The hot Southern California real estate market of the last five years has caused a large increase in property values. Many of us have taken advantage of the escalation in equity to remodel and upgrade our homes. As gratifying and desirable as the realization of an updated house can be, to work with a contractor and satisfactorily complete a job can be a daunting task.

I have seen homeowners have problems even when they have worked with licensed and reputable contractors. However, there are steps you can take to evaluate contractors, avoid common pitfalls, and increase the probability of a smooth remodel or upgrade. Avoid misunderstandings and trouble by using these 10 tips to evaluate a contractor before you hire one:

1. Hire a contractor that is licensed by the state of California.

2. Ask for a license number and check it by calling the California Contractors State License Board at (800) 321-2752.

3. Get at least three references and contact each one to review the work performed.

4. Obtain at least three bids before selecting a contractor.

5. Ask for a written contract and do not agree to or sing anything until you understand completely the contract terms.

6. Pay for the work gradually. Do not pay more than 10% in advance.

7. Pay only completed work and never pay ahead of completed work.

8. Do not make the final payment until you are completely satisfied with the job.

9. Never pay in cash.

10. Keep a file of all of the documents and records created as a result of the job.

Homeowners must be informed and make good choices before hiring a contractor. Please use these tips to your benefit. If you require further information, contact the California Contractors State License Board. Call them (800) 321-2752 or visit their web site at www.cslb.ca.gov.