3276: How to Find a Contractor: It’s Not Just About Price by J.D. Roth of Get Rich Slowly on Frugality and Home Ownership

Summary

Optimal Finance Daily, Episode 3276

Title: How to Find a Contractor: It’s Not Just About Price
Host: Diania Merriam
Article by: J.D. Roth (Get Rich Slowly)
Air Date: September 8, 2025

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Episode Overview

In this episode, Diania Merriam narrates and expands upon J.D. Roth’s insightful piece on the complexities of hiring a contractor. While many are tempted to simply choose the lowest-priced bid, both J.D. and Diania emphasize that frugality isn't just about cost—it's about weighing reputation, timeline, communication, and reliability. Drawing on personal experiences with home improvement, the episode offers actionable advice for anyone faced with big-ticket decisions in homeownership.

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Key Discussion Points and Insights

The Importance of Shopping Around

• Comparative Shopping Is Crucial for Major Expenses:
  J.D. Roth points out that while small savings add up, the real potential for saving comes from comparison shopping for big purchases like home renovations, cars, and mortgages.

  "When you shop around for groceries, you can save maybe a dollar on a loaf of bread... But when you shop around for big ticket items, you can save thousands of dollars." (05:49)

Real-Life Contractor Experiences

The New Roof

• First-Time Lessons (1993):
  J.D. and his wife bought their first home and faced the urgent need for a new roof. With no experience, J.D. collected 20 different bids, ultimately settling on a mid-priced, communicative family business willing to offer a discount if he helped.

  "The contractor I hired did not offer the lowest price...but he ran a family business like mine, was willing to answer my questions, and offered a $500 reduction if I helped." (03:26)

  • The result was cost savings, new skills, and pride in the work done.

The Bathroom Remodel

• Wide Range of Bids and Quality:
  The bathroom in J.D.’s new home was a mess and required a complete remodel. Estimates swung from $34,000 (from a large, polished company) to $15,000 (from an online referral who seemed untrustworthy). A recommendation from a friend led to a contractor whose quote jumped to $21,000 after agreeing to do everything to code, with whom they were ultimately satisfied.

  "In retrospect, we probably could have spent more time to find a lower bid, but we were pleased with the final results and plan to hire this contractor again in the future." (05:29)

Key Factors When Choosing a Contractor

• Reputation:
  Ask for—and check—references, search online reviews like Angie’s List.
• Reliability:
  Is the contractor licensed, bonded, and offering a warranty?
• Schedule:
  The lowest price is meaningless if the contractor can’t meet your timeframe.
• Quality:
  Judge past work. Some brought portfolios; the lowest bidder didn’t.
• DIY Involvement:
  Sometimes, you can save more by pitching in yourself (to be discussed in future episodes).

"When comparing prices, be sure you match apples to apples...Your priority is finding a company that you can trust to do the work at a reasonable rate." (05:12)

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Diania Merriam’s Commentary and Personal Experience

[08:56]

• Women Face Extra Hurdles:
  Diania underscores that women can face extra skepticism or even patronizing attitudes.

  “If you’re a woman, there may be an added layer of complexity as we can be easily taken advantage of.”

• Her Own Cautionary Tale:
  Diania recounts being convinced not to negotiate for a seller fix, instead hiring a recommended contractor for an expected $100 job—eventually billed at $500.

  "Rather than continuing to argue with him, I ended up just paying it and considered it the cost of a lesson." (09:23)
  Now, she always gets “quotes and clarification in writing so there isn’t a case of he said, she said after the work is done.”

• Strategy for Navigating Contractors:
  Diania deals with wildly different bids and sometimes patronizing attitudes ("He kept asking me how much I was willing to pay” and “he insisted he talk to the man of the house...I am the only owner of this house.”).
  Her preferred solution:

  “My strategy has been to just keep asking around, follow my instincts on what feels right, and always try to work with someone recommended by someone else I know and trust.” (10:39)

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Notable Quotes & Memorable Moments

• J.D. Roth:

  “Some people feel guilty asking a company for a price quote and then not using them. Don’t. That’s how it works. The company isn’t offended. They quote similar jobs every day.” (05:01)

• Diania Merriam:

