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| 00:00 | TOM: Making good homes better, this is The Money Pit Home Improvement Show. I’m Tom Kraeutler. |
| 00:04 | LESLIE: And I’m Leslie Segrette. |
| 00:06 | TOM: Well, one question we often get from listeners on this show is whether we can recommend a good contractor for a project. While we can’t always suggest a specific pro, however, we can always explain how to find one who will do the job well anywhere in the country. And that’s where ANGI comes in. |
| 00:23 | LESLIE: That ‘s right. You know, ANGI and the ANGI app are your one-stop shop to find, compare, and research local service pros, book home services, and request project quotes. And it’s all for free. |
| 00:34 | TOM: And today, we’re very excited to have the woman who started it all, Angie Hicks with us. Welcome to The Money Pit, Angie. |
| 00:40 | ANGIE: Thank you. It’s great to be here. |
| 00:41 | TOM: You know, it is tough to find a contractor. And although I appreciate the fact that our listeners think that across our 465 stations, that we have a mental index of all the great contractors in those areas. We know everybody. Of course you do. We certainly don’t, but it always gives us comfo rt to be able to send them to your site or your app to help find a good contractor. Why do you think it’s so difficult today? It feels like it’s more difficult than ever to find pros when you need one. |
| 01:08 | ANGIe: For one, you know, a lot of pros are small businesses, so they may not have, you know, huge marketing budgets where they’ve got a billboard or signage or television ads or things like that that make them easy to find. So, you know, identifying them can be difficult that first. And then once you identify them, knowing if they’re an expert in the type of work that you want to have done becomes the next challenge. You know, do they have the experience installing asphalt roofs, or are they more a slate roof company, and going through all of those details. And as a homeowner, our home is our biggest investment. And you know but there’s lots of things about a home that we may not know anything about. And you know we want to make good financial decisions. So how do we make that decision? And that was really why we started Angie’s list, which became Angie. You know It was really to help homeowners figure out what companies are providing great service. So based on feedback from real consumers who have used the company. So you know understanding that track record can really make a difference in being able to find the right pro for your job. |
| 02:10 | TOM: It seems like there’s a real shortage these days as well with kids that are going to college instead of going into the trade. You know, before I started my construction business, before I was a home inspector, and before I got on the radio, I was a shop teacher. And we don’t have shop classes anymore. And it wasn’t like every student was gonna go into the trades. But most people learn what, what end of the hammer to hold with. You know, you bang with the metal end and not with the wood end. And now you know we don’t have it anymore. So I feel bad sometimes from the young homeowners that call us because they don’t have any knowledge in how to maintain a home and really turn to us for a lot of that information. Of course, turn to the internet, turn to the YouTube videos, w hich, of course, everything comes out perfect every single time when it’s a video, right? |
| 02:53 | ANGIE: Like, my favorite is going to the television shows that show kind of a, a complete remodel in a 30-minute show, and you’re like, “Not that easy.”. |
| 03:01 | TOM: Yeah, Leslie, you have a little experience with that, don’t you? |
| 03:05 | LESLIE: I’m like, that was the one complaint people would say to us when we would run into folks in the home centers. They’d be like, “You get so much done in a short amount of time.” And I’m like, “Sure, it’s boiled down to 30 minutes for you, but it’s two to three days for us.” And even that is pushing it. So I think people really have an unrealistic expectation to how long things take 30 minutes of the skill level required, the tools required. And Tom’s right. You know The sort of missing link of an education gap on this whole genre of skill set is detrimental to people. |
| 03:40 | ANGIE: It absolutely is. And Leslie, you bring up a good point. It’s advice I usually give for people who are thinking about DIYing. And I ask them to be very honest. Do you have the tools, the talent, and the time to do the project? Because those are the three key important components. And if you’re saying no to one of those, it’s probably best to leave it to a pro. But you all are right about the fact that we just have a labor shortage in the trades. And I think it does stem from less education early on in exposure to the trades that we saw you know a few decades ago. But it’s something we need to solve. And I think you know when we did a recent survey with pros, what we found was like 90% job satisfaction rate. That is a crazy high number, and it’s fantastic. And I think it comes from really the intrinsic value of the work that they’re doing. It’s something they’re proud of. You know They can drive by and say, “Hey, I put that kitchen in,” or, “I installed that roof.” Plus the flexibility of being an entrepreneur and, you know, really kind of, you know, setting your time, setting your schedule, which can create a lot of satisfaction for folks. |
