Hiring a Contractor After a Brokerage Referral: Vetting Steps and Questions to Ask

Stop guessing when a broker hands you a contractor referral — use this checklist first

Getting a contractor name from your real estate brokerage list should be a convenience, not a risk. Too often homeowners accept a brokerage list referral without confirming the firm’s credentials, insurance, pricing transparency or workmanship guarantees — then face delays, surprise bills or shoddy work. This guide cuts through the noise with a practical, step-by-step vetting checklist you can use the same day you get a referral.

Quick verdict: What to check first (read before you call)

• Licenses & local registration — Verify the contractor is licensed for your project and in your jurisdiction.
• Insurance — Request certificates for general liability and workers’ compensation.
• Written quote — Always get a detailed, written quote and timeline.
• Portfolio & references — Review recent, local project photos and speak to past clients.
• Warranty & guarantees — Confirm both workmanship and product warranties in writing.
• Contract terms & payment — Include milestones, lien releases and dispute resolution.

Why brokerage referrals matter — and why you still must vet

By late 2025 and into 2026, many brokerages expanded curated vendor programs to add value for buyers and sellers. Programs like partnership networks and referral platforms give homeowners access to vetted pros faster than cold searches. However, the presence of a name on a brokerage list is not a substitute for your due diligence.

Brokerages prioritize convenience and relationship-building; they don’t always verify every permit, update insurance records continuously, or guarantee pricing transparency. In 2026, new digital verification tools and AI-assisted vendor screens help — but they augment, not replace, the homeowner’s checklist. Treat broker referrals as a head start, not a final approval.

The comprehensive vetting checklist (step-by-step)

Use this sequence during your first call, your site visit, and before you sign. Each section includes the documents to request, what to verify, red flags, and sample questions you can copy.

1. Confirm licenses and local registration

Why it matters: A license ensures the contractor met minimum trade standards and is authorized to pull permits in many jurisdictions. Some states and municipalities also require business registration even for small remodeling jobs.

• Documents to request: license number, issuing state/city, & expiration date.
• How to verify: Check the issuing state contractor board or local county website.
• Red flags: expired license, different name on license vs. contract, inability to provide a number.

Sample question: "Can you give me your license number and the state/municipality where it’s active so I can confirm on the board site?"

2. Verify insurance (general liability & workers’ comp)

Why it matters: Without proper insurance, a homeowner may be liable for on-site injuries or property damage. Certificates of insurance (COIs) tell you coverage limits and effective dates.

• Documents to request: a current COI naming you (or your mortgage lender) as additional insured when required.
• How to verify: Call the insurer or check policy number and limits on the COI.
• Red flags: refusal to supply a COI, low coverage limits (e.g., under $1M for large projects), no workers’ comp for a crew-based job.

Sample question: "Can you email a current certificate of insurance that shows general liability and workers’ comp? Will you add my property as an additional insured for this project?"

3. Portfolio review: quality, recency, local relevance

Why it matters: Portfolios show workmanship, materials used, and project scale. Local photos matter because codes, materials and climate differ by region.

• Documents to request: high-resolution photos, before/after shots, and a short list of 3 recent local projects (last 12–24 months).
• How to evaluate: Match the portfolio style and materials to what you want. Ask about any issues on those jobs and how they were resolved.
• Red flags: generic stock photos, no local examples, inability to provide job addresses for references.

Sample question: "Can you show recent projects in my neighborhood or climate zone? Which brands and materials did you specify on those jobs?"

4. Written, itemized quote and timeline

Why it matters: Verbal promises lead to scope creep and surprise costs. A written quote with itemized line items, allowances, and exclusions protects you.

• What to require in the quote: start/end dates, daily work hours, payment schedule, line-item costs (labor, materials, permits), contingency allowances.
• How to compare: get at least two quotes from different referrals on the brokerage referrals to compare scope and pricing.
• Red flags: vague scopes like "install kitchen" with no materials listed, large upfront deposits (>30% for most residential jobs), or no firm timeline.

Sample question: "Please provide a detailed, written estimate that lists labor, materials, and allowances, and a projected start and completion date. What is your payment schedule?"

5. Warranty, guarantees & post-job support

Why it matters: Some contractors offer only manufacturer warranties for products and no workmanship warranty. You want both.

• What to request: a written warranty for workmanship (typically 1–5 years) and confirmation of product manufacturer warranties.
• How to verify: get warranty language in the contract and ask how warranty claims are handled (response time, follow-up, who pays shipping).
• Red flags: no written workmanship warranty, vague claim response procedures, or requirement that all warranty claims go through the broker rather than the contractor.

Sample question: "What labor warranty do you provide in writing? If there’s a problem six months after completion, what’s the process and timeline to fix it?"

6. References and live verification

Why it matters: Speaking to past clients confirms reliability, communication and whether the contractor hits schedule and budget targets.

• What to request: three recent client references with project descriptions and phone numbers or emails.
• How to structure calls: ask about punctuality, cleanup, changes to scope and how cost overruns were handled.
• Red flags: repeated comment sections about missed deadlines, poor communication, or unresolved punch-list items.

Sample questions for references: "Did the team keep to the schedule and budget? Were there change orders? Any unresolved issues after project closeout?"

