had good experiences with that contractor. I don’t want someone with terrible reviews tearing apart my kitchen and leaving me with a bigger problem than I started with.

But a five-star review doesn’t automatically mean that I should pay tens of thousands of dollars more.

A contractor can have excellent reviews and still be more expensive than another qualified contractor.

At the end of the day, we had to consider the entire package.

Price was certainly an important factor, but so were referrals, reputation, scope of work, communication, and whether we felt comfortable with the contractor.

A five-star Yelp rating wasn’t enough to justify spending an additional amount of money that we weren’t comfortable with.

Then Came The Final Price Drop

Just when we thought the conversation was over, the contractor made one more attempt.

He lowered his price again.

This time, he offered to do the job for approximately $39,000.

He was essentially trying to beat another contractor’s price.

But there was an interesting part to the offer.

He wasn’t actually trying to beat the contractor who had given us the quote that was nearly one-quarter of his original price.

Instead, he was trying to beat another contractor who was closer to his price range.

And there was another condition.

He wanted to put a sign outside our home advertising his renovation company.

That made me pause.

Not necessarily because putting up a sign is automatically a bad thing. Contractors often advertise projects they’re working on, and homeowners may agree to it.

But I couldn’t help thinking about how much his price had changed.

First, we’re around $50,000.

Then we’re at $45,000.

Then suddenly we’re at $39,000.

That’s a pretty substantial reduction.

And it naturally raises a question:

If you could do the job for $39,000, could you have done it for $39,000 from the beginning?

Obviously, I don’t know the answer.

Maybe his original quote included more profit.

Maybe he was willing to reduce his margin to win the job.

Maybe he realized we were serious about walking away.

Maybe he was simply negotiating.

There could be several explanations.

But from the customer’s perspective, it’s hard not to wonder.

What If We Had Accepted The First Quote?

This is the part that really sticks with me.

Imagine if we had simply accepted the first contractor’s quote.

We could have agreed to spend somewhere around $45,000 or $50,000 on labor.

Then later, we could have discovered that another contractor was willing to do substantially similar work for dramatically less.

That would have been painful.

Not only financially, but psychologically.

Nobody wants to find out that they could have saved tens of thousands of dollars simply by making a few more phone calls.

And that’s exactly why I’m glad we didn’t rush into anything.

We didn’t know what the “right” price was when we started.

But instead of assuming the first few quotes represented the market, we kept looking.

Our Friends Gave Us Some Perspective

We also started asking friends about their renovation experiences.

This turned out to be extremely helpful.

When we told them how much some contractors were quoting us, they were surprised too.

They basically confirmed what we were already thinking:

That sounds really expensive.

Our friends also provided us with referrals.

And those referrals ultimately led us to contractors who were willing to do the work for around one-quarter of what some of the original contractors were asking.

That’s something I don’t think people should underestimate.

Sometimes the best contractor isn’t the person who shows up first in a Google search.

Sometimes it’s the person your friend, family member, neighbor, or coworker has actually used.

Someone who has firsthand experience with a contractor can give you information that a five-star online review can’t necessarily provide.

They can tell you whether the contractor showed up on time.

Whether they communicated well.

Whether they stayed within budget.

Whether the work was completed properly.

Whether there were unexpected problems.

And perhaps most importantly, whether they would actually recommend that contractor to someone else.

Get Multiple Quotes

If there’s one lesson I’ve taken away from this experience, it’s this:

Don’t settle for the first few quotes you receive.

Especially when you’re talking about a major home renovation.

A $500 difference might not justify spending weeks searching for another option.

But when you’re dealing with a $10,000, $20,000, or even $30,000 difference, it’s absolutely worth doing your homework.

Get multiple quotes.

Ask what is included.

Ask what isn’t included.

Compare the scope of work.

Ask about permits.

Ask about timelines.

Ask about warranties.

Check reviews.

But don’t stop there.

Ask people you know for referrals.

A contractor recommended by someone you trust may be worth investigating even if you wouldn’t have found them through your initial search.

The Cheapest Quote Isn’t Automatically the Best

At the same time, I don’t think the lesson is simply to hire whoever gives you the cheapest price.

That’s another mistake people can make.

If one contractor quotes you $50,000 and another quotes you $12,500, you shouldn’t automatically hand the second contractor a check.

You need to understand why there is such a large difference.

Are they doing the exact same work?

Are the same materials included?

Are permits included?

Is demolition included?

Are plumbing and electrical changes included?

Are cabinets being installed?

Are there hidden costs?

Are they licensed and insured?

Do they have references?

A low quote can be a great deal, but it can also become expensive if important items were left out.

That’s why comparison is so important.

You’re not just comparing numbers.

You’re comparing what you’re actually getting for those numbers.

Don’t Be Afraid To Walk Away

Another lesson I’ve learned is that it’s okay to tell a contractor no.

Sometimes people feel pressured because they believe they have already spent time talking with someone.

Maybe the contractor came to the house.

Maybe they spent several hours putting together an estimate.

Maybe they followed up multiple times.

Maybe they’re telling you that their schedule is filling up.

None of that means you’re obligated to hire them.

This is your home.

This is your money.

And this is a decision you’re potentially going to live with for years.

If the price doesn’t make sense for you, it’s perfectly reasonable to keep looking.

In our case, the first contractor clearly wanted our business. But no matter how many times he followed up or how much he lowered his price, we still had to decide whether the offer made sense for us.

And ultimately, it didn’t.

The Savings Were Worth The Extra Effort

Renovating a home can already be stressful enough.

You’re dealing with contractors, schedules, materials, appliances, unexpected problems, and a growing list of expenses.

The last thing you want is to spend tens of thousands of dollars more than necessary simply because you didn’t take the time to shop around.

For us, making a few extra phone calls and asking friends for recommendations potentially saved us a significant amount of money.

And that’s money that can now go toward other parts of our renovation—or simply stay in our bank account.

Either way, I’m glad we didn’t settle.

The biggest lesson from this experience isn’t that one contractor was necessarily trying to overcharge us. We don’t know what his costs were or why he was willing to lower his price.

The lesson is that you don’t know what something should cost until you do your research.

The first quote isn’t necessarily the best quote.

The second quote isn’t necessarily the best quote.

Even the fifth quote might not be the best quote.

Sometimes the quote you’re looking for comes from someone your friend recommends, someone you wouldn’t have found otherwise, or someone who simply happens to have a completely different pricing structure.

So if you’re planning a major home renovation, take your time.

Get multiple quotes.

Ask your friends.

Ask your family.

Ask your coworkers.

Look at reviews.

Compare the scope of work.

And don’t be afraid to walk away.

Because sometimes, the best savings aren’t found through negotiating with the first contractor.

They’re found by finding a completely different contractor.