| 04:46 | LESLIE: Well, and it’s interesting ’cause the good ones are always super busy. So it’s super important that we’re able to help folks really understand who the good ones are, why they’re the good ones, and how to find them. |
| 04:57 | ANGIE: And why they might be worth the wait. |
| TOM: We’re talking to Angie Hicks and she is the fonder of Angie’s List, that we now call ANGI. So when it comes to home ownership, knowledge is power. And there are things, though, that homeowners should be doing and should know about their homes that can help prevent problems. Why don’t we talk about some of those? | |
| 05:12 | ANGIE: You know, my favorite one, when I think about getting to know your home, the very first thing you need to make sure you know how to do is turn off the main water in your house. So where is the main water valve shut off in your house? Tom, you mentioned your home inspector. I mean, that is a great thing to learn from your home inspector. Go on the home inspection. |
| 05:27 | TOM: Oh, yeah. That’s so important. |
| 05:29 | ANGIE: Because they can point things out to you and you can ask questions. It’s incredibly valuable. But, you know, I believe that water can be your home’s worst enemy. So knowing where that water shut-off valve can avoid a disaster, turn it into a mild problem if you can get water shut off quickly. |
| 05:44 | TOM: In our home inspection company, we actually had a set of I think there were six or seven different tags, valve tags, that we would put on the valves during the inspection. So there was the main water valve, there was the water heater valve, there were the hose bibs, there were the ice maker valves, and so on. And people so appreciated that. We used to hear back months and years later that they were so appreciative of being able to know with confidence what those valves did. So you’re absolutely right. Understanding where they are and what they do and being able to access them quickly in emergency is really, really critical. It can save you tens of thousands of dollars in flood damage. |
| 06:15 | ANGIE: That’s absolutely correct. I think the other thing that I think we a lot of times kind of take for granted and don’t think about having a fire extinguisher in the kitchen and make sure that you know where it is, how to use it, and that it’s in good working condition. Because, you know again, this is another example of how you can avoid turning a small problem into a large one. Yeah. And also teaching your kids how to use it, right? |
| 06:35 | TOM: I mean, you’ve got young boys. Do they know how to use a fire extinguisher? Oh, 100%. And they know where it is. They know all kinds of fire safety in the house. And I think it’s super important. The kids and I have an evacuation plan in the event of a fire emergency. You know, sadly, a few years back, we had a home in town burned down, and the family was lost, which was horrible for everybody in our village. So we do go over all of this methods of safety, how to put out a fire, where the fire extinguisher is. And again, I think it’s something people neglect to discuss in their home. |
| 07:06 | ANGIE: They’re like, “Oh, I don’t need to worry about that. The odds that I need that are very slim.” But it’s that moment that you need it, that you need it. |
| 07:12 | LESLIE: Yeah. And that’s when you panic, so it’s good to practice and know. |
| 07:15 | TOM: I’ll tell you, years ago, when I was doing a lot of stuff with MSNBC, there was a fire training academy that used to train all the regional fire departments. They had some really cool facilities, but one of the instructors actually came to my house with the crew, and they did a test on my family and I, and they filled the house up with smoke. Now, it wasn’t real smoke, it was a fake smoke, but it just changes your perspective when you literally can’t see your hand in front of your face. You really get messed up in terms of your distance, even in a, in a home that you’ve lived in for many, many years. So understanding how to get in and out of that house in an emergency, and where the extinguishers are, and what you should be doing first, second, and third, is really an important discussion to have with your family. |
| 07:52 | ANGIE: Absolutely. |
| 07:53 | LESLIE: So, Angie, what do you think about home warranties? You know, you hear so often that there’s an opportunity to purchase a warranty for, especially in new construction. Are these worth it? I mean, does it make sense to kind of have this sort of additional protection or not really? Or is the answer, it depends. |
