5 Red Flags When Hiring a Tradesperson (and How to Avoid Them)

Protect Yourself Before You Hire

Most tradespeople are honest, hardworking professionals who take pride in their craft. But the industry's fragmented nature — with licensing requirements varying across states, counties, and even cities — creates openings for bad actors. A 2024 Leaf Home survey found that 41% of homeowners have been deceived by a service provider, and nearly half of all respondents have had at least one negative experience with a contractor.

Knowing the red flags can save you thousands of dollars and months of frustration. Here are the five biggest warning signs — and what to do instead.

Red Flag #1: They Won't Provide a Written Estimate

A verbal quote is worth the paper it's printed on — nothing. Any professional contractor should provide a detailed written estimate that breaks down:

• Scope of work (exactly what they will and won't do)
• Materials and quantities (with brands specified for big-ticket items)
• Labor costs
• Timeline with milestones
• Payment terms

If someone says "I'll figure it out as I go" or "don't worry, I'll give you a fair price," walk away. Two-thirds of homeowners say it's difficult to predict home repair costs — a detailed written estimate is how you eliminate that uncertainty.

What to do instead: Use the written estimate as a comparison tool. Get at least three and stack them side by side. The differences will tell you a lot about who's thorough and who's cutting corners.

Red Flag #2: They Demand Full Payment Upfront

This is the single most common contractor scam. A legitimate payment structure for larger jobs looks like this: 10-30% deposit to cover initial materials, progress payments tied to completed milestones, and final payment upon completion and your satisfaction.

Anyone demanding 50% or more upfront — or full payment before work begins — is either undercapitalized (a sign they may not finish) or planning to disappear with your money.

What to do instead: On Traeos, our milestone-based quote system protects both parties. You approve each phase before the next payment is due, so you're never paying for work that hasn't been completed.

Red Flag #3: No License or "It's Not Required"

Electrical, plumbing, and HVAC work require licensing in virtually every state. The specific requirements vary — some states have tiered systems (apprentice, journeyman, master), others require general contractor licenses above certain dollar thresholds — but the principle is universal: significant trade work requires a licensed professional.

If a contractor claims they don't need a license, verify independently through your state's licensing board. Many states have free online lookup tools. In California, the CSLB makes it easy to check any contractor's license status in seconds.

What to do instead: Ask for a license number before discussing anything else. If they hesitate, deflect, or claim exemption, move on.

Red Flag #4: They Pressure You to Skip Permits

"We don't need a permit for this" might sound like it'll save you money and time, but unpermitted work can have serious consequences:

• Insurance problems: Your homeowner's insurance may deny claims related to unpermitted work.
• Resale issues: Home inspectors will flag unpermitted work during a sale, potentially killing the deal or reducing your price.
• Safety risks: Permits exist so that inspectors can verify the work is up to code. Skipping that step means nobody checks whether the electrical work, plumbing, or structural modification is safe.
• Fines: Your city or county can fine you — the homeowner — for unpermitted work, even if the contractor told you it wasn't needed.

What to do instead: Ask upfront whether permits are required for your project. A legitimate contractor will pull the proper permits and welcome inspections — it's proof their work meets code.

Red Flag #5: No Online Presence or References

In 2026, a professional tradesperson with zero online presence is unusual. No website, no reviews, no social media, and they can't provide references from recent jobs? That's a sign they either don't have a track record or are trying to avoid one.

Surveys show that 91% of homeowners check online reviews before hiring, and 56% specifically use Google to research contractors. Professionals know this — the good ones actively build their online reputation.

What to do instead: Ask for at least three references from jobs completed in the last six months. Then actually call them. Ask about the quality of work, communication, timeliness, and whether the final cost matched the estimate.

How to Protect Yourself

The best defense is doing your homework before you hire. Platforms like Traeos verify backgrounds, credentials, and reviews so you can browse with confidence — every pro passes a Checkr background check and has reviews from verified completed jobs. But whether you use a platform or find a contractor independently, the rules are the same: verify the license, get it in writing, never pay everything upfront, and trust your instincts.