A recent survey shows that over half of American homeowners (52%) are gearing up for a renovation project this year1. If you're one of them, you're probably eager to get started—and with a median renovation budget of around $15,000, it's important to make the most of your investment1.

One of the biggest factors in achieving the results you envision is finding the right contractor. With the right partner, your project can be a smooth, stress-free experience. However, many homeowners fall into common traps during the hiring process that can impact both their budget and the final outcome.

In this guide, we'll walk you through seven key mistakes to avoid when hiring a contractor, helping you set your project up for success from the very beginning.

1. SKIPPING THE RESEARCH PHASE

One of the biggest missteps homeowners make is rushing into hiring a contractor without doing their homework. Taking the time to research and meet with multiple contractors is essential to the success of your renovation.

By skipping this crucial step, you miss the chance to compare different approaches, pricing, and expertise. This can lead to overpaying or selecting someone whose skills or vision don't match your needs.

Additionally, if you're unfamiliar with the process, it becomes harder to ask the right questions. Without proper research, you risk hiring underqualified contractors or ending up with disappointing results.

What To Do Instead:

  • Educate Yourself — Take some time to read articles or watch videos that explain best practices for your specific project.
  • Interview Multiple Contractors — Meet with at least three contractors who specialize in the work you're planning to ensure you get a variety of perspectives.
  • Ask Specific Questions — Make sure to ask each contractor about the processes and materials they plan to use, so you can make informed comparisons.
  • Seek Recommendations — Ask trusted friends, neighbors, or real estate professionals for referrals. We’d be happy to share a list of contractors we trust!

2. CHOOSING BASED SOLELY ON PRICE

Once you’ve reviewed proposals and interviewed contractors, it can be tempting to go with the lowest bid. But focusing solely on price might not get you the results you’re hoping for.

While it's natural to want to save money, choosing a contractor based only on cost could mean sacrificing quality. Extremely low bids might indicate shortcuts, lower-grade materials, or unexpected costs down the road. According to the National Association of the Remodeling Industry, it’s important to compare bids carefully—look at the overall value, including experience, timeline, and the scope of work2. Are they licensed and insured? How long have they been in business? Do they back their work with warranties?

What To Do Instead:

  • Focus on Value — In addition to price, consider experience, reputation, and the quality of work offered.
  • Request a Breakdown — Ask for a detailed breakdown of each bid, so you know exactly what’s included.
  • Be Mindful of Low Bids — If one bid is much lower than others, it could be too good to be true.
  • Invest in Quality — A skilled contractor may come with a higher price, but the long-term value will pay off by avoiding future issues and ensuring the job is done right.

 Check insurance and credentials - Lois Marris of Ponte Vedra Club Realty

3. NEGLECTING TO CONFIRM CREDENTIALS & INSURANCE

When you’ve built a good connection with a contractor, it’s easy to trust them, but skipping the step of verifying credentials and insurance can lead to serious issues later on2.

Hiring an unlicensed or untrained contractor can result in safety hazards, code violations, and subpar work. If they lack proper insurance, you could be held financially responsible for repairs, legal issues, or even medical expenses if there’s an accident on-site3.

Skipping reference checks can also be a costly mistake. It’s your chance to confirm that their past work matches your expectations and that their promises are backed by real results.

What To Do Instead:

  • Verify Licensing and Insurance — Make sure your contractor is licensed and fully insured. You can visit the Florida Department of Business and Professional Regulation’s website at www.myfloridalicense.com to search for licenses.
  • Check Reviews — Look up their reputation with the Better Business Bureau and other relevant trade associations.
  • Call References — Don’t hesitate to ask for references and request photos of completed projects to see their work firsthand.

4. PROCEEDING WITHOUT A WRITTEN AGREEMENT

Relying on a handshake deal may feel friendly and straightforward, but it’s a quick way to encounter misunderstandings and potential legal issues. Verbal agreements are difficult to enforce and can lead to confusion about the project’s scope, timeline, or costs—especially when multiple parties are involved in decision-making5.

Always insist on having a signed contract in place before any work begins3. While paperwork can seem tedious, it’s crucial to review the agreement carefully, ask questions, and ensure all terms are clear. This protects you from surprises and sets expectations for the entire project.

Additionally, make sure to document any change orders in writing. Change orders prevent miscommunications, especially when the contractor is working with more than one person authorizing adjustments. Clear documentation ensures that everyone is on the same page regarding any changes to the scope, materials, or cost.

What To Do Instead:

  • Insist on a Written Contract — Outline every aspect of the project, including the scope of work, materials, timelines, payment schedules, warranties, and a clear process for handling change orders.
  • Understand and Agree — Take the time to understand every term in the contract before signing.
  • Document Everything — Keep thorough records, including payment receipts and all change orders. This is particularly important when two or more people are involved in authorizing changes. After the project is complete, request a lien waiver or receipt marked “Paid in Full” for your records6.