  “Since then, I always get quotes and clarification in writing so there isn’t a case of he said, she said after the work is done.” (09:46)
  “[One contractor] insisted he talk to the man of the house despite me explaining multiple times that I am the only owner...” (10:10)
  "Ultimately, I went with an elderly independent roofer who was highly recommended by a close friend. He took an hour to help me understand what all the other contractors were saying...so far, so good.” (10:25)

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Timestamps for Key Segments

• How J.D. Roth approached hiring his first contractor (roofing): 01:42 – 04:05
• The bathroom remodel contractor hunt: 04:23 – 05:39
• Checklist for choosing a contractor: 05:39 – 06:40
• Diania Merriam’s commentary and personal stories: 08:56 – 11:00

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Actionable Takeaways

• Get multiple bids for large expenses—20 is not too many!
• Don’t be embarrassed to ask for (and check) references, or to walk away from a quote.
• Price is not the only factor; trust, communication, and timeline matter too.
• Get everything in writing.
• Lean on recommendations from friends and people you trust, especially when faced with confusing or high-pressure sales tactics.
• Women, especially, should be aware of—and push back against—condescending or biased treatment.

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This episode underscores the value of doing your homework—and trusting your instincts—when hiring for big projects. Frugality is about much more than pinching pennies: it’s about being thorough and proactive so that your money is well spent and your projects are a long-term success.

Transcript

[Carvana Sales Representative]

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[Carvana Customer]

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[Carvana Sales Representative]

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[Carvana Customer]

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[Carvana Sales Representative]

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[Carvana Customer]

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[Carvana Sales Representative]

It's it's the present and just the convenience of Carvana. Sorry to blow your mind.

[Carvana Customer]

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[Financial Advisor/Announcer]

Sell your car the convenient way to Carvana. Pick up. Times may vary and fees may apply. You're about to make a trade. Which u do you listen to? Is it get optioning those options.

Or.

Let'S do a little research. Learn [e-mail] TradeSmart.

[JD Roth / Podcast Host]

