You need to have your foundation repaired. These words can strike fear into homeowners, and you immediately think about your bank account. You may even consider putting off the repairs in hopes that they’re not as bad as the inspector said. Putting off the repairs is the last thing you want to do because they will only worsen over time and become more expensive.
Unlike saving up for home renovation, repairing your foundation is a big money repair that can quickly drain your savings. In fact, 65% of Americans say their home needs repairs they’re unable to afford to prevent further damage. Having the money set aside for required repairs can be even more challenging if you recently purchased your home; over 40% of homeowners had to repair their home within the first year.
If you’re unable to afford foundation repair, there are a few things you can do, one of which is negotiating with contractors. This may come as a surprise, especially if you haven’t dealt with them before. The trick to negotiating with them is not making it feel like a negotiation. Click here for more information.
How to Negotiate Foundation Repair Prices
● Get Multiple Quotes
Getting more than one quote helps to ensure you get a fair assessment of the repair costs before signing a contract. You should get three to four estimates before deciding on the price you’re willing to pay. When you get each estimate, you can also negotiate the cost with the contractors. Most of the time, companies are more than willing to work with you.
● Research The Companies
There are a lot of contractors out there that are talented and honest; however, the handful of shady ones will take your money without making the repairs. Your foundation is much too necessary to take risks when a few simple calls can reassure you.
● Do Your Homework
Before deciding on a foundation repair company, verify their credentials, including licensing, bonding, and insurance. Read reviews, ask for references, and look at work they’ve done in the past. Find out what the materials cost before negotiating a contract. Sometimes companies have a specific brand they always use, and there may be a less expensive option that works just as well. Keep a list of materials and their estimates to know if they are making unnecessary purchases, and you’ll have leverage during the negotiations.
● Schedule Work During Their Offseason
Most companies have a slow season, and this is no different with foundation repair companies. During these times, they may be more willing to negotiate for a lower price. Scheduling your project ahead may save you money and give you time to save more money.
● Be clear about your budget.
Talking money can be awkward; however, when talking with a foundation repair company, it shouldn’t be. Discuss your budget with them, so the two of you are on the same page. You can also give them a figure lower than you can afford because it gives you both some wiggle room.
● Offer To Purchase Supplies And Materials Yourself.
When hiring a company, contractors offer to purchase the materials you need for the project and include that price on the estimate. Ask them if buying the supplies yourself will save you money.
● Ask For Suggestions On How To Save Money.
If the bid is outside your budget, ask them if there is any way to decrease the price. They are experts, and they may be able to make changes that could save you a few thousand dollars. Having a conversation about areas to scale back doesn’t undervalue him but instead shows him you value his input.
● Be Respectful
When negotiating with a company, you can be polite while still being firm. Speak confidently yet in a persuasive tone. You want this person to help you, so make sure not to come across as aggressive even if you’re frustrated. If the contractor respects you as a person, they’re more likely to work with you.
● Don’t Be Afraid To Say No.
When you have more than one estimate, when one company refuses to negotiate on the price, you have others to choose from. Telling them you’re going with someone else may also make them willing to find ways to lower the cost.
Ways To Finance Foundation Repairs
When you find out that your foundation needs repairing, the first thing you should do is call your homeowner’s insurance. While most of the time they won’t cover it, there’s no harm in asking, and you might get lucky. If it’s not covered, don’t panic. You have many other options available to you.
Foundation Repair Grants
If you don’t have enough equity in your home for a loan, some grants are available. The U.S. Department of Housing and Urban Development has loans available to help individuals with low or moderate incomes. Those with lower incomes living in specific areas may be eligible for loans or grants from the U.S. Department of Agriculture. To qualify for this program, your income has to be less than 50% of the median income for the area.
Put It On Your Credit Card
While using your credit card isn’t a great option, sometimes it’s your only one. Of course, this will depend on several things, such as your credit card limit, your ability to pay it back, and your credit history. Before deciding to do this, make sure to check out your APR; lower rates won’t be that much, but cards with high-interest rates aren’t recommended.
Home Equity Loan
If you have equity in the property, you may qualify for a home equity loan. Make an appointment with your bank and see if they can lend you the money for the foundation repair. Before signing the loan, make sure you have a reasonable interest rate, and you’ll be able to pay it back.
Ask If The Foundation Repair Company Offers Payment Plans
For those who can’t afford to pay upfront, some companies accept payments over a certain amount of time. This loan is typically set up with a partner financial institution similar to a car dealership. The loan will allow you to get the repairs you need without putting money down first.
Foundation Repairs Are Essential
While foundation repairs are essential, there’s no need to pay more than you should. Learning how to negotiate with contractors, hire them, and screen them helps you become more assertive and get the most for your money.
