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Real Estate Tips
Thursday, March 21, 2024

How to Find a Contractor For Home Renovations

We’ve all heard the home renovation contractor nightmare stories. Shoddy workmanship, lack of communication, and even worse–work left unfinished with the funds stolen. The success of your home improvement project depends on hiring the right contractor. We’ve compiled a list of steps on how to find a contractor for home renovations. Find the right professional and learn a few mistakes to avoid.

Define the Project Scope

Knowing your scope and expectations up front helps:

  • Find the right potential contractors
  • Gain more accurate estimates from contractors

So don’t say when querying, “replace my siding.” Clearly outline your home renovation project’s scope, goals, and specific requirements.

Let’s say you want a kitchen renovation. What does that mean to you: to-the-studs kitchen remodeling or simply painting the cabinets and adding new appliances? It’s the same remodeling project but with two very different scopes of work. They also require different expertise. A full remodel will need a skilled contractor with experience in plumbing, electrical, gas lines, and general construction.

Research Remodeling Contractors

fact box about home improvement is the second highest consumer complaint category

When you’re looking at how to find a contractor for home renovations, take a multi-layered approach. Getting contractor connections from multiple sources is how you find a reliable contractor.

Referrals are worth their weight in gold, especially from someone you trust. But because a family member or neighbor had a good experience last year with their flooring installation, it doesn’t mean you’ll get the same quality work. Supervisors and laborers can change.

Shortlist who you want to work with by combining the following measures when researching specialized contractors.

  • Start with a web search using your intended home renovation project and “near me.” For example, “Landscapers near Mooresville, NC” or “Roof Replacement near Mount Pleasant, SC.”
  • Visit the contractors’ websites. You’ll find photos of their past work, a description of their work, years of experience, and testimonials. Look for licensing information, too.
  • Scrutinize online reviews for a well-rounded view of their work. The company’s on-site testimonials are a start, but look elsewhere for contractor recommendations. You want to see the good and bad reviews. People leave their feedback all over the web, such as on:
    • Angi (or Angie’s List)
    • HomeAdvisor
    • Houzz
    • Google
    • Yelp
    • Better Business Bureau (BBB)
    • NextDoor
  • A few of the above sites also serve as contractor connections. Some vet the contractors through customer reviews.
  • Does your neighborhood have a social group? Ask who they’ve used for similar work or if they have used the contractors you’re considering. See what repeat contractor suggestions you get.
  • Home shows don’t happen often, but if there is one near you, a visit is your chance to learn about local home contractors, see their work, and ask questions.

Check Licensing and Insurance

Confirm that the contractor’s licensing is in order. This is non-negotiable for legitimacy and safety. Most states have an online portal for the general public to search by license number for a contractor. It should show whether their license is current or any actions have been taken. Here are links to a few state licensing portals:

Legitimate licensed contractors should provide their licensing numbers to you at some point in the sales process.

Additionally, these portals may not show the contractor’s certificate of insurance and liability information. You’ll get this from the contractor, but you must verify with the insurer that their policy is in good standing.

Get Multiple Estimate of Costs

a whole-house remodel could run anywhere from $10 to $250 per square foot

Invite your top contractor choices to bid on the home renovation project. Make sure you give each reputable contractor the same exact scope of work so you can compare their project cost estimates apples-to-apples. Remember, the cheapest is only sometimes the best. Look at the prices, termination fees, timelines, and the scope of work in each estimate of costs. Keep quality of work and customer service in mind as you meet with each home contractor to discuss the scope of work. These estimates can also give you some idea of what the project will cost and what you are comfortable spending on the work.

Check References

Insist on and follow up with the contractor’s references to gauge reliability. You want to hear how their workmanship has held up over time. Reliable home contractors are happy to put you in touch with satisfied prior customers. Other factors to inquire about:

  • The contractor’s ability to stay on budget and timeline
  • How the contractor handled any hiccups
  • Their customer service

Review Portfolios

Visual proof speaks volumes. Assess if their previous construction projects align with your expectations. Especially if the home renovation involves drastic changes to the home’s style, you want to see if the contractor’s tastes match your own. Otherwise, there could be conflict about the final product.

Ask Questions

most private businesses, including home contractors, close within five years

During the bid meeting, ask questions about the contractor’s experience. Inexperienced contractors may come in with a lower cost estimate. Their lack of experience for your project could be a risk.

