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    7-5. Always get three or more bids. - Electronic Edition

    7-5. Always get three or more bids. - Electronic Edition
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     Sometimes you are sure which sub or supplier you will choose for something well in advance. In those cases it seems unnecessary to get a second or third bid. However, those additional bids may bring surprises in prices, valuable new information, or negotiating leverage with your chosen source. The key is to be organized to obtain additional bids with very little extra effort.

     Force yourself to think of three bids when buying a big-ticket item. This applies to labor, which is the lion’s share of new house cost, and it applies to material components as well. The average difference O-B’s reported between low and high bids was 34%. Theoretically, a “one-bid” average O-B custom house budget could be $119,000 more expensive than one based on two or more bids for each item.

     Readers have reported that this is true even when the bidder is your friend. There can be much lower prices out there that you don’t know about.

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