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

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.

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)

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)

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)

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

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.

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.