10 Critical Red Flags to Watch for When Hiring a Home Contractor

When it’s time to tackle a home improvement project — whether it’s a bathroom upgrade or fixing up the roof — hiring the right contractor is crucial. A good one can bring your vision to life smoothly and on budget. The wrong one? That can lead to stress, unexpected costs, and poor results that may even lower your home's value.

To help you avoid a home renovation horror story, here are 10 warning signs every homeowner should look out for when hiring a contractor.

1. ❗ No License or Insurance? That’s a Dealbreaker

Why it matters: Licensed and insured contractors are held to higher standards and provide protection if something goes wrong.

Warning sign: They dodge the licensing question or say it’s not necessary.

What to do: Verify their credentials with your local licensing board and ask for proof of liability and workers’ comp insurance.

2. 💰 Asking for a Hefty Advance

Why it matters: Asking for too much money upfront can indicate cash flow issues — or worse, a scam.

Warning sign: They want more than a third of the cost before starting or only accept cash.

What to do: Pay in phases based on work completed. Keep receipts and avoid paying large sums before materials are delivered.

3. 📝 “No Need for a Contract” — Yes, There Is

Why it matters: A written agreement protects both parties and keeps expectations clear.

Warning sign: The contractor avoids putting things in writing or gives you vague details.

What to do: Require a detailed contract with pricing, timelines, materials, and scope of work spelled out clearly.

4. 📷 No Photos, No Past Clients, No Thanks

Why it matters: You want to see proof of past projects and hear from real customers.

Warning sign: They can’t show you photos or give any references.

What to do: Ask for a portfolio and contact a few recent clients. A quality contractor should be proud to showcase their work.

5. 🕐 Overpromising on Speed

Why it matters: Cutting corners to finish quickly can lead to poor craftsmanship.

Warning sign: They say they can start right away and finish faster than other bids — without explaining how.

What to do: Look for realistic timelines. Projects rushed often result in future repairs or delays.

6. 🧱 Using Subpar Materials

Why it matters: Cheap or generic products might save money now, but they usually cost more down the road.

Warning sign: They won’t tell you which materials will be used or substitute items without asking.

What to do: Include specific brands and material grades in your contract. Approve all substitutions in writing.

7. 🚫 Skipping Required Permits

Why it matters: Projects that don’t meet local building codes can lead to fines or be torn out later.

Warning sign: They say permits aren’t needed or ask you to get them.

What to do: Make sure your contractor pulls the correct permits and inspections are completed. It's your responsibility as a homeowner.

8. 📞 Poor Communication From the Start

Why it matters: Lack of updates can leave you in the dark about delays, issues, or changes.

Warning sign: They’re hard to reach, avoid questions, or don’t follow up when promised.

What to do: Set communication expectations early. If they’re unreliable before starting, it won’t improve later.

9. 🧑‍🔧 Surprise Crew You Didn’t Hire

Why it matters: Subcontractors are common, but you should know who’s working on your home.

Warning sign: A team you didn’t meet shows up without introduction or explanation.

What to do: Ask who’s handling each part of the job and confirm their qualifications and insurance.

10. 🤑 A Price That’s Too Good to Be Real

Why it matters: A low bid often comes at the expense of quality or leads to hidden upcharges later.

Warning sign: Their price is way lower than others and they’re vague about what’s included.

What to do: Review line-item estimates from at least 3 contractors. Extremely low bids may mean they’ll cut corners or demand more money mid-project.