How to Hire a Contractor

tips-to-hire-a-contractorIf the honey-do list is getting a little long or there are projects around the house that need the attention of a professional, it’s probably time to call an expert. We’ve all heard horror stories of supposed contractors and handymen who have scammed their clients out of thousands of dollars or who were unlicensed or did poor quality work. You can protect yourself and your home by following some basic steps to hire a licensed, legitimate contractor.1

  1. Make a list. What projects would you like the contractor to handle? What projects can you do? Write down everything that needs to be done so you don’t forget anything while you’re on the phone with the contractor.
  2. Get recommendations. Talk to your family and friends to see if they can recommend a specialist. Sometimes the employees at the local hardware store can recommend someone they’ve worked with or heard good things about. Remember to keep the contact information of contractors you’ve worked with in the past so you can call them for future projects and recommend them to your friends and family. Contractors should be licensed, bonded and insured.
  3. Compare contractors. The Better Business Bureau is a good place to start to see if a contractor has had any complaints filed against them. Make sure they provide proof that they are licensed, and carry insurance. Many contractors provide references you can speak to about their work. You can also check online reviews of specific companies.
  4. Get estimates. It’s generally a good idea for the contractor to come out to the home in person in order to give a reasonable estimate, rather than just doing it over the phone. Estimates should include labor costs, material costs and the start and end dates. Sometimes major issues come up with any project so be prepared to spend more than the estimate, but an experienced contractor will be able to provide a very close, if not exact, estimate.
  5. Get everything in writing. A contract should be signed before any work begins.  The contract should clearly specify what work is going to be done and when. Make sure you understand exactly what is going to be completed and keep a copy of the contract.
  6. Pay the final bill after the work is finished. Do not pay the final bill until the project is completed to your satisfaction and any required building authorities have inspected the work (if applicable).

If you are willing to spend a little extra time to do your homework before hiring a contractor, you can potentially save yourself time and money by hiring a reliable, experienced professional.

If you need additional cash to fund home improvement projects, one option to consider is a reverse mortgage loan. A reverse mortgage allows senior homeowners to tap into a portion of the equity in their homes and use the equity as a supplemental form of retirement income. Homeowners must be at least 62 years old and have sufficient equity in their homes, as well as a few other key requirements. If you are interested in learning more about a reverse mortgage loan, call 800.976.6211.