| 08:09 | ANGIE: It honestly depends on you and your situation. So, you know, first and foremost, you should always think about the warranties that automatically come with the house and the products and understand you know whether those are going to cover your potential issues. Sometimes people might think, “Hey, I might buy an extra warranty on my refrigerator because you know I don’t want to have to spend that money yet again if something goes wrong.” you know But make sure you know what those warranties are and know what they cover. And then additionally, sometimes people will receive a home warranty, for example, when they buy a house. Read the details. Understand what’s covered, understand what’s not, how claims are handled, what pros are going to be doing the work, because it all comes down to who’s going to be doing the work for you. And then also, you know don’t assume this is one thing I hear from time to time as well, is that something checked out fine on a home inspection, but the home warranty didn’t cover it. The home warranty and the home inspection are two different things, two different companies, two different contracts, etc. Make sure you understand the details so that you know what you’re buying and what you should expect. |
| 09:16 | TOM : We’re talking to Angie Hicks. She is the founder of Angie’s list that we now call ANGI. And Angie, you actually started this as an actual list, didn’t you? Was it back in ’96 or so? Was it a paper, a printed publisher? A paper. |
| 09:30 | ANGI: Exactly. This is pre-internet days. |
| 09:32 | TOM: You really were way ahead of your time. Good for you. Good for you. And let’s talk about understanding the different components of your home. I always told my home inspection clients that it was important to kind of have an inventory of key components and ages and protected life so you would kind of understand when you should expect to replace your roof and how many more years you may get out of your furnace or your air conditioning system because this way you avoid the surprises when it breaks down. |
| 09:59 | ANGIE: That’s right. And that’s really important for a homeowner because you might spend, you know, 1% to 2% of the value of your home maintaining, repairing, and updating it each year. And that could be a significant amount of money. And so you don’t want to have surprises. So you know when you’re making up your dream list for what you’d like to do around the house for you know next year, make sure you know the age of some of these important structural things that aren’t as exciting to do but are important to do. So if your roof is you know more than 15 years old, you’re like, you know at some point, I’m probably going to have to replace a roof. You know Kind of also think about the mechanicals, like your furnace or your air conditioner. How old are they? Because that can help you prepare for saving for them. And then also help you make those decisions about whether to repair or replace. Because sometimes when especially you know a furnace or an air conditioner gets later on in its life and you get a repair bill, it might just be better off to replace it. |
| 10:55 | LESLIE: You know, what I think is super interesting, Angie, is that 40% of new homeowners are really surprised at how much they’re spending annually on home maintenance. I think there truly is no understanding of what a home costs to own. So how can we help a new homeowner and even a homeowner who’s already in the house really understand what they need to set aside or how they can mentally prepare for the expense? |
| 11:19 | ANGIE: Well, when you’re thinking about you know kind of buying a home, for example, to kind of avoid that surprise with a new homeowner, you know when you’re laying out your budget, you need to pay for the mortgage, the home insurance, you know things like that, you’re kind of your taxes. You know Also budget 1% to 2% of the value of your home for maintenance and repairs. And I think sometimes people don’t have that top of mind because it’s not a hard cost at the time you’re buying the house, right? It’s something that’s going to come in the future. And so kind of thinking about that can help you think about what house I want to buy. You know What’s my budget? How much do I want to spend on my mortgage if I know I’m going to spend $300 or $400 a month on improvements? You know, maybe I want to bring my mortgage down a little bit. Maybe I want to bring my house price down a little bit. Also budgeting that kind of as you go along so that you know and one thing I recommend and I try to do this at the beginning of the year is walk around your house like you’re just getting ready to buy it because you’re never as critical of a house as the one that you’re about to buy. You know Write everything down, kind of put budget aside at that point, and then prioritize those items. You know. So, kind of group them by structural problems, mechanical problems, all the way down to that kind of new outdoor kitchen you’d like to install next summer. Then lay your budget against it. That way, you didn’t put the kitchen in, the outdoor kitchen in, but then discovered you needed a new roof. And then you’re kind of stuck in a money crunch. So kind of keeping a critical eye on the condition of your home will help you avoid those budget surprises. |
| 12:49 | That makes so much sense. Angie Hicks from ANGI. Thank you so much for spending some time with us here on the Money Pit today. Angie, really good to talk to you. Thanks for all the work that you’ve done to help homeowners find contractors to do their jobs well. There are so many out there and you are the key to connecting us with those pros when it’s time to take on a project. Angie Hicks, thanks again. |
| 13:12 | ANGI: Thank you. |
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