🛠️ How to Hire the Right Contractor: Tips, Red Flags, and Must-Know Advice

Valerie Barber, REALTOR® • August 21, 2025

Starting a home improvement project—whether you’re updating your kitchen, adding on a new space, or building your dream home from the ground up—is a big commitment. One of the most important decisions you’ll make? Choosing the  right  contractor.

A great contractor brings your vision to life. The wrong one? They could cost you time, money, and a whole lot of stress. Here’s how to hire smart, avoid red flags, and set your project up for success—no matter the size.

Remodeling Projects: Do Your Homework

Remodels can seem simple, but there’s plenty that can go wrong. If you’re renovating a bathroom, redoing your floors, or updating your kitchen, take these steps before hiring:

✅Smart Tips for Hiring a Remodeling Contractor:

Ask for local references (and check them).

Verify licenses and insurance  for trades like plumbing and electrical. Verify their backgrounds and read online reviews. You can also check out the Better Business Bureau and if they’ve been certified by an industry organization. (For example, certification by the National Association of the Remodeling Industry recognizes highly experienced remodeling professionals who are capable of planning and managing complex remodeling projects. NARI offers a consumer search tool at its site to find remodelers in your area who’ve also agreed to abide by NARI’s code of ethics for professionalism.)

Schedule interviews with three to five contractors to gather bids. Ask questions such as:

  • How long have you renovated homes?
  • How did you learn this trade?
  • What do you specialize in?
  • How are you different from others in your field?
  • What type of license do you hold?
  • How much insurance do you carry, and what does it cover?
  • Does your insurance cover subcontractors you hire?
  • Are you bonded?
  • If your quote includes materials, do I have a say about selection?
  • Do you have pictures of projects?
  • Do you have at least three references?
  • If you’ve ever had a project go over money and time budget, what happened?
  • Have you had an unhappy client, and how did you deal with it?
  • Is there anything you can’t do regarding this proposal?
  • How do you ensure the quality of your subcontractors’ work?
  • Do you pull permits?
  • What percentage do you estimate for possible incidentals?
  • Why should I hire you for this job?

Get a detailed written contract  outlining the scope of work, timeline, materials, and payment terms.

Red Flags to Watch:

  • They insist on large down payments or cash-only payments: Be cautious if a contractor demands a significant portion of the payment before starting the work. Typically, reputable contractors request a reasonable deposit, often around 10-25% of the total project cost.
  • The contract is vague and doesn’t spell out the work to be performed: A well-defined contract should outline the scope of work, materials to be used, timelines, payment schedules, and other essential details. Avoid contractors who provide vague or incomplete agreements.
  • The contractor has bad or no reviews and doesn’t have references.
  • The bid seems too good to be true (extremely low): If a bid seems too good to be true, it probably is. Extremely low estimates may indicate the contractor plans to cut corners or add unexpected costs later.
  • They don’t have proof of insurance or you can’t verify their license: Ensure your contractor holds the necessary licenses and insurance required in your area. This not only validates their credibility but also protects you from potential liabilities.
  • They skip permits for jobs that require them or suggest you obtain the permits for the work: Many remodeling projects — like for fireplaces, outdoor kitchens, and room additions — require a permit from the city or county to ensure they’ll be completed up to code. Most remodeling contractors will file these on your behalf, but be cautious of those who don’t; it may be a sign they’re unlicensed. Whoever obtains and signs for the permit is responsible for everything, including fees and fines if something ever goes wrong.
  • Lack of communication or professionalism: Effective communication is key to a successful project. If a contractor is hard to reach, doesn’t return calls promptly, or avoids answering questions, consider it a red flag.

A reliable remodeling contractor will also help with permitting, coordinate subcontractors, and communicate clearly every step of the way.

Building a Custom Home or Adding to your Home

Expanding your home is a complex project that blends remodeling and new construction. When you’re starting from scratch or Expanding your home is a complex project that blends remodeling and new construction. adding a new bedroom, home office, or in-law suite, you’re not just hiring a contractor—you’re hiring a  team. Here’s a breakdown of who you should know:

Key Considerations:

  • You may need to  work with an architect or engineer  before hiring a contractor.
  • Ask whether your contractor has  experience blending old and new structures —including roofing, siding, and utility tie-ins.
  • Confirm permitting  and timeline expectations early on.

Advantages of Building a New Home

Building a new home offers several compelling benefits that go beyond mere aesthetics:

  • Customization and Personalization : Collaborate with your builder to design a space that reflects your lifestyle and preferences, ensuring every detail aligns with your vision.
  • Modern Energy Efficiency : New homes incorporate the latest energy-efficient technologies, such as advanced insulation, high-performance windows, and energy-efficient appliances, leading to reduced utility costs and a smaller environmental footprint.
  • Lower Maintenance Costs : With brand-new systems and materials, new homes require less immediate maintenance, saving you time and money in the long run.
  • Health and Safety Benefits : Modern construction standards mean improved ventilation systems and the use of non-toxic materials, contributing to better indoor air quality and overall safety.
  • Increased Property Value : A newly built home with modern designs and energy efficiency is often more desirable in the real estate market, potentially leading to higher resale values.

Common Contractors for New Home Construction:

  1. General Contractor  – Oversees the project and manages all subcontractors.
  2. Excavation and Foundation Teams  – Handle site prep and structural base.
  3. Framers and Roofers  – Build the home’s skeleton and roof system.
  4. Plumbers, Electricians, HVAC Specialists  – Install your core systems.
  5. Finish Contractors  – Complete the interiors: flooring, cabinetry, painting, and more.

Choose a general contractor with a strong portfolio and references for full builds, and be sure to check their scheduling practices, communication style, and how they handle change orders.

How to Avoid Contractor Pitfalls

Regardless of the size of your project, these rules always apply:

  • Always get it in writing and document everything.  A handshake isn’t enough.
  • Never pay in full upfront.  A 10–25% deposit is standard.
  • Compare bids carefully.  Extremely low bids can lead to surprise fees or cut corners.
  • Trust your instincts.  If something feels off, it probably is.

The right contractor is more than just a builder—they’re a partner in one of your biggest investments. Whether you’re remodeling a room or building a new home, it pays to be thoughtful, diligent, and just a little cautious.

If you’re not sure where to start or need trusted referrals here in Lake County, I’m always happy to help. The goal is to make your project not just successful—but something you’re proud of for years to come.

By Valerie Barber, REALTOR® January 23, 2026
Pre-rinsing feels like the “right” thing to do, but newer dishwashers are designed to handle food residue, and detergents can work better when there’s something to break down. This post covers when to skip the rinse, when a quick rinse helps, and tips for better results.
By Valerie Barber, REALTOR® December 1, 2025
Hello Friends,
More Posts