If your renovation quotations are far apart

Ever looked at two renovation quotes and wondered why there's such a big difference? Here’s a quick and easy test to help you spot if you’re truly getting fair quotes!

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We call it the 20% rule. If two quotes are more than 20% apart, chances are, they’re not a straight “apples-to-apples” comparison.

So here’s a story. The other day, an owner came up to me saying, “Eh, how come one ID quoted me $25k and the other $20k for the same requirements?” At first, it does seem strange, so we told him to send the quotes over for me to take a look.

Just as we thought, the ID quoting $25k included certain items the $20k ID left out. That’s where the 20% rule comes in—it’s an easy checkpoint for spotting what’s missing and whether the quotes are actually comparable.

And funnily enough, that owner also admitted he hadn’t really looked through each line item. He was just looking at the final number, which is super common.

Source: Deconstruct

Here’s why you need to be aware of this. If I were a shady contractor, I could easily leave a few items out to make my quote look lower.

Meanwhile, the honest ID who’s quoting you with everything included ends up looking more expensive. It’s a tactic, but knowing the 20% rule can help you catch this.

A lot of IDs and contractors have a profit margin that falls between 15% to 40%, but most are in the 20-30% range. So if there’s a 20% difference between two quotes, it’s either that one ID is mass market budget-friendly and the other is boutique/architect level —or, more likely, the line items just don’t match up.

From all the quotes we’ve seen, this rule is 80% accurate in spotting mismatches. Give it a try the next time you’re comparing quotes, and share with your friends too!

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