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Before You Hire a Contractor: 12 Red Flags & 8 Green Flags | Sherman R.E. Properties
Contractor Guide • Hiring Smart
Before You Hire a Contractor

🛠️ Before You Hire a Contractor: 12 Red Flags & 8 Green Flags Every Homeowner Should Know

Real-talk advice from Sherman R.E. Properties on how to avoid “never again” contractor experiences, protect your money, and recognize when you’ve actually found the right pro.

By Sherman R.E. Properties Published: May 28 Contractor Hiring Guide Red Flags & Green Flags
For Everyone Who’s Said “Never Again”

If you’ve ever hired a contractor and ended up thinking, “Never again…” — you’re not alone.

Maybe they stopped answering the phone halfway through the job. Maybe your “two-week project” turned into three months of dust, excuses, and strangers in your house. Maybe the price magically went up after they started. Or maybe the work just didn’t look like what you were promised.

  • 🚩
    Red flags to avoid before you ever hand over a deposit.
  • Green flags to look for so you know you’ve picked the right pro.
  • 💬
    All in the same tone we’d use talking to a friend or family member — no fluff.

At Sherman R.E. Properties, we walk into “contractor rescue” situations all the time — usually when a homeowner calls us to fix what another contractor messed up. After seeing enough of those, you start to notice patterns.

This guide gives you the real-talk version of how to spot a bad contractor from a mile away — and what it looks like when you’ve actually found a good one. No sugar-coating. No corporate fluff. Just the kind of advice we’d give a friend or family member before they signed anything.
Part One
12 Red Flags: When You Should Pause (or Run)
No Written Contract (or a Super Vague One)

If the “agreement” is just a handshake, a text message, or something scribbled on a notepad at a gas station, that’s an immediate problem.

How it shows up:

  • “We don’t really do paperwork like that.”
  • “It’s simple — demo, paint, flooring… we’ll figure it out as we go.”

Why it matters:

A vague or nonexistent contract = no clear scope, no timeline, no expectations, no accountability. This is how jobs drag on for months or balloon in cost with zero protection for you.

They Can’t Break Down Their Pricing (No Itemization)

A professional contractor should be able to explain what you’re paying for, why it costs what it costs, and how the price is structured. When the quote is one giant lump sum, that’s a huge warning sign.

How it shows up:

  • “It’s $18,000 total. That’s all you need to know.”
  • “We don’t itemize — that’s just our price.”
  • “Everything’s included… trust me.”

Why it matters:

If a contractor refuses to itemize or explain costs, it often means:

  • They don’t actually know the scope and will nickel-and-dime you later
  • They’re hiding material/labor markups
  • They plan to add “surprise” charges once the job starts

A clear breakdown protects you from games, guesswork, and budget creep.

Wants a Huge Cash Deposit Up Front

A normal deposit? Fine. A giant deposit before anyone lifts a hammer? Run.

How it shows up:

  • Asking for 50–70% upfront
  • “I need all the material money now.”

Why it matters:

Too much upfront kills incentive. At best, your job becomes low priority. At worst, they disappear — and so does your money.

Their Price Is Suspiciously Cheaper Than Everyone Else

A good deal is great… until it's too good.

How it shows up:

  • Their estimate is half of everyone else’s
  • “I can beat ANY price.”

Why it matters:

Cheap often means cutting corners:

  • cheap labor
  • cheap materials
  • missing steps
  • or they plan to charge you more later

Quality work has a market value. Good contractors know their worth.

Avoids Pulling Permits When They’re Clearly Needed

If the work requires a permit and they try to avoid it, that’s a major issue.

How it shows up:

  • “Permits just slow us down.”
  • “Let’s skip permits and save you money.”

Why it matters:

No permits can mean safety issues, failed home sale inspections, forced tear-outs, and fines. If they cut corners legally, they’ll cut corners everywhere else.

No Portfolio, No Photos, No References

A real contractor takes pride in their work.

How it shows up:

  • “I don’t keep photos, but trust me — we’re good.”
  • Can’t provide anyone to vouch for them.

Why it matters:

No photos = no proof. No references = no track record. You’re essentially hiring blind.

Bad Communication From the Beginning

If they can’t communicate well during the “getting to know you” phase, it does NOT improve later.