Pay Contractors As Project Proceeds - Lois Marris of Ponte Vedra Club Realty

5. PAYING TOO MUCH UPFRONT

Paying a large sum upfront may feel like you're securing your project, but it can put you at risk if the contractor doesn't finish the job or disappears. According to Angi.com, deposits typically range from 10% to 33% of the total cost7. The rest should be tied to progress milestones laid out in your contract.

Construction experts recommend not paying more than the value of the work completed3. This way, you maintain leverage to ensure the project meets your standards before the final payment is made.

What To Do Instead:

  • Be Cautious — Avoid contractors asking for large upfront payments or cash-only deals.
  • Set a Payment Schedule — Tie payments to clear project milestones and stick to that schedule.
  • Pay Upon Completion — Hold off on full payment until you’re satisfied with the completed project, and ensure all required inspections have passed.

6. FAILING TO GET NECESSARY PERMITS

Skipping permits might seem like a shortcut, but it can lead to expensive consequences. Without the proper permits, you could face fines, have to undo work, or even face legal trouble8. Not to mention, unpermitted work could compromise your home’s safety and potentially lower its resale value. Homeowners insurance may also exclude coverage for unpermitted renovations, leaving you vulnerable if something goes wrong8.

Should you decide to sell your home in the future, the Florida Association of Realtors property disclosure form will ask if any work was done on the property and whether it was properly permitted. If you didn’t pull permits, that could complicate the sale.

Also, don’t forget to check with your homeowners association (HOA), if applicable. Some HOAs require approval before making changes to your home or yard, and ignoring these rules could lead to fines or even a lien on your home9.

What To Do Instead:

  • Discuss Permits — Make sure your contractor knows permits are a priority, and check HOA rules if needed.
  • Include Permits in the Contract — Ensure that securing permits and approvals is part of your contractor’s responsibility in the contract.
  • Verify Inspections — Confirm that all required inspections are passed, and be sure to close out the permits with final inspections.
  • Keep Records — Save copies of permits, inspection reports, and HOA approvals. These documents will be important if you ever sell your home.

7. IGNORING RED FLAGS AFTER THE PROJECT HAS STARTED

Even if everything seems perfect at the start, issues can arise mid-project. Whether it's poor communication, missed deadlines, or subpar workmanship, red flags should never be ignored. If problems come up and the contractor is unwilling to address them, the situation could worsen quickly.

It’s important to take immediate action. Ignoring issues or feeling “trapped” because you’ve already invested time or money won’t help. Address concerns head-on to protect your investment and ensure a successful outcome10.

What To Do Instead:

  • Review Your Contract — Know your rights and obligations, so you’re prepared if things go wrong.
  • Document Issues — Keep detailed records of any problems, including dates, descriptions, photos, and communications with your contractor.
  • Communicate Professionally — Set up a meeting to calmly and professionally discuss your concerns, making sure to clearly outline your expectations.
  • Request a Resolution Plan — Work with the contractor to create a plan to fix the issues, set a timeline, and get it in writing to ensure accountability.
  • Seek Advice — If the contractor isn’t responsive, consider seeking legal advice or reaching out to your local licensing board or consumer protection agency for help.

BOTTOM LINE

Hiring the right contractor is key to the success of your renovation project. By avoiding these common mistakes, you’ll set yourself up for a smooth, successful experience that enhances your home’s value and function.

Taking the time to research, communicate, and plan properly will pay off in the end. After all, your home is likely one of your biggest investments—so it’s worth the extra effort to ensure it’s in good hands.

If you’re looking for a trusted contractor or want to understand how your renovations could impact your home’s value, reach out for a free consultation. We’re here to help!

 

The above references an opinion and is for informational purposes only.  It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

Sources:

1.       USA Today -
https://www.usatoday.com/money/homefront/moving/home-renovation-statistics/

2.       National Association of the Remodeling Industry -
https://remodelingdoneright.nari.org/Homeowner-Resources/Questions-to-ask/How-to-select-a-remodeler

3.       The Washington Post -
https://www.washingtonpost.com/home/2024/07/08/how-to-find-good-honest-contractor/

4.       MarketWatch -
https://www.marketwatch.com/guides/insurance-services/home-insurance-during-renovations/

5.       LegalZoom -
https://www.legalzoom.com/articles/oral-contracts-do-they-carry-any-weight

6.       Better Business Bureau -
https://www.bbb.org/all/home-improvement/your-home-improvement-contract

7.       Angi -
https://www.angi.com/articles/how-much-should-i-pay-general-contractor-prior-starting-job.htm

8.       Bob Vila -
https://www.bobvila.com/articles/remodel-without-permit/

9.       Bankrate -
https://www.bankrate.com/real-estate/hoa-homeowners-association-rules/

10.    Angi -
https://www.angi.com/articles/how-complain-contractors-effectively.htm