It’s a Buyer’s Market, But Buyer Beware

Bill Lutz, an electrician with Generation 3 Electric in Philadelphia, shares his thoughts on dangers homeowners should be aware of:

Are you fortunate enough to have one of those recession-proof jobs or a reserve of savings? Now is the perfect time to realize your dream kitchen, have an addition built or update your house’s wiring. The market for home repair and improvement is grinding to a halt with this recession. As a customer, your importance has risen dramatically. Business owners are scrambling to find the best offers that they give to their customers. You can also feel good because your home project could help keep someone else employed. It can put food on someone’s table.

Beware new dangers are out there for homeowners. With all the layoffs that are occurring, there has been an influx of new contracting companies. A worker gets laid off. A magnet gets thrown on a truck, some business cards are made and you have a new electrician, plumber or contractor. But, many of these businesses are started by people who should not be running a business.

Hiring a new contractor or helping someone start a business using your home as their starter project can lead to disastrous results. Who will honor a guarantee after the job is done? Chances are this new business will not be around next year. The price is cheap but is that because you are dealing with a company that is not properly insured (so if someone gets hurt and the contractor doesn’t have insurance the lawyer will go after you). What if some new electricians do something that causes a fire three years down the road? Will you be able to find them? Not if they went out of business.

When dealing with some of your more established companies, don’t just look at price. I think homeowners can do way better if they ask for a little extra and not just try and cut prices. While you have the electrician changing your 100 amp service, ask him if he minds cleaning the gutters. After all, most companies have workers they don’t want to layoff. If you can understand the motivations of a professional company now, you can definitely get more bang for your buck.