Not every contractor has your best interests at heart. Learning to spot warning signs early can save you from costly mistakes, legal headaches, and endless frustration. Here are the red flags every homeowner should know.

1. No License or Insurance

This is the biggest red flag of all. A legitimate contractor will have:

  • A valid state contractor's license
  • General liability insurance
  • Workers' compensation insurance

If a contractor hesitates to show you these documents or claims they're "not necessary," walk away immediately.

Warning: Hiring an unlicensed contractor in Florida can result in fines for both the contractor AND the homeowner. Plus, your homeowner's insurance may not cover damages from unlicensed work.

2. Demands Cash or Large Upfront Payment

Legitimate contractors understand that trust is earned. Be wary if a contractor:

  • Demands full payment before starting work
  • Only accepts cash payments
  • Won't provide receipts or invoices
  • Pressures you to pay in unusual ways (gift cards, wire transfers)

A reasonable payment structure is 10-30% deposit, progress payments, and final payment upon completion.

3. Unusually Low Bid

If one bid is dramatically lower than others, ask yourself why. Low bids often mean:

  • Cutting corners on materials or labor
  • Planning to add charges later
  • Inexperience in estimating jobs
  • Potential to abandon the job partway through

4. High-Pressure Sales Tactics

A pushy contractor is a red flag. Watch out for:

  • "This price is only good today"
  • "I just happen to have leftover materials from another job"
  • Discouraging you from getting other bids
  • Knocking on your door unsolicited after a storm

Legitimate contractors are busy and don't need to pressure you. Take your time to make the right decision.

5. No Written Contract

Everything should be in writing. If a contractor resists providing a detailed written contract, that's a major red flag. Your contract should include:

  • Detailed scope of work
  • Materials to be used
  • Start and completion dates
  • Payment schedule
  • Warranty information
  • Process for changes and disputes

6. No References or Bad Reviews

A contractor with a track record should be able to provide references. Red flags include:

  • Refusing to provide references
  • Only providing references from "out of state"
  • Multiple bad reviews mentioning the same issues
  • No online presence whatsoever

7. No Physical Address

Legitimate contractors have a physical business presence. Be cautious of:

  • Only a cell phone number, no office line
  • P.O. box as the only address
  • Unmarked vehicles
  • No business cards or company materials

8. Wants to Skip Permits

Many projects require permits. If a contractor suggests skipping this step to "save money" or "save time," that's a major red flag. Unpermitted work can:

  • Violate building codes
  • Void your insurance
  • Cause problems when selling your home
  • Result in fines

Protect Yourself

The best way to avoid contractor problems is to do your homework before hiring. On Real Time Repairs, every contractor is verified for licensing and insurance, and you can read reviews from other homeowners before you hire.