How NOT To Get Ripped Off By Your Contractor

For a new investor, finding a trusted contractor to work with is critical. with Form Simplicity offers these recommendations:

Make sure the contractor you hire has an active license in your state.

This is number one. Go online and search for their name. Make sure the company’s name is active and look for the names of the people within the company. Sometimes, the person you are hiring is not a contractor and is working under the license of someone else. Know this upfront before you make a commitment to avoid potential risks.

You want to make sure that the person you are dealing with is a licensed professional with work under their belt in your state. If anything goes wrong, you can file a complaint with the City or State licensing bureau. If any issues arise while the work is being performed, you can bring in an Inspector to make sure it is being done correctly and according to the local building standards.

When you hire someone to remodel a home and they don’t have a license, it is going to be very difficult, if not impossible, to take any recourse that will bring you a satisfying result.  By hiring a licensed person, at least you know the licensing state, has done some backgrounds check on them.

Check their online Reputation and Reviews

Most of us today, learn about those we work with by what people are saying online. Check out their reviews, and if there have been any complaints filed against them. The Better Business Bureau (BBB) is a good place to start.

Look into your contractors’ background

Whomever you decide to hire, make sure that you can trust that person. That can be a very big endeavor, yet there are steps you can take to minimize your risk.

There are many good and bad people that do not want the headache and expense of getting a contractor’s license, so they work under the license of another person. Know this beforehand and check out the work they have done.

Know as much as you can about the background of the person you are entrusting with keys, and the remodel of your home before making a decision.

Interview the contractor

Find out if he or she will be the one doing the job and ask how hands-on they will be. Will they be doing the work themselves or hiring others under their license to do the work? Does the contractor you hire plan on showing up every day to make sure the job is completed on time and correctly, or will they be performing multiple jobs at once and only available via phone or text?

Will the contractor you hire commit to a start date? I have seen more than once a contractor saying they will begin work next week, take your deposit, and then call to postpone your job. This is common practice. Find a contractor who has a track record of showing up and completing the job within an agreeable time frame.

Yes, some things can get out of our control, like weather, building inspectors and unforeseen problems. Still, you want a contractor who shows up when they say they are going to start the job.

Check out their referrals

Rule number one is to go see their work when possible. At the very least, definitely call to verify their references. Many contractors will show you photos of the work they have done. Yet, how do you know if it was truly their work?

Get multiple estimates

Get estimates from at least 3 different contractors. I believe that you get what you pay for in life. So remember, the cheapest bid does not mean it is the best. Many times, the cheapest bid ends up being the most expensive due to delays and adjustments in price that the contractor adds during the course of the project.

Structure payments so it is a win-win.

Consider paying for the materials and supplies up front. Either you can buy them, or they can purchase them and provide receipts. Also, check that you are paying for items that were purchased for your job and not for anyone else’s. Pay for work completed during various phases of the project. For example, the first deposit is made once 1/3 of the job is completed, then 1/2, then 3/4 and a final payment once completed. This can help protect you from the contractor holding all the cards (money) and then delaying the start or completion of the remodel.

Make sure permits are pulled and closed when the job is finished.

I can’t tell you how many times prior to a closing, the title company finds that there is still an open permit for a job that was done years ago. It usually shows up as a lien on the property.  It can delay the closing and cause undue aggravation. So, make sure the permits are closed and check with your city, county or local municipality that this has been done when the work is completed.

Written for Form Simplicity by Janice Zaltman, a Realtor, LEED AP, Marketing Coach and Writer with more than 20 years of experience in the sales, marketing and media fields.

To read the full article, click here.