How to avoid being ripped off

SMH Small Business Trends

Author: Alexandra Cain

March, 28, 2014

http://www.smh.com.au/small-business/trends/blogs/the-big-idea/how-to-avoid-being-ripped-off-20140321-356r3.html

My brother’s about to do up the bathroom in the flat he’s just bought and has been getting quotes from various builders. I’m amazed at the variance in the prices – one guy quoted $18,000, another $12,000 and one guy came in at $8,000.

That’s a $10,000 difference between quotes for what’s ostensibly the same job. So how on earth should he know which one to pick?

Building is complex and there are many variables involved. Which means you need to get numerous quotes.

I spoke to Allen Cetinic, who runs Render My Home, about how to tell if you’re being charged a fair price. He says the process of quoting is a complex one. “The only way you can judge is by making sure you’re comparing apples with apples. Building is complex and there are many variables involved. Which means you need to get numerous quotes.”

Cetinic says there are many ways to approach a job, and many materials and finishes that can be used, which is one reason there’s such disparity in prices.

 “You might call in one electrician who’ll just quote you for a basic job and another one will give you a more comprehensive quote that might include things that need to be attended to over the next year. And that’s where people will go wrong – some will do a basic job and others will quote you on something that’s more thorough.”

He says it’s essential for consumers to do their research and interview people before agreeing to use a tradesperson for a job – it only takes five minutes to get a feel for whether you can work with someone. He also says three quotes might not be enough.

“You might have to speak to six or seven people before you find the right person for you,” Cetinic says.

So how should you compare quotes? One way, says Cetinic, is to be very clear on the scope of work. What does the quote include? Does it cover rubbish removal? How about cleaning up? What about painting? All these factors will influence the price of the job. It’s all about making sure your expectations are the same as the tradesperson’s. Don’t just assume you’ll get exactly what you want.

“Sharing quotes could be a good idea and make sure the quotes cover the same things,” he says.

Another important variable is the credibility of the service provider. Cetinic says: “Look at whether they have an online presence, think about where the referral to the tradesperson came from, how long they’ve been in business, their qualifications and their experience. It’s all about doing your research.”

Cetinic says there are no standard prices for jobs for residential building; there are some for commercial jobs because the scale of work on a square metre basis is usually so much greater than for work done on houses.
“Plus some contractors are opportunistic – when they’re busy they’ll charge a higher price and when they’re slow they’ll charge a lower amount just to get the work. Really, the only way to get the work done at the price you want to a standard that’s acceptable is to find a tradie you have a connection with,” says Cetinic.

Laorence Nohra, CEO at Tradebusters, which offers a tradesman co-ordination service, agrees prices depend on the inclusions and exclusions of a job.

“In general, rates vary from $60 to $90 an hour, which may or may not include a service fee. If someone was charging you $120 an hour that would look wrong to me.”

As to what sort of recourse consumers have if they feel they have been overcharged, Nohra says there’s very little if the home owner has accepted a written quote and that acceptance has been documented.

“Where you do have some recourse is when you’ve been charged extra for variables and what you’ve been charged is very different to what you were quoted on,” she says.

Cetinic says: “At the end of the day, consumers have to take responsibility. It’s not good enough to take a retrospective view. You need to have a paper trail that shows emails back and forth agreeing the scope of work and the price. No one wants to sit in tribunal hearings, so be clear on what you’re expecting and what you’ll pay for that.”

What's been your experience getting quotes from tradies? Share it in the comments below.

You’ve taken the BIG step in deciding to renovate and improve your home. Whether this is to increase your home value for selling purposes; to change, modify and personalised the look and feel of your home; to follow the latest trends and be up to speed with all your neighbours; or its to have street appeal and impress passers-by. Whatever the reason I’m sure the dreaded  feeling of dealing with all different tradesmen hangs over your head.

It doesn’t have to be that way. If you take the following steps you will hopefully have a successful experience and a house renovation bliss that will impress you and be the envy of others of the final product.

Plan, Prepare, Probe: Make sure you clearly know what you want and envisage as the final product of your home;  you have researched what would be aesthetically suitable and make an impactful look and feel; and finally you are aware of the benefit and features.

Design & Style: Whether you have a family, partner and/or living by yourself your personal style must be taken into consideration, so be aware what you want, how you want to be perceived and your home and Plan, Prepare, Probe. Check out the latest home design magazine to draw inspiration and look out for what your neighbours are doing to add that little something to their home to spruce it up.

Boring Budget  - Bang for your Buck: We cannot stress how important it is to establish your budget from the beginning. Just when you think you have considered everything something unexpected arises. Have room for movement, but be diligent and stick with your budget. Most importantly make it be known to your builder or tradesmen what your budget is, so there isn’t any hidden surprises, as many can take advantage of this.

Tradesmen Alert: There are many shonks out there, so make sure that they either have been referred to or you’ve done your research about them.

There are 4 important rules that must be met before you sign on the dotted line:

1. Call them - If they answer the phone or return your call within the hour, then they should receive tick.
2. Arrange a meeting – if they show up on time, they should receive another tick.
3. Experience - A competent tradesman or builder should know their technical stuff in detail and be able to explain it to you, another tick.
4. You as a person –must  like this person or their company, as you will be dealing with them greatly and you want the best result  - another tick.
5. Qualifications – This is a tough one, but you need to make sure that they are qualified, have all their insurances and are registered. The last you want to happen is have issues and neither party are covered – this could be disastrous and cost you more money and leave you with an unfinished job.
   
