How to Find the Right Home Improvement Contractors

Whether you’re making room for the arrival of a new family member or getting your house modernized before you put it on the market, a huge portion of the success of your home renovation is going to depend on who does the work.

That means picking out the right home improvement contractor is arguably the most important decision you’re going to make. But in a world of conflicting online reviews, ads that seem too good to be true, and rates that are all over the place, how do you pick out the right contractor for your renovation? Let’s go over a roadmap that’ll help you avoid scams, and get your work done for a fair price.

Make sure you know what you want

Before you start contacting contractors, sit down and write up a detailed plan for the work you want to be done. Get as specific as you can. While you’re at it, calculate how much you’re able to spend on this project. Before you can find the right contractor for your home improvement project, you have to know exactly what that project is and how much it’ll cost!

Another important note here: if you’re renting, or in a rent-to-own property, make sure the work you envision is allowed under your lease.

Ask friends and family

If you’re looking for a good real estate agent, dentist, or long-distance moving company, the first thing you do is ask your friends and family if they can recommend someone. You can use the same method to find a good home improvement contractor.

If you have friends who’ve had their homes renovated recently — and especially if they had work done that’s similar to the renovations you’re considering — ask them who they used, and if they were satisfied with their work. These references from people you trust can yield more authentic information than general references, who may have an undisclosed connection to the contractor or may simply be reluctant to criticize.

Get recommendations from insiders

One strategy to find a contractor is to head to Home Depot early in the morning and see who’s buying materials for the day’s projects. The logic is that these are the kind of well-prepared, conscientious, and experienced contractors you should be looking to employ.

A related strategy is to ask employees at lumberyards, hardware stores, and Home Depot about which contractors are consistently working, paying their bills on time, and using high-quality materials. While it may take some persuading to get the employees to give up their intel, these people often have valuable insight into who’s worth your time — and who’s not.

Interview your top candidates

Once you’ve compiled a list of potential contractors, give each of them a call. Outline the project you envision and the rough budget you’ve calculated to get their impressions.

Make sure you ask if they’ve taken on similar projects before. Building out a new bedroom suite is a lot more complicated than refinishing a floor or moving a refrigerator. Also, ask if they can provide up-to-date references and if they have a trusted network of subcontractors. You don’t have to get too in-depth. At this point, you’re just trying to determine who’s sufficiently experienced, and who might be willing and available. If you have a specific time frame in which you need your renovations completed, now is the time to make this clear.

Get some face time

Once you’ve talked to a good number of contractors, narrow your list down to the best three to five, and set up brief face-to-face interviews with each one.

Why should you spend time on in-person interviews when you’ve already conducted a phone interview? Well, you’re not only going to conduct business with your contractor — you’re also going to be de facto roommates for the duration of the project, as they’ll be in your home, all day every day, for the weeks or months it takes to complete your renovation. A face-to-face interview is an important step to make sure your personalities and communication styles mesh.

Do your due diligence

Even if your contractor came highly recommended by family and friends, and you had a great connection during your interviews, don’t overlook essential due diligence.

If the contractor provided references (and they absolutely should), call the references and ask them about their experience with the contractor. Look up online reviews on sites like Yelp and Trustpilot, and check the Better Business Bureau or your state’s consumer protection agency to see if anyone has registered complaints against the contractor. This is also the time to confirm their insurance and licensing.

Try to do some “real life” due diligence by asking if you can visit a contractor’s active job site and check out their operation. Does the job site appear to be neat, efficient, and safe? Is the project on schedule and budget? If you can have a quick chat with the homeowner, that could yield valuable insight.

Comparison shop …

When it’s time to get estimates, bring in at least three to five contractors. Seeing a spectrum of potential bids will give you a sense of how much your project will cost. Ask contractors to submit itemized proposals breaking down costs like materials, labor, profit, etc. Any estimates that are extreme outliers should be a red flag, whether they’re on the high end or, yes, on the low end.

…But don’t be cheap

Some homeowners can be dazzled by a very low bid, thinking they’re going to get a great deal. But contractors who submit significantly below-market bids are probably going to cut corners with labor and materials, or they’re using the price to compensate for a lack of experience. Any seasoned house flipper can tell you that taking the lowest bid often leads to regret down the line. If you find that your renovation budget is too low for the work you need to be done, there are some great credit options for homeowners.

Talk money

Ask your contractors about how they handle payments and deposits. A standard deposit to secure your spot on the contractor’s schedule is around 10%, though they can range up to 25%. Anything higher than that is unusual. A standard payment schedule includes an upfront deposit, 25% payments at each one-third mark of the project timeline, and a final payment of 15% upon completion.

Draw up the papers

Once you’ve settled on a contractor, produce a detailed contract that lays out payment schedules, the scope of work, timelines, materials and subcontractors, and all required lien releases. This kind of clear, detailed agreement protects you going forward, and enables the contractor to proceed with confidence and clarity. If your schedules are too hectic to sign in person, there are a lot of dependable online e-signature services available.