5 Tips For Negotiating Cost with Air Conditioning Contractors

Installing a new air conditioning unit is a large investment. Especially now, with inflation skyrocketing and long wait times on many home improvement items. Currently, in 2023, HVAC installation costs typically range from $6,423 to $11,800. But homeowners can reduce the cost of a new air conditioning unit by negotiating the contract price and terms with their contractor.

In the article below, we have our five most helpful tips for negotiating AC unit and installation costs with your contractor. 

1. Compare Multiple Contractor Quotes

Modernize recommends comparing three to four quotes for your air conditioning project. Our research shows this range is the magic number for getting the best price on home improvement projects, including the cost of a new air conditioning unit. Here’s how to ensure your bids line up so you can evaluate them.

• Be transparent about getting several quotes as you meet contractors. Many businesses are willing to lower their bid or match competitor pricing.
• Provide each contractor with the same project details and thoroughly read each estimate to make sure you are making proper comparisons.
• Vetting your contractors will ensure you find the most reliable air conditioning contractor for your project. Check their licensure and make sure they are accredited through the Better Business Bureau. You may find a lower price with a less experienced contractor, but if something feels off about a contractor or business — go with your gut and be aware of scams. If a bid is too good to be true, it probably is.

To help homeowners easily vet and find a trusted air conditioning contractors, Modernize has created a free contractor checklist. It has everything you need to ask to ensure you are hiring someone you can trust.

2. Discuss Your Budget with Your Contractors

Simply asking your preferred contractor to lower their estimate is a difficult request. Instead, seek their professional advice on how to keep the cost in line with your budget. Here are a few things to consider asking.

• What do they recommend as more affordable air conditioner brands that are still high quality? This creates an open conversation and shows you value their expertise. Tell them you appreciate any money-saving recommendations they can share. 
• What are common surprise expenses the contractor has encountered in the past when installing a new AC unit for a homeowner? How should those costs be budgeted in? Ask that any unexpected project expenses will be presented in writing to help you remain within your budget. Surprises, in other words, shouldn’t surprise you or your contractor. And they should definitely not surprise your investment.

Compare local contractors with our local HVAC contractors near me page to see quotes from reliable heating and cooling contractors in your area who can help you decide what kind of budget to expect with an HVAC replacement.

3. Get Clarity on the Warranty, and Ensure It’s Part of the Price

Warranties will also impact your quoted cost. Most installers offer manufacturer’s warranties that protect you from faulty equipment. Some might offer additional guarantees for the installation, as well, covering potential damage to your house.

Additionally, use the warranty as a bargaining chip. Shorter warranty periods should have lower prices up front. Discuss your particular needs for a new AC unit thoroughly with your contractor to choose a warranty that fits your budget without losing out on the most important elements a warranty covers.

4. Take Advantage of the Off-Season

Air conditioning repairs are highest in the winter and summer. If your project is not urgent or an emergency, negotiate the timing to take advantage of “off-season” rates.

If you can wait to have your new system installed in the fall or spring when AC contractors are typically less busy, you can negotiate a better price. Contractors may also offer additional discounts and savings during these slower seasons.

5. HVAC Contractors Get Second Opinions — You Should, Too

Since your contractor has (literally) been around the block and has the experience you might lack, be sure to consult close friends and family about the major steps of your home improvement journey.

If you are short on time or don’t want to do the legwork on finding contractors to get quotes from, Modernize can help. We can pair you with up to four professionals in your area who are available for your project and who we have already vetted.