How to Find, Hire, and Work with Home Contractors
Whether you’re tackling repairs identified in your home inspection or planning renovations to build equity, working with contractors is an inevitable part of homeownership. Knowing how to find reliable contractors, negotiate fair terms, and manage projects protects your investment and your sanity.
Finding Qualified Contractors
Get referrals. Ask your real estate agent, neighbors, friends, and family for contractor recommendations. Personal referrals from people whose judgment you trust are the most reliable source. Check credentials. Verify state licensing, insurance (both liability and workers’ compensation), and bonding. An uninsured contractor working on your property creates enormous liability risk for you. Read reviews carefully. Online reviews on Google, Yelp, and the Better Business Bureau provide patterns—look for consistency in praise or complaints rather than isolated reviews. Interview multiple contractors. Get at least three bids for any significant project. This helps you understand the range of pricing and approaches.
Evaluating Bids
Don’t automatically choose the lowest bid. Evaluate each bid for detailed scope of work (vague bids lead to disputes), quality of materials specified, realistic timeline, payment schedule, warranty on workmanship, and professionalism of the proposal itself. A contractor who submits a detailed, well-organized bid is more likely to run a well-organized project.
The Contract Essentials
Never start work without a written contract. Essential elements include a detailed scope of work with materials specified, total price and payment schedule (never pay more than 10% to 30% upfront), start date and estimated completion date, change order process and pricing, warranty terms on both materials and labor, insurance and licensing information, and dispute resolution process.
Managing the Project
Communicate regularly. Establish a communication rhythm—daily check-ins for major projects, weekly for smaller ones. Document everything. Take photos throughout the project, keep records of all communications, and document any changes to the original scope. Inspect work at key milestones before authorizing the next payment. Don’t make the final payment until all work is completed to your satisfaction, the site is cleaned up, and you’ve received lien waivers from subcontractors.
Red Flags to Watch For
Be wary of contractors who demand large upfront payments (more than 30%), don’t provide written contracts, pressure you to decide quickly, can’t provide references, aren’t licensed or insured, or offer prices dramatically below other bids (they may cut corners or add costs later).
Build Your Contractor Network
Over time, building relationships with reliable contractors for various trades—plumbing, electrical, HVAC, general construction—saves you the hassle of searching each time you need work done. Your NearbyRealtors agent is an excellent starting point for building this network, as they work with contractors regularly and know who delivers quality work.