The Rule of 3 Bids
For homeowners who feel pressured to waste their time getting multiple bids in order to choose the right remodeler at the lowest price.
There are lots of rules in life. Some are good, like the golden rule. Some are stupid, like the 5-second rule—as if germs can count. So, what about the rule of three as in “Get Three Bids,” before choosing a remodeler?
Understanding the origins of the 3 bid myth
Where Does This Rule Come From Anyway?You can thank the insurance companies for starters
There are “rules of three” for nearly every walk of life actually, most notably in aviation, mathematics, the written word and photography. There’s also the unofficial college dating rule—never go out with 3 different girls on the same night. This goes double, or even triple as it were, if they’re from the same dorm! But does the rule of three make sense for choosing a remodeler? And who floated this idea in the first place?
If you Wiki search “Get three bids” to see who invented this idea, you don’t get much. We suspect the insurance companies are most likely to blame. Aren't they the ones that tell you to get three bids for your car repair? You feel obligated to agree of course, but feel a little abused by the assignment, right? Why is that suddenly my job?
They of course already know what it should cost, but they’re hoping you’ll spend your precious limited time getting the lowest bid for them, which probably won’t be adequate to get the job done right, but the goal is to make you feel warm and frugal fuzzy all over. Swell.
So it’s not surprising to think the rule of three applies to most everything else in life too, except well, for maybe spouses. But everything else so easily becomes a price comparison game. And you can only win that simple game when you've compared all possible prices. That works for some things, like TV’s and bluetooth devices, but not for something as complex as remodeling.
Identity confusion isn’t a crime, but maybe it should be considering what goes on at your “find a contractor” online service providers, where you are “advised” to think that "contractors" and "pros" are the same as remodelers. They are not. However, when you hire a design/build remodeler (not a contractor) to remodel your home, you are buying just the opposite.
So no, you can’t remodel an entire kitchen for $8,000, unless it’s the one your 5-year-old plays with in her room each day.
Remodeling isn’t a car and what it costs isn’t the best question.
It is analogous to hiring a car company to help you design and build a concept car of your very own. It will have four wheels and an engine, but the rest is up to you. You are literally buying ideas, concepts, design and construction experience, relationships, schedules, capabilities, skills, materials, and methods—all floating on a sea of fluctuating prices.
So, unlike a car, remodeling begins as an unassembled idea. You can’t test-drive it. You can’t actually, know the exact cost until all those items are selected, and negotiated with suppliers and vendors to create the budget to build what you want. It is an act of co-creation that takes dozens of hours to figure out and therefore can't be free. This is why a "free estimate" won't help you. At best, they are nothing more than a steaming pile of foot-in-the-door guesses. At worst, they quickly become a blank check with no end in sight.
In other words, you can’t really choose a design/build company by comparing 3 prices, or even 10. That is in fact, completely backwards. If you want to get an objective idea of what things cost in general, look at the Cost Vs. Value report.
But if you want to find the best remodeler for your project, you’ve got to look at it very differently and for different things.
Interview your remodeler like a prospective employee, not a price tag
Finding a great Remodeler IS a lot like dating and NOT like bargain hunting.
So, if you shouldn’t be looking for a “low-low price” provider, what then? We’d like to suggest that you should be looking first and foremost, for a great collaborative relationship—a seasoned guide, a highly capable and competent “got your back," trustworthy partner. You are interviewing, not shopping. You are looking for the best overall match.
95% of people narrow things down online from dozens to a few to meet. But, if you can’t find someone you can trust that makes a good fit for your project after three interviews, you’re probably not asking the right questions.
Just make sure you are comparing equals, design/build to design/build, with similar years in business, capabilities, and size to fit your project.
If you are still curious, check out our blog on why nearly 50% of homeowners choose the wrong remodeler.