This is optimal Finance Daily. How to Find a Contractor It's Not Just About Price by JD Roth of getrichslowly.org On Monday, I mentioned that it pays to shop around for the lowest price. This skill is especially important when making large money decisions. You should always shop around when purchasing a car, obtaining a mortgage, or hiring a contractor. We've discussed getting the best deal on a car before. We've touched on mortgages and are sure to discuss them more in the future. Today I want to share my approach to finding a contractor. The New Roof we bought our first house in the spring of 1993. The roof was in bad shape and needed to be replaced before we could close the deal. Fortunately, we had a good working relationship with the seller. He offered to grant us a $2,000 credit if we would take care of finding a roofer. I had never done anything like this before, nor had any of my friends. I looked in the phone book and found a local roofer. When I called, he could sense that I was confused. So he talked me through the process, asking about the size of the house, the slope of the roof, the material we wanted to use, the condition of the existing shingles. He gave me a quote of $2,300. I called two more places. One quoted $2,500 and the other quoted $1,800. But the last place couldn't do the roof repair for three weeks. Three weeks. I needed it done by the following weekend. This was getting complicated. I got out a sheet of paper and made a list with the company's cost, lead time, and any notes. I spent my lunch breaks during the next two days calling roofing contractors. When I was finished, I had a list of 20 bids. The lowest quote was $1,200. The highest was 4,800. I've never figured out why that bid was so out of range. I had created this list on a whim, but found it invaluable. After eliminating from consideration those contractors who couldn't meet the time frame and those that would not offer a strong enough guarantee, I had a list of six or seven potentials. The contractor I hired did not offer the lowest price, but he ran a family business like mine, was willing to answer my questions and offered a $500 reduction if I helped on the project because he was shorthanded. Though this contractor wasn't the cheapest. The $1,800 net cost was relatively low. A friend and I spent a long weekend ripping off old shingles and nailing down new ones. It was hard work. I learned something about roofing in the process and for the decade we lived in that house. I was filled with a sense of pride whenever I had to climb on the roof to clean the gutters. In the spring of 2006, we had to repair a section of the roof on our current home. We didn't call 20 contractors this time, but we did call half a dozen. Again, there was a wide disparity on the bids. They ranged from a low of $300 to a high of $3,000. We chose a company that quoted $800, but which seemed to understand what we wanted. The bathroom remodel. When we bought this house, we knew that the bathroom would have to be remodeled. It was a mess, filled with 80 years of shoddy add ons. The shower stall was huge and it dominated the room. The plumbing and electrical work were not to code. There was minimal lighting and you could see through to the basement in one section of the floor. We went to the Portland Home and Garden show to get ideas. There we found a company whose work we loved and invited them to bid. They gave us an estimate of $34,000. That was more than twice what we had planned to pay. Chris found a website that matched jobs with contractors, and it paired us with a fellow who gave us a bid of $15,000. That was exactly at our budget, probably because we had to tell the website what our budget was. But we weren't confident that this contractor was listening to what we wanted. He didn't seem competent. One of Kris's co workers recommended another contractor. We met with him, liked him immediately, felt he was playing fair with us, and we were pleased that he could meet our timeline. He quoted us $18,000 to 21,000 if we did everything to code and got all the permits. We chose the latter option. In retrospect, we probably could have spent more time to find a lower bid, but we were pleased with the final results and plan to hire this contractor again in the future. Conclusion when you shop around for groceries, you can save maybe a dollar on a loaf of bread. When you shop around for a plasma television, you might save $200. But when you shop around for big ticket items, you can save thousands of dollars. Some people feel guilty asking a company for a price quote and then not using them. Don't. That's how it works. The company isn't offended. They quote similar jobs every day. Sometimes they get the work, sometimes they don't. Your priority is finding a company that you can trust to do the work at a reasonable rate. When comparing prices, be sure you match apples to apples. The deal from rock bottom cabinets might not be so impressive if they don't offer any sort of guarantee on their workmanship. Consider the following when making your decision. 1. Reputation Ask for references. Check the references. Better yet, search the Web. Angie's List is a good source of information on contractors. 2. Reliability is the company licensed and bonded registered with the State Contractors board? Do they offer a warranty? 3. Schedule. It's no use taking the lowest bidder if the company is unable to complete the project on your timeline. Quality Try to get a sense of the quality of each contractor's workmanship. Those who bid on our bathroom remodel brought photo albums to show us the lower bidder didn't. You can also save money by doing some of the work yourself, but that's a subject for another day. You just listened to the post titled how to Find a Contractor. It's not just About Price by JD Roth of getrichslowly.org this message is brought to you by Apple Card. Does this sound familiar? You're in line at checkout, cart full of items, your toddler is screaming for a treat, and you left your wallet in the car. Or was it at home? No need to panic. With your iPhone in hand, you can tap to pay using Apple Card. With Apple pay and you'll earn 2% daily cash back when you do so. If your credit card is an Apple card, maybe it should be subject to credit approval. Apple Apple Card issued by Goldman Sachs Bank USA Salt Lake City Branch terms and more at applecard.com the Jack Welch.

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[JD Roth / Podcast Host]

I wholeheartedly agree that it's important to shop around and talk to multiple contractors when you need work done on your home. I've personally found that contractors don't necessarily agree on what the underlying problem is or the best way to fix it. And if you're a woman, there may be an added layer of complexity as we can be easily taken advantage of. I experienced this firsthand when I bought my house. My real estate agent convinced me to not push the seller to externally vent the dryer in the basement because she had a recommendation for a contractor that could do it for $100. He ended up quoting me for $200, but the final bill was $500. Rather than continuing to argue with him, I ended up just paying it and considered it the cost of a lesson. Since then, I always get quotes and clarification in writing so there isn't a case of he said, she said after the work is done. I've also had a few roof leaks that I've needed to address, and I've been fascinated at the range of quotes and explanations I've received. One contractor wouldn't quote me a price. He kept asking me how much I was willing to pay. Another insisted he talk to the man of the house despite me explaining multiple times that I am the only owner of this house. A third quoted me $10,000 with an overly complex explanation as to all the work that needed to be done. Ultimately, I went with an elderly independent roofer who was highly recommended by a close friend. He took an hour to help me understand what all the other contractors were saying. He also proposed a temporary solution that cost me $200, but he estimated it would buy me five years before I needed a more elaborate and expensive fix. So far, so good. My strategy has been to just keep asking around, follow my instincts on what feels right, and always try to work with someone recommended by someone else I know and trust. And that's a wrap for another Monday show. Have a great rest of your day and start to your week and I'll be back tomorrow where your optimal life awaits.