A Homeowner’s Guide to Hiring Contractors

What would you do if a contractor took your deposit and disappeared? I’ve seen this happen firsthand, and it’s more common than people realize.

There are simple steps you can take to protect yourself before hiring a contractor, and that’s exactly what I want to share.

A client’s hard lesson. I had lunch with an elderly client who hired a contractor and gave a deposit without checking them first.

Unfortunately, that contractor skipped town and kept the deposit. Later on, we found out that the contractor had been arrested and would be serving jail time. But by then, the money was already gone.

He was left in a really bad place, and it’s something I don’t want anyone else to go through.

After that experience, I created a homeowner protection guide focused on hiring contractors safely. Every homeowner should know this, especially when hiring someone new. Even if a contractor comes highly recommended, this guide can help you stay safe and prepared.

Questions I recommend you ask every contractor. In the guide, I included the top 10 questions every homeowner should ask. Here are a few of them:

• Are you licensed and insured?
• Can you provide recent references? At least three people they have worked with who were happy with the results
• Do you have workers’ compensation insurance in case someone gets injured on the job?

Red flags you need to watch out for. There are also clear warning signs I always tell people to look out for:

• Asking for a large deposit upfront
• No written contract
• No license or proof of insurance

If you see any of these, you should be very cautious.

How to protect yourself financially. One of the most important things to consider is how you handle payments. Never pay in full upfront. Instead, use milestone payments, where you pay in stages as the work progresses.

It also helps to have a clear payment structure:

• When to give the initial deposit
• When the next payments are due
• What work must be completed before each payment

This keeps you in control of both the project and your money.

Homeowner protection agreement. Another thing I always recommend is having everything clearly written down. This agreement includes:

• Scope of work
• Payment terms
• Timeline
• Licensing and insurance
• Permits

If anything changes during the project, those changes must be in writing. This helps avoid confusion and protects everyone involved.

You should also ask about warranties. Find out if they offer a one-year or two-year warranty on their work.

What you should expect during the project. When a contractor is working in your home, they should respect your space. Make sure your floors are protected.

From my experience, many contractors can be messy and may promise to clean up later, so it’s important to keep things organized throughout the entire project, not just at the end.

Why do you need a way out? It’s also important to have a termination clause in place. Knowing your options if something goes wrong gives you peace of mind before the project even starts.

If you are planning any work on your home, no matter how small, and you’re not sure where to turn, just reach out at (610) 709-5147, email john@jrsrealtygroup.com, or visit thejrsrealtygroup.com. I can connect you with vetted, licensed, insured, and well-reviewed contractors.

There’s no cost or obligation. I’m here to guide you and help you avoid situations like the one my client went through.

At the end of the day, taking a little extra time to ask the right questions and set things up properly can protect your home, your money, and your peace of mind.