If you suggest that your clients make updates before selling, then they will likely ask, “Do you have anyone you could recommend?”

Not having an answer isn’t great but giving them a bad contractor is even worse. There are many horror stories, and if you recommend someone bad, it can be a nightmare for both of you.

Licensed (and insured) contractors are a must

Anyone can claim to do the work, but not everyone is licensed. In some cases, they may even do a great job, but you and your clients are taking a big risk.

There are liability issues for working directly with unlicensed contractors. While the laws vary by state, agents who contract directly with contractors, pay contractors directly or even act as the overseer of these projects could get themselves into murky water. In some cases, you could risk losing your commission or even your license.

Licensed contractors should also carry insurance in case someone gets hurt on the job. Otherwise, your homeowner could end up responsible for those medical bills.

Fraud is on the rise

Contractor fraud is a growing problem. The Inspection Support Network’s Home Improvement Scams Trends Report 2022 noted that the Federal Trade Commission received 16,486 reports of fraud in 2022 as compared to closer to 7,000 in 2018. This boom was exacerbated by the pandemic.

Although the numbers have dropped since 2021, agents should be aware of these contractor scams. They can involve everything from misleading proposals and cash payments to material substitutions and false invoices. If you recommend a bad contractor, it can hurt your reputation and your referrals.

Traditional contractors can be problematic

In real estate, time and quality is of the essence. There has been a noticeable deficit in contractor availability nationwide, sometimes taking weeks to get someone out for an estimate. The truth is, you cannot afford to wait in real estate. On top of that, the overall experience with traditional contractors can be discouraging with fuzzy communication and timelines, leaving both you and your clients in the dark.

How to protect your clients and yourself

Rest assured, there are ways to help your homeowners secure quality tradespeople. Obviously, the first step you should take before recommending someone is to make sure they are licensed. This alone can help legally protect you, your clients and your business in the event that something goes sideways.

Next, do your research. While there are many contractor-review resources online, you should not solely rely on them. It is better to get referrals from other real estate professionals that have had firsthand experience with the contractor. Home improvement is never perfect, and you need someone that is committed to making things right if the project were to go awry.

If you already have a list of go-to contractors, you are still not in the clear. Revisit your list to check that it is still sound. Are they still licensed? Can they take on work right now? You could be recommending a bad apple without realizing it.

Even better, work with a contractor that specializes in pre-listing updates. Curbio is the agent’s go-to contractor that does smart pre-sale home improvements. From the initial estimate to the final walk-through, the project is managed for you, and homeowners do not pay until closing. With same-day estimates, real-time availability and a turnkey experience from start to finish, you can feel confident about your recommendation. So, the next time a client asks, keep Curbio in your back pocket as the leading pre-listing contractor you can trust.

To learn more about Curbio’s pre-listing home improvement solution and how it can help you grow your business, visit https://curbio.com/.

Olivia Mariani is the director of marketing at Curbio.

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