Protect Yourself From Contractor Scams
If you’re hiring a contractor to make improvements to your home, be alert! Home improvement scams are more common than you may think and can cost you a lot. Read on for 8 ways to spot a home improvement scam.
1. The contractor insists on being paid upfront.
Be wary of any contractor demanding that you pay most of the fee upfront. This contractor is likely a scammer trying to cover their bases in case of shoddy work or a no-show.
2. The contractor refuses to supply references.
Never hire a contractor without speaking to someone who’s used their services. If a contractor is in the middle of another job, ask if you can check out their work yourself. If a contractor refuses to furnish previous clients’ names and contact information, move on to other options.
3. There’s negative information about them on the Better Business Bureau (BBB) site.
Before hiring any small business you’ve never used before, check them out on the BBB website. You’ll be able to read reviews and ratings and see if there are complaints against the company.
4. The contractor demands payment in cash.
Cash leaves no trail and makes it easy for scammers to walk away without doing much–or any–work.
5. The contractor will work for an extremely low price.
Ask questions if the bid is much lower than the going price. There’s a good chance you’re dealing with someone who will cut all corners. If you only get evasive answers, look elsewhere.
6. They show up at your door… uninvited.
Don’t fall for every contractor knocking on your door and claiming to have done recent work in your neighborhood. Your unwanted visitor is likely a scammer who will do sloppy work, leave the job half-finished or disappear with your money. If the contractor does seem legit, look them up on the BBB site and ask for references.
7. The contractor refuses to put anything in writing.
Never hire anyone to do work on your home without a written contract. Include as many details as possible in the contract, like payment terms, a final date for the work’s start and completion, warranty information, and a clear job description.
8. They try to avoid permits.
A contractor who tries to convince you there’s no need to pull permits wants to avoid the authorities. You’re likely dealing with an unlicensed worker or one who will cut corners.
Now that you have learned about the 8 ways to spot a home improvement scam, you can stay protected. Make sure to warn your family, friends, and neighbors.
