The "Get Three Bids" Rule Is Incomplete
Everyone tells homeowners to get three bids and pick the middle one. That advice is better than picking randomly — but it ignores the most important question: are these bids even comparing the same scope?
Two bids for the same kitchen remodel can vary by $40,000 not because one contractor is gouging you — but because they're literally bidding two different projects.
What Should Be in Every Bid
A complete contractor estimate should include:
If a bid is a single number on a piece of paper — that's a red flag.
How to Compare Bids Fairly
Normalize the scope first. Make sure every bid includes the same work. Ask each contractor to confirm: does this include demo? Permits? Painting? Cleanup?
Compare line items, not totals. A bid that breaks down materials and labor tells you much more than a lump sum.
Check the exclusions. The "cheapest" bid often has a long exclusions list — which means change orders later.
Ask about allowances. "Allowances" are placeholders for items not yet selected (tile, fixtures, cabinets). A bid with a $2,000 tile allowance may look cheap — until you pick tile and the allowance doubles.
Red Flags in a Renovation Bid
Getting Your Own Estimate First
One of the smartest things a homeowner can do before soliciting contractor bids is generate their own independent estimate using a tool like VegaEstimating.ai. When you upload your renovation plans and get an AI-generated estimate, you'll know the rough cost range going in — which means you can spot a lowball bid designed to win with change orders, or an inflated bid from a contractor who thinks you don't know any better.
Knowledge is the best negotiating tool you have.