Despite the great gains in home buying by blacks, they still lag far behind other races when it comes to home ownership. However, there is another area that black homeowners put at the top of the list. According to the latest study by HUD (US Housing and Urban Development), black homeowners pay more for home improvements and repairs.
They pay up to 36% more than whites and 23% more than Latinos for the same or similar repairs or improvements.
This article will suggest ways to overcome this problem. Although discrimination, racial bias, and red lines still exist, there are specific actions Black homeowners can take to ensure they get the lowest possible price for home improvements and repairs.
President Bush pledged $50 million to combat abuse. In that speech he revealed a 2002 study by the Department of Housing and Urban Development that showed that, in general, minorities get less information, less assistance and less favorable terms.
Here are some tips to help you get the lowest price on home improvements and repairs.
Many black homeowners hate to deal.
For many reasons, black homeowners are less likely to bargain, haggle, or shop around. Not negotiating and comparing prices is a formula for paying the highest prices when it comes to buying home improvements and repairs.
According to the study, black homeowners who settled for the higher price wanted to get the job done as quickly, conveniently, and affordably as possible.
In addition, the cost resulted in a higher price for home improvement and/or repair.
Another factor revealed that many black homeowners assume that the prices of all contractors and repairmen are the same.
This causes many black homeowners to settle for the first person to give them a price estimate that is reasonably affordable. Especially, if the repair is an emergency, like broken pipes, clogged toilet, faulty wiring.
That’s why it’s a good idea to think ahead and keep up with the cost of various home repairs, mainly plumbing and electrical. For example, hourly charges? Free estimates or not? Overtime for weekends or after afternoon or not?
It’s a good idea to keep a file of at least 3 plumbers, 3 electricians, and 3 carpenters and any other home improvement or repair services in one file that you can access in an instant if needed.
An additional tip would be to check rates and prices before you need them. Put each price on a card so you can see it at a glance. You’ll thank yourself for doing this when you have your next emergency repair. You will save time and money.
Bargaining: The difference between overpaying and saving money.
Many people dread the idea of trading. They find it intimidating, confusing and unkind to participate. This is an attitude that real estate agents, loan officers, car salesmen and insurance salesmen use to fatten their pockets.
Because many black homeowners are afraid or reluctant to negotiate, they often pay higher prices than white, Latino, and Asian homeowners. Because? Because they are more willing to negotiate, haggle and compare before making a purchase decision based on research.
Here are 7 steps African-American homeowners can use to negotiate down the price of home repairs and improvements:
1. To become a confident negotiator, you must do your homework. What is the going rate for labor to repair or improve the home? What is the cost of the item or materials (wholesale and retail)? Advance preparation is the key.
2. Remember that to trade effectively you must always be willing to walk away if the price is too high. If you have to have it now, your bargaining power is drastically reduced.
3. Generally speaking, the higher the price of a home improvement or repair, the more negotiable the price will be.
4. Price is not the only factor when negotiating. Size, color, material, quantity, service, length of warranty, and the like may also be included or interchanged.
5. Always make sure that the person you are negotiating with has the power to make the final decision. This is a key mistake for beginners, negotiating with a worker or vendor who does not have the authority to change the price, terms, or service. Resulting in a waste of time.
6. Always try to have other options. The more options you have, the better and more effective your negotiations will be. Always have a plan B and a plan C.
7. If after reading the 6 steps above you are still wary of negotiating, find a relative, friend or associate who is good at negotiating to help you. And continue learning to negotiate. It is the key to getting the lowest prices.
Now that you’ve read some of the key factors why black homeowners pay the highest prices for home repairs and improvements, use them to find better deals.
