How to Negotiate With a Contractor

Set your budget for the home improvement project. This gives you a reference point as you go into negotiations with the contractor.

Write a detailed list of the projects the contractor will handle. Verify that the contractor has all of those elements included in the pricing and timeline of the project. Determine if you want to tackle any part of the renovation yourself and discuss this with the contractor to ensure he agrees.

List the specific types of materials you want for each remodeling element. For example, decide on the type of wood for the cabinets, countertop material and finish on the faucet for a kitchen remodel.

Visit a home improvement store to get pricing information for the materials you want to use. This allows you to evaluate the material cost estimates provided by the contractor. Use the pricing to negotiate down his pricing if it is higher.

Contact at least three different contractors for estimates. Use the estimates from each of the contractors as a negotiation tool with the others. Your preferred contractor may lower his price to get closer to a competing contractor.

Request an estimate that breaks down all of the costs and details of the agreement. Review the estimate and highlight any terms or costs you want to negotiate. Write notes on how you want the terms to change in preparation for negotiating.

Present your budget and any required changes to the terms, such as the length of time the project will take to the contractor. Use a firm, yet friendly. tone to let him know those are the terms you need. Determine if the compromises made by the contractor are enough to satisfy you. If not, continue working with the contractor until you come to an agreement or move on to another contractor.