Contractor Quotes After the Inspection: Getting Them in Time

Why quotes matter so much

For the real estate broker, the quote serves to negotiate the price. For the mortgage broker, it serves to adjust the file: amount to finance, work to include, margin to plan. In both cases, a reliable quote replaces a rough estimate with a number everyone can verify.

It's at the heart of every purchase-with-improvements file, as we explain in purchase with improvements and pricing the work.

Who to call, and for what

Each significant finding calls for the right specialist: a roofer for the roof, a drainage contractor for the French drain, a master electrician for the panel and wiring, a plumber for the water service or old pipes, a foundation contractor for cracks, on an engineer's recommendation if needed.

Check that each company holds the appropriate Régie du bâtiment licence. It's a requirement for carrying out most construction work, and something the lender may want to confirm.

What a good quote contains

A usable quote describes precisely the planned work, materials, quantities, what's excluded, the timeline and payment terms. It includes the company's licence number. A vague one-line quote allows neither serious negotiation nor convincing a lender.

Ask the contractor to refer to the finding in the inspection report. That ensures the quote actually addresses the problem noted, and makes it easier to compare two quotes for the same work.

How many quotes, and how fast

For significant items, two quotes are better than one: the gap between them gives a realistic price range. For smaller items, one quote may be enough. What matters is getting these documents before the relevant condition's deadline.

Contractors aren't always available quickly, especially in spring. Contact them as soon as the report arrives, specifying the deadline, and plan a written extension if needed. We cover these issues in a report delivered after the financing deadline.

When time is very short, ask whether the contractor can give a written estimate based on the report's photos, followed by a firm quote after a site visit. It isn't a substitute for a proper quote, but it can keep a negotiation moving while the visit is scheduled.

Using the quotes in the file

Once obtained, quotes serve three purposes: supporting a request to the seller for a price reduction or work, adjusting the loan amount or including the work in a purchase-with-improvements program, and checking that the borrower has enough margin for the rest.

Send them to the lender with the inspection report and any amendment to the offer to purchase. A file that presents the problem and its priced solution moves much faster than one where each question arrives separately.

Pitfalls to avoid

Some quotes cause problems. A quote much lower than the others often hides significant exclusions or incomplete work. A quote from a contractor connected to the seller may lack objectivity. A quote given without a site visit, for significant work, rests on assumptions that may prove wrong.

Compare quotes line by line, checking that they cover the same work. A price difference is almost always explained by a difference in content, and it's that content that should guide the decision, not just the final amount.

Keep all the quotes in the file, including those not retained. If the lender or the seller questions an amount, showing the range of quotes received is often the quickest way to demonstrate that the figure used in the file is reasonable and well supported.

A report that makes quotes easier

A precise inspection report, with photos and the location of each finding, makes contractors' work easier: they know exactly what's involved before even coming out. Some can give a first estimate from the photos, which saves time.

To obtain this kind of report on a client's behalf, see our page for partner brokers, and the complete guide for mortgage brokers.