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tanya_svoboda69

Builder wanted $500 deposit to provide a quote

5 years ago

One of the four builders we have quoting our got renovation asked for a $500 deposit to put together a detailed quote. He said that every single thing will be itemized and that that $500 will be applied towards his fees if we choose to work with him. Otherwise it's a wash.
The other builders did not ask for this, but honestly 2 of the 3 quotes that we have in hand are so vague and undetailed that it's hard to trust them. So for this fourth quote I was willing to pay the 500 bucks, assuming it will be as detailed as he says.
Has anyone had a builder ask for this? Was this a reasonable ask?
He will be quoting from a full set of construction drawings that were already completed.

Comments (14)

  • PRO
    5 years ago

    It is a lot of work to put together a detailed estimate/bid/quote. If they are a serious candidate to build your home, it may be a good investment.

  • 5 years ago

    Thanks Mark. Appreciate the confirmation.

  • 5 years ago

    I did with my addition. The costs were well itemized and it was hours of work for him to produce. The 350 deposit (this was four years ago) was worth it. My contractor also never asked for Any other money up front. The $350 was subtracted from the first work completed bill I received. I had two weeks to pay each work completed invoice. I never needed to worry about paying up front and the contractor bailing. I only paid him after I could inspect that weeks work. I asked him how he prepaid for supplies he said he has excellent credit with rings end and this is how he has operated his business for decades.

  • PRO
    5 years ago
    last modified: 5 years ago

    In my region quotes for whole house builds are either free or builders will ask for deposits between $4-8k, partially credited towards build.

    Again it depends on how detailed & non standard (custom).

    Free gets mostly allowances which are often confusing.

    Detail costs time & money to produce, typically 4-8 weeks but greatly reduces risk for the consumer.

  • 5 years ago

    Its cheap.

  • PRO
    5 years ago
    last modified: 5 years ago

    Tanya:

    This builder is smart. He's qualifying his customers. If you're unwilling to come off a lousy five hundred bucks, he's unwilling to invest any time in you. Like the other guys did with their vague quotes. He is busy, his time is valuable, and the builder you want is busy right now.


    I'm having my sink replacement customers email me pictures of their sinks. It's not only a fair Covid defense, but if you can't get out of your chair long enough to email me a picture, I can't get out of mine long enough for an in-person visit. Smart contractors make the customers do something; put up $500.00 or send an email. The qualified will, the tire-kickers won't.

    I made 5 sales calls last Wednesday, sold 4 sinks, and may still sell the 5th. I am not the world's greatest salesman, however, I am a brutal qualifier. You've got to earn my visit.

    No free estimates; just a fair exchange of information.

  • 5 years ago

    It makes sense. Even if you don’t use him it might still give you a better idea of specific things for budget purposes. I’m getting kitchen quotes right now and am finding the same thing re: vague quotes/bids with no real details. Even though I’ve provided a detailed drawing. But I expected that based on the fact that they’re free. Good luck!

  • 5 years ago

    I appreciate everyone's input. It actually is making me have more faith in the builder now.

  • 5 years ago

    We paid a landscaper $250 for his landscaping plan (drawn up in his truck after seeing our yard) and estimate, and that was for $15k work. I don't think it's unreasonable for a builder to ask for $500 for a detailed quote on a renovation.

  • 5 years ago

    The more information you are able to provide to the contractor, the better his estimate can be. For example, if you know you want 7 inch wide white oak flooring, the contractor can build that into the price.


    Watch out for "allowances" too. That is where you will miss your mark. Some contractors provide allowances that are not sufficiently high to cover what you want.

  • 5 years ago

    @kempke01 For sure. I had a list of finishes and printed off my Houzz pics for all the builders.

  • 5 years ago
    last modified: 5 years ago

    If the quote is from a licensed builder with previously satisfied clients it could be well worth it.

  • 5 years ago

    It is a lot of work to put together an itemized quote and it is worth every penny. I say go for it!

  • PRO
    5 years ago
    last modified: 5 years ago

    There is an expectation of "free" estimates in new home construction and remodeling. Most folks who expect a professionally-produced line item cost estimate wouldn't dream of working for free, but that's what they're asking the candidate builders and remodelers to do.

    Professional builders and remodelers do the job right. Expect to compensate them for their professional expertise whether it's pre-construction or during the construction process.

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