How it shows up:

  • Slow replies
  • One-word answers
  • Dodging questions

Why it matters:

Renovation lives and dies on communication. Poor communication = mistakes, delays, and frustration.

No Clear Timeline or Schedule

Every project has unknowns, but a contractor should still provide structure.

How it shows up:

  • “We’ll start next week and just… work until it’s done.”
  • “I have no idea how long this will take.”

Why it matters:

No timeline = no accountability. You could be living in construction chaos for months longer than necessary.

Everything Is Verbal — Nothing Is Documented

The minute you hear “We’ll just figure it out later,” be cautious.

How it shows up:

  • No written change orders
  • No material confirmations
  • No updates sent to you

Why it matters:

This is how budgets blow up and expectations get messy. Documentation protects both sides — and keeps the project organized.

Unprofessional Behavior (On or Offsite)

You can tell a LOT about a contractor by how they carry themselves.

How it shows up:

  • Constantly late
  • Disrespectful tone
  • Crew smoking on your property
  • Mess everywhere

Why it matters:

Professionalism isn’t about being fancy — it’s about respect, reliability, and care for your home.

No Warranty or a “Trust Me” Warranty

Quality contractors put their name on the line.

How it shows up:

  • “Once I’m done, that’s it.”
  • “If something fails later, that’s not on me.”

Why it matters:

A written warranty shows confidence in their work — and protects you long after the job is done.

High-Pressure Sales Tactics

A good contractor doesn’t need to bully you into a decision.

How it shows up:

  • “This deal is only good today.”
  • “If you don’t sign now, I’m booked up.”

Why it matters:

Pressure = desperation. Confidence = professionalism. You deserve time to compare, research, and make an informed choice.

Part Two
8 Green Flags: Signs You’ve Found the Right Contractor
Clear, Detailed Written Contract

The scope, materials, payment schedule, and timeline are all written out — not just talked about.

What it looks like:

  • Line items for major tasks (demo, framing, plumbing, finishes, etc.)
  • Clear language about what’s included vs. not included
  • Written process for change orders

This tells you they have a real process and intend to honor it.

Transparent, Itemized Pricing

They can walk you through the estimate and explain each major cost without getting defensive.

What it looks like:

  • Labor and materials separated where it makes sense
  • Allowances clearly labeled (tile, fixtures, flooring, etc.)
  • They’ll answer “Why does this cost what it costs?” in plain English
Reasonable Deposit + Milestone Payments

They don’t demand most of the money upfront. Instead, they tie payments to real progress.

What it looks like:

  • Modest deposit to secure your spot and order materials
  • Payments due after specific stages (demo, rough-in, drywall, finishes, etc.)
  • Final payment held until completion / punch list

This structure protects both of you and keeps everyone motivated to finish strong.

Comfortable With Permits, Inspections & Code

They don’t flinch when you mention permits or inspections — it’s just part of doing the job right.

What it looks like:

  • They know when permits are required for your city
  • They handle the permitting process or guide you through it
  • They talk confidently about building codes and safety
Real Portfolio, Real Photos, Real References

They can show you past work that looks like the project you’re asking for — not just random stock photos.

What it looks like:

  • Before-and-after photos of similar projects
  • Past clients you can actually call or text
  • Online reviews that mention communication, cleanliness, and follow-through
Consistent, Respectful Communication

From the first message, they treat you like a real person with a real home — not just a lead in a spreadsheet.

What it looks like:

  • They respond within a reasonable time frame
  • They answer questions directly (even the “basic” ones)
  • They explain next steps so you’re never guessing
Clean Jobsite & Professional Behavior

You can tell they care about your home as much as the finished photos.

What it looks like:

  • Floor protection, dust control, and daily cleanup
  • Respectful crew — no yelling, blasting music, or smoking in your space
  • They show up when they say they will (or communicate if that changes)
Written Warranty & Post-Project Support

They stand behind their work — and they’re not offended when you ask about it.

What it looks like:

  • Written workmanship warranty with clear timeframes
  • They explain how manufacturer warranties work for your materials
  • They tell you how to reach them if something comes up after the job
Final Word: The right contractor doesn’t just make your home look better — they make the entire process feel calmer, clearer, and more predictable. The red flags tell you when to walk away. The green flags tell you when you can finally exhale and say, “Okay, I found my people.”
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