After 25 years of remodeling homes across Sacramento, Roseville, and Folsom, I have walked into more than a few projects that another contractor started and abandoned. The pattern is almost always the same — the warning signs were there before the homeowner signed, but they were easy to miss when you are excited to finally start your kitchen or home remodel. I am Eugene Chernioglo, founder of America’s Advantage Remodeling. Here are the ten red flags I tell my own friends and family to watch for, so you can spot a bad contractor before you hand over a deposit.
1. They ask for a large deposit upfront
A legitimate contractor has credit with suppliers and does not need most of your money to start. In California, the law caps the down payment on a home improvement contract at 10% of the total or $1,000, whichever is less. If someone asks for 30%, 50%, or the full amount before any work begins, that is the single biggest warning sign there is. Payments after the deposit should be tied to real milestones — not the calendar.
2. They only take cash
Insisting on cash eliminates your paper trail and usually means the contractor is avoiding taxes, working without proper insurance, or hiding something. Always pay by check or credit card so you have documentation and a way to dispute a charge if the work goes wrong. A contractor who refuses anything but cash is telling you how they operate.
3. They can’t (or won’t) show a license and insurance
In California, any home improvement project over $500 in combined labor and materials requires a licensed contractor. A good one provides their CSLB license number without hesitation — you can verify it instantly at the Contractors State License Board website. They should also carry general liability insurance and workers’ compensation. If a worker is injured on your property and the contractor has no workers’ comp, you can be held liable. For reference, our license is CSLB #1036517.
4. The bid is dramatically lower than everyone else’s
Getting multiple bids is smart. But if one quote comes in 25 to 30 percent below the others, something is wrong. They have either missed part of the scope, plan to use substandard materials, or intend to hit you with change orders once your kitchen is demolished and you have no choice but to pay. The lowest bid is rarely the cheapest project once it is finished.
5. There’s no written contract — or it’s vague
A handshake is not a contract. A proper agreement spells out the full scope of work, the materials and finishes, the payment schedule tied to milestones, the start and completion dates, and everything that is NOT included. If a contractor resists putting details in writing or hands you a one-paragraph estimate with no specifics, walk away. The contract protects both of you — vagueness only protects them.
6. They pressure you to sign today
“This price is only good today” and “I have another customer interested” are manipulation tactics, not business realities. A legitimate contractor wants you to feel confident and gives you time to decide. High-pressure sales tactics are a sign of desperation or dishonesty — a remodel is a major investment, and the right contractor respects that.
7. They want you to pull the permits
The contractor should pull the permits, because they are the one responsible for the work meeting code. If they ask you to pull them, it usually means they are unlicensed or trying to dodge accountability if an inspection fails. Worse is the contractor who tells you permits are a waste of money and you do not need them — unpermitted work can stall a future home sale and force you to tear out finished work.
8. They’re available to start tomorrow
Good contractors are booked weeks or months out. “I can start tomorrow” often means they are desperate for work — and you should ask yourself why a quality contractor would have no jobs lined up. It can also be a sign of a scam where they take your deposit and disappear. A reasonable wait for a reputable team is normal and worth it.
9. Communication is already bad
If a contractor is hard to reach, dodges your questions, or misses meetings before you have hired them, it will only get worse once they have your money. Poor communication during the sales stage reliably predicts a project where you are left in the dark, unsure what phase the work is in or when anyone will show up. How they treat you now is how they will treat you for the whole remodel.
10. A pattern of bad reviews — or none at all
One negative review can be a fluke. A pattern of the same complaints — abandoned projects, poor communication, demanding more money — is a clear warning. Pay attention to how the contractor responds to criticism, too. And be cautious of a contractor with no online footprint at all, or one who has changed company names several times, which can be a way to bury a bad reputation. We have built our reputation on 225-plus reviews at a 4.9-star average over 25 years in Sacramento.
If something feels off, it probably is. You are about to trust this person in your home with a significant sum of money — do not ignore warning signs because you are eager to start. The good contractors are out there: licensed, insured, transparent about pricing, and patient with your questions. They are worth waiting for.
Planning a kitchen or home remodel in the Sacramento area? We will give you a detailed, itemized estimate with no surprises and answer every question before you commit. Reach out for a free in-home consultation.
Work with a licensed, insured Sacramento remodeler you can trust. Call (916) 507-0469 or request your free in-home consultation.
FAQ SECTION (direct-answer-first for AEO)
Q: What are red flags when hiring a contractor?
A: The biggest red flags are demanding a large upfront deposit, accepting only cash, refusing to show a license or insurance, and pressuring you to sign immediately. In California, the legal deposit cap is 10% or $1,000, whichever is less, so any larger demand is a serious warning sign. A bid that is dramatically lower than competitors and a vague or missing written contract are also major concerns.
Q: How much deposit should a contractor ask for?
A: In California, a contractor can legally request no more than 10% of the total project cost or $1,000, whichever is less, as a down payment. Anything beyond that is a violation of state law and a strong red flag. Legitimate contractors have supplier credit and don’t need most of your money before starting work, so payments after the deposit should be tied to completed milestones.
Q: How do I check if a contractor is licensed in California?
A: Verify any California contractor’s license for free at the Contractors State License Board (CSLB) website by searching their name or license number. A licensed contractor provides their number without hesitation. California requires a licensed contractor for any home improvement project exceeding $500 in combined labor and materials.
Q: Is it a red flag if a contractor only accepts cash?
A: Yes, cash-only payment is a significant red flag. It eliminates your paper trail and usually signals the contractor is avoiding taxes, operating without insurance, or hiding something. Always pay by check or credit card so you have documentation and the ability to dispute a charge if work goes wrong.
Q: Should the contractor or the homeowner pull permits?
A: The contractor should pull the permits because they are responsible for the work meeting building code. If a contractor asks you to pull the permits, it often means they are unlicensed or trying to avoid accountability for failed inspections. A contractor who claims you don’t need permits at all is a serious warning sign.
Q: What is a common red flag?
A: One of the most common red flags is a bid that comes in far below the others. A quote 25 to 30 percent under competing bids usually means the contractor missed part of the scope, plans to use substandard materials, or intends to add change orders once work begins and you can’t easily switch. The lowest bid often becomes the most expensive project once it’s finished, so compare bids on scope and materials, not just the bottom-line number.
Q: What should be included in a contractor’s written contract?
A: A proper contract should include the full scope of work, specific materials and finishes, a payment schedule tied to milestones, start and completion dates, and a clear list of what is not included. A vague one-paragraph estimate or a refusal to put details in writing is a red flag. The contract protects both you and the contractor, so detail is in your favor.
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