The Season of Giving... But Don't Get Scammed

A Tennessee Homebuyer’s Guide to Hiring Contractors and Planning Repairs

Last Updated: October 8, 2026



Quick Answers

How can I check a contractor’s license in Tennessee? Search the state’s license verification database and confirm that the license fits the work being proposed.

Do all home repairs require the same license? No. Requirements vary by project cost, type of work, and location. Check with your local building codes office about licenses and permits.

Should I pay for the entire project upfront? No. Get payment terms in writing, tie payments to completed work, and keep records of what you pay.

What if I’m buying a home that needs repairs? Understand the property’s condition and the sale terms, then get qualified advice and realistic estimates before committing to a renovation budget.

The holidays can be a tempting time to tackle home repairs before guests arrive or start planning improvements for the new year. A promising quote may sound even better when you’ve just purchased a home that needs attention. But rushing into a contractor agreement can put your budget and your property at risk.

This matters to buyers across the Tri-Cities, including those considering an older home, an investment property, or a house offered at auction. The purchase price is only part of the decision. Repairs, permits, carrying costs, and unexpected work can change what you can afford.

Start With the Property, Not the Sales Pitch

Before hiring anyone, make a list of the work the property needs. Separate urgent safety or systems issues from cosmetic improvements. A qualified home inspector or appropriate trade professional can help you understand concerns involving the roof, structure, electrical system, plumbing, or heating and cooling.

If you’re considering an auction property, read the specific auction terms and find out what access is available for inspections before bidding. Properties may be offered as-is, and the auction schedule may leave less time to gather estimates. Build room into your budget for conditions you cannot fully assess in advance.

For a traditional purchase, discuss inspection rights, repair negotiations, and deadlines with your real estate agent before making an offer. A renovation plan is more useful when it reflects the property you can actually buy and the work you can reasonably complete.

Check Credentials Before You Sign

Ask each contractor for their full business name, contact information, applicable license number, references, and current insurance documentation. Then verify the information yourself.

Tennessee generally requires a contractor’s license before bidding or negotiating work totaling $25,000 or more. Rules for smaller projects and specialized electrical, plumbing, or HVAC work can differ. The Tennessee Board for Licensing Contractors provides license verification and consumer resources; your local building codes office can explain permit requirements for the property.

A license check is one step, not a substitute for reviewing the proposal, speaking with recent customers, and comparing bids.

Watch for These Contractor Warning Signs

Pause and ask more questions if someone:

• Pressures you to sign immediately for a “today only” price
• Refuses to provide a detailed written estimate or contract
• Will not provide applicable license or insurance information
• Requests full payment before work begins or insists on cash
• Gives you a bid that leaves out materials, labor, or the scope of work
• Suggests skipping required permits or asks you to pull permits for their work
• Cannot provide recent, relevant references
• Pushes financing without giving you time to review the lender’s terms

One warning sign does not prove fraud. It does mean you should slow down and verify the facts before signing or paying.

Put the Scope, Schedule, and Payments in Writing

Obtain more than one bid for substantial work. Compare what each contractor will do, the materials proposed, allowances for items you’ll select later, and how changes will be priced. The lowest number may exclude work that another bid includes.

Your written agreement should identify the contractor and property, describe the work, set out an estimated schedule, explain permits and inspections, and state when payments are due. It should also address change orders and any warranty. Keep copies of the contract, invoices, payment records, and project photos.

Tennessee’s consumer guidance on contractor fraud recommends checking references and insurance, getting terms in writing, and avoiding payment in full before the work is complete.

Think About Resale Before a Major Renovation

If you expect to sell after the work is finished, ask which improvements fit the home and its local market. A beautiful renovation can still strain your finances if the total investment exceeds what comparable properties support.

Collins & Co. can help you understand nearby sales and consider how a property may appeal to buyers. We also help owners compare a traditional real estate listing with an auction when it’s time to sell. Your contractor, inspector, lender, and other qualified professionals should advise on the work itself and its costs.

A little due diligence is a useful gift to yourself this season. If you’re buying a home that needs work, or deciding whether to renovate before selling, contact Collins & Co. to talk through the real estate side of your decision.