7. Contracts, payment terms & protecting yourself

Why it matters: Contracts set expectations. You should avoid open-ended terms and get protections like lien waivers and payment milestones.

• Contract items you must have: scope of work, schedule, payment milestones tied to completed work, change-order process, termination clause, lien release language, dispute resolution method.
• Payment advice: Avoid large upfront cash payments. Use escrow services or schedule payments tied to inspection or milestones (e.g., 10% deposit, 40% after rough-in, 40% after completion, 10% retained until final walkthrough).
• Red flags: pressure to pay all or most upfront, refusal to sign a formal contract, or ambiguous change-order processes.

Sample question: "Will you put all items in a written contract and agree to lien waivers at each payment milestone? Can we include agreed milestones and holdback language?"

8. Permits, inspections & local code compliance

Why it matters: Permits protect your property value and ensure work meets local codes. Contractors who skip permits may save time but leave you liable for future issues.

• What to confirm: who pulls permits, a timeline for inspections, and responsibility to correct any code violations.
• How to verify: check permit records online or ask the contractor for permit numbers and scheduled inspection dates.
• Red flags: reluctance to obtain permits or ambiguous answers like "we usually don’t pull permits for this size job."

Sample question: "Will you obtain all required permits and provide permit numbers? How do you handle code violations found during inspection?"

Smart interview questions to ask during the estimate (use this script)

Use these concise questions during the first phone screen and again on-site. They probe reliability, scope clarity and communication style.

• "How long have you been operating under this business name? Have you ever had disciplinary action or license suspensions?"
• "Who will be on-site daily and are they employees or subs? If subs, can you provide their insurance info?"
• "What’s your average timeline for a job this size, and what factors would extend it?"
• "How do you handle change orders and unexpected costs? Can you show an example change-order form?"
• "Can you provide a detailed payment schedule and sample final invoice?"

Advanced strategies and 2026 trends to use for contractor vetting

2026 brings new tools and expectations for homeowners vetting broker referrals. Use these advanced tactics to gain extra assurance.

• Digital verification platforms: Many brokerages now integrate license and insurance checks into referral portals. Still request documents yourself and verify on state board sites.
• QR-enabled portfolios: Contractors increasingly share QR codes that link to verified project galleries and embedded customer reviews — scan onsite to confirm recent work. Learn more about on-site tech and field toolkits in our field guide.
• AI-assisted vetting: New services analyze complaint databases and social reviews to flag patterns. Use them as a red-flag tool, not a final verdict.
• Escrow and payment platforms: In 2025–2026, more homeowners used third-party escrow services that release funds on milestone verification, reducing fraud risk.
• Contractor scorecards: Create a simple 0–5 scorecard for license, insurance, references, portfolio, written quote and warranty to compare referrals objectively. Use templates and communication checklists (email templates and record-keeping prompts) to standardize your evaluation — a good starting point is a briefs-and-templates resource for consistent communications.

Anonymized case study: How a vetting checklist saved a renovation

Sarah, a homeowner in a mid-sized market, received a broker referral for a kitchen remodel. She requested the license number and COI and discovered the contractor’s license was registered under a different business name and their COI expired two months earlier. Sarah paused, asked for updated documents and received a detailed written quote from a substitute contractor on the same brokerage list. The new contractor provided current insurance, three local references and a 2-year workmanship warranty. The job completed on schedule with one minor punch-list item addressed within 72 hours under the warranty. The time Sarah spent vetting prevented potential liability and gave her leverage to compare bids on equal terms.

Red flags that should make you press pause

• Contractor won’t put terms in writing or insists on all-cash payments.
• Insurance certificates are missing, expired, or low coverage limits.
• No local project photos or references in the last 12–24 months.
• Unwillingness to pull permits or ambiguous answers about code compliance.
• High-pressure tactics to sign immediately or demands that the broker act as sole intermediary for warranty claims.

Your printable hiring checklist (copy this during your call)

1. Obtain license number & verify online
2. Request current COI (general liability & workers’ comp)
3. Ask for three recent local references and call them
4. Review portfolio photos for similar projects
5. Get a detailed, written, itemized quote and timeline
6. Secure written workmanship and product warranties
7. Confirm who pulls permits and how inspections are scheduled
8. Sign a contract with milestone payments, lien waivers and dispute resolution
9. Use escrow when possible and hold final 5–10% until final walkthrough
10. Document all communications by email and keep paper copies of permits and invoices

Final notes: balancing trust with verification in 2026

Brokerage referrals remain one of the fastest ways to find pre-screened contractors, especially as broker platforms improve verification features. But in 2026, with evolving digital tools and more sophisticated fraud tactics, your personal vetting remains essential. Use the checklist above to turn a convenient referral into a dependable hire.

When you invest 30–60 minutes up front to verify licenses, insurance, written quotes and warranties, you reduce the chances of cost overruns, delays and legal headaches. Treat the broker’s list as your shortlist and apply rigorous checks before signing.

Call to action

Ready to hire with confidence? Download our printable brokerage referral vetting checklist and sample contract addenda, or schedule a 15-minute consultation with a local home repair specialist to review a referral before you sign. Click below to get the checklist and a free vetting template you can use today.

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