   

With the tough economical market you can’t afford to make any mistakes on any form of remedial or renovation projects as they can be expensive, so make sure you take adequate advice to steer you in the right direction. Speak to your local real estate agent or reputable suppliers / tradespeople - most common reason why property doesn’t  sell is because people don’t present their home visually and take too many short cuts.

Presentation of your home is important not only when selling but also what everyone thinks of you and street appeal.  And making sure you have professionals and experts that work with you to achieve your goal, and you will achieve your new renovated dream home.

The biggest concern homeowners like you have when it comes to choosing their contractor is the risk and uncertainty of having to make a decision that will deliver a successful outcome, ie, a completely stress-free experience, value for money and a job to be proud of.

The building industry is synonymous for being full of contractors and builders who constantly fail to deliver on key areas such as customer service and quality workmanship. Even more disappointing (but true) is that many lack basic personal qualities such as courtesy, integrity and reliability.   

It is important for you to understand that the ‘true cost’ of a job is not necessarily the number that appears on the quotation or invoice for you to pay at the end of the job. There are ongoing costs associated with cheaper products and services that will increase not only the amount of money you need to continually pay for years to come, but also the amount of time, stress, inconvenience and anxiety you will need to deal with in having to restore, repair and/or replace these items.

When making a decision on which contractor to engage, your objective should be to minimise the amount of risk, you as the customer are exposed to. Have I been given the best possible advice on this product? What happens if the contractor does not do what he promises? What happens if the work is faulty and as a result has affected other areas and items? What can I do if I realise at a later date that the contractor mislead me by carrying out the work defectively?

Reputable companies that are highly regarded amongst their industry peers will initially appear more expensive in comparison to other quotes, but the closer you examine the conditions and take into consideration the whole value factor, you will realise that these companies have built their reputations through delivering consistent excellence and commitment towards achieving total customer satisfaction, and will deliver you a better service that will result in greater value for money – no doubt about it!

The ‘Render My Home’ promise to you is this…

Whilst we may not always be the cheapest quote, we will guarantee that our companies’ services will provide you greater value for money than any other competitor.
 
Call us now on 0405 278 369, to discuss with the team at Render My Home, how to best approach your next project.

Wow! How about this property market of ours? Sydney is going gangbusters with real estate activity at an all-time high! Low interest rates, a new government, summer on its way… Bring it on!

It was interesting to catch up with our good friends last weekend after they spent a whole day house hunting in our local area. They had set out in the morning with a list of 11 properties to look at that had initially appealed to them on an internet search.

However, upon arriving to the properties one by one, they decided to walk into only six of them to make their inspection, but not even bother with the other five. Why? 

Well, according to them (and in their own words), ‘they looked crap!’. Unappealing, run down, too much work needed, generally not attractive enough to even warrant any further inspection… Gee, that’s very disappointing.

So it got my mind thinking about how many other prospective buyers felt exactly the same way and did exactly the same thing that same weekend, and drove right past the property because of its lack of street appeal.

And what if the seller had actually put some thought into better presenting their home to better attract potential home buyers, rather than have them drive right by as a result of feeling let down?

And more importantly I guess, what effect would this have on the final result with respect to the eventual sale price? Could a higher price have been achieved with just a little more thought and consideration put into the home’s exterior appearance.

I mean, after all, if the exterior appearance of the home is not appealing enough, then there is no reason for a prospective buyer to park their car, get out and proceed to the front door.

The inside of the home could be a hidden treasure with a newly renovated and well-designed kitchen, designer bathrooms, an amazing rear decking with outdoor entertainment areas, but without any curb side appeal from the street front, the seller misses out completely on the opportunity with this particular buyer.

Remember, it is only the simple things that can often increase the street appeal of your home. Minor adjustments can provide truckloads of character to your home, and will have car loads of prospective buyers expressing interest in your home and in turn, nudging the sale price way up beyond your expectations.

Check out www.rendermyhome.com.au for more ideas and inspirations on how to get your home looking its very best!

Isn’t it interesting the direction that TV program trends are evolving towards in recent years, especially with the whole ‘reality TV’ aspect that is just so captivating and enthralling to us as viewers. The ratings say it all!
 
First there was the Big Brother craze that came and went, and then the cooking, health and home improvement programs that appear to have really captured our interests and our attention spans.
 
Such shows that we have grown to love such as House Rules, The Block, Renovation Rescue, Location Location Location, Grand Designs, Selling House Australia and The Living Room, all focus on the ultimate objective of upgrading and rejuvenating  a property to look its absolute best. 
 
What this trend really tells us about ourselves is that deep down inside, we all aspire to live in a home that is attractive, appealing, well designed and which has a significant connection and representation to the individuals we are, as well as our family members.
 
Again, its all about maximising your homes street appeal and value by improving the external façade of your home, through careful consideration of its existing characteristics, as well as the introduction of new features that really make a strong and positive statement about you and your home.

Funny that… that’s exactly what Render My Home is all about!