Inquire about subcontractors–if they use them, how they vet them, and how they manage on the work site. Larger projects are more likely to bring in subcontractors for the renovation process.

The contractor should give you a rough timeline for the project’s length and when they could start. Ask how they handle unexpected issues. Things do come up–a contractor has a car accident on the way to the work site, or the weather prevents work, or there’s a supply chain delay. You never know what could happen. How will the contractor handle any bumps in the road?

Finally, determine who will pull any required building permits and schedule inspections. Some projects may require you to adhere to building codes to submit plans to a local building department. Experienced contractors should be familiar with this step.

Formalize a Contract

Protect both parties with a binding agreement detailing every critical aspect of the job. This includes the full scope of work, the required deposit money, total budget, and a proposed timeline.

It’s not uncommon for a contractor to ask for an upfront deposit on larger projects. That’s partially for buying the building materials needed for the work. The deposit money also ensures you’re serious about the work. After all, contractors need to pay the bills, too. If you cancel, those days could have been spent helping another customer.

The larger the project, the more you’ll need to outlay. Projects that span weeks and months are better suited to paying in milestones. The contract should explain the amounts of money due at each milestone. The contract should also explain what parts of the renovation process may cost extra money. However, trustworthy contractors should be very good at giving an accurate estimate of renovation costs.

However payment schedule is arranged, read the contract and terms carefully before signing. Look at termination fees, insurance claim process, and work warranty.

Communicate Clearly

Know who your point of contact is for the entire project. The longer and more extensive the project, the more regular progress updates you should expect. Also, keep the lines open between you and your contractor. When in doubt, make a phone call.

Document all interactions and modifications related to your project for future reference. This can be valuable in case of disputes or misunderstandings.

Monitor and Inspect

You should regularly check in person on the progress of the home renovation. In fact, the best home improvement contractors expect regular walk-throughs and may schedule these with you at regular intervals. It’s your home, after all. You have the right to examine the workmanship to ensure it aligns with the agreed-upon timeline and specifications. 

If you can’t inspect the work, send a trusted resource in your stead. For instance, if it’s a new construction home, your real estate agent can stop by to see how the work is going.

Always finish the home renovation with a final walkthrough in person with the lead contractor. Ensure that all work is completed satisfactorily before making the final payment.

Hiring Mistakes to Avoid

Hopefully, following these steps will help you avoid con men posing as home contractors. Hiring the wrong contractor is an expensive mistake that draws out an already daunting process. But if you make the following mistakes…let’s say buyer, beware.

  • Ignoring Due Diligence: Skipping reference checks can land you an unreliable contractor.
  • Skipping License Checks: Not verifying licensing and insurance may lead to legal and financial problems.
  • Paying Upfront: Paying the full amount before work starts is risky; the contractor has no incentive to finish the work. Set up a milestone-based payment plan or give a partial deposit upfront.
  • Remote Quoting: Phone-based quotes can be significantly inaccurate. Insist on an on-site estimate of renovation costs.
  • Hiring Based on Personality: Friendliness doesn’t equate to job performance.
  • Choosing Price Over Performance: The lowest bid might also mean the lowest quality. Balance cost with expertise. Skilled contractors know how to do quality work efficiently.

The good news is the best home contractors want happy clients. They know how vital your referral and recommendation are to their business. These steps help you steer the entire process from start to finish and dodge common pitfalls in hiring a general contractor.

FAQ

Are home renovations worth the return on investment?

Updating an older home in a high-demand area can be a clever investment. Some are about boosting curb appeal to help sell the home faster. If you want to get the most value from a home renovation, this resource estimates the job’s cost, resale value, and recouped cost.

How do you pick between two contractors?

Sometimes, you have two home improvement contractors that give very similar pricing estimates and claim to have the same services. It’s up to you what makes the determination. It might be one fits into your schedule better or has a better workmanship warranty.

Can you bargain with contractors?

You may have some wiggle room when it comes to the project’s final cost. Contractors to want to protect their profit margin, but they also want to win your process. Contractors also have experience with pricing, and know how much materials and labor cost for the entire process. Still, there may be contractor suggestions that could save you money and keep the budget closer to what you’re comfortable spending.

Why hire a local home remodeling contractor?

There are pros and cons to hiring large agencies or a local general contractor. Part of building a reputation as a reliable home remodeling contractor is learning the local building regulations and how area home builders construct their homes. Contractor recommendations for local companies keeps your money supporting the community.

Updated July 2024

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Preston Guyton