How Do I Hire a Contractor?

We here at Scott Yancey Co would like to express our thanks to all those who follow our blog, asks questions, and of course, leaves insightful feedback. We love hearing from you! Recently a reader asked us how we choose people for our crew. We know that hiring on the perfect help can be often be very difficult. But below, find a few tips to remember before you hire a new contractor:

1. Research references and reviews –

As soon as you have shortlisted a contractor, inquire about references from previous clients. Check with these previous clients and determine their levels of satisfaction using the contractor. Take advantage of technology by using Google search for reviews about the contractor’s business and the contractor. Check with those you know in the area who might have worked with the contractor. Additionally, check with suppliers and those who have maybe worked with the contractor like a hardware store owner; make sure to get their opinions and feedback. Remember to get as much info as possible being as specific as possible when you are asking for feedback about the crew. Ideally, you should hire a contractor with a local address and remember to visit his office to verify. Finally, be cautious of contractors only using a PO Box address as it is they may be difficult to track down if required. It is also wise to check with the State Contractors Board before hiring someone new.

2. Confirm that the company is licensed and bonded –

It is important to hire a contractor who has his licenses displayed in his/her place of business. With this you can verify the licenses are not expired and confirm the contractor's area of training. Besides having licenses, the contractor’s business should also be bonded. In short, this means the contactor has set aside money, which is controlled by the state to pay for claims, should the need arise. This decreases the financial risk for you as the client. Remember, license requirements can vary state to state, so do your homework.

3. Review the contract, review the contract, review the contract! And make sure you understand it –

Regardless of how large or small the scope of your project is, a contract between you and the contractor is necessary. A contractor who fails to draw up a contract should not be hired. A contract is a way to protect yourself and your home in case a problem occurs during the project; do not ignore it. Carefully review the contract terms and conditions. Make an effort to understand the scope of the work and its exclusions. Insist on adding any other details like timelines that might be missing. The contract should also have a section outlining the payment schedule. And as a policy, never, ever make an upfront payment. Have you received your FREE copy of Scott Yancey's book on Real Estate tips?