Contractor fraud and scams are a big deal in the home improvement industry. According to the Federal Trade Commission, more than $4.1 billion was lost by the Americans in the past five years to fraud and scams. Those numbers are scary enough to be a nightmare for the homeowners. Home improvement can consist of projects that upgrade an existing home interior (such as electrical and plumbing), the exterior (masonry, concrete, siding, roofing), or other improvements to the property (i.e. garden work or garage maintenance/additions). A contractor may con a homeowner in several ways, from doing sloppy work that requires more repair work down the line to leaving a job not finished or making off with their pay and doing no work at all, or even rob your home. Here Read on for 8 types of common home improvement scams that you need to watch out for keeping yourself safe.
1.In door to door solicitation
A contractor may or may not have a license come to your front door with a smiling face. He may say he has finished working in the neighborhood but have some materials left (could be painting colors). He then offers you to hire him for the job for a substantial fee for the sake of both parties.
Don’t fall for that trick. It is far more seen that your uninvited visitor is a fraud who will do sloppy work, leave the job half-finished, or disappear with your money.
2.The contractor ask to be paid upfront
Most of the states have different laws regarding down payments but usually, it stands between 10% to 30%. So, you better be careful of any contractor who demands you pay more than a third of the total fee upfront. This is the sign of the scammers who are more likely to run away with the money.
3.Unwilling to sign any agreement papers
If any contractor refuses to sign any legal documents related to his work then there is a high percent chance of scamming. The contractor may not have a license or work permit or, charged for bad occurrence in previous work.
4.Refuge to supply any references
It is always recommended by the Federal Trade Commission (FTC) to the homeowners to ask past customers detailed questions about the contractor’s work before hiring. Inquire more about the contractors working ability, timing, and final price. If the contractor refuses to furnish names and contact information of previous clients, there will be a smell of suspicion. It will be better to look for another option.
5.The contractor demands payment in cash
The Federal Trade Commission (FTC) advises homeowners to pay contractors with a check or credit card so you can contest the charges if something goes wrong. Cash leaves no trail to catch the contractor for his dirty works and let the scammer walk away.
6.Offering to do the job for an insanely cheap price
Don’t get conned by the contractors who offer to complete the job at a cheaper price than the market price. There is a good chance that they will not finish the job to the end or may show an excuse to pay more in the middle of the job. As a result, that may cost you more than usual. Before hiring such a contractor. ask a lot of questions. If you don’t get satisfying answers then look elsewhere.
7.Try to avoid permits
Very often seen among the scammers that they don’t have any work permit or license to do the job. They try to convince the homeowners that there is no need to pull the license issue to do the job. Be careful to deal with these contractors.
8.Too much showoff but the result is negative
You will always find some contractors who can present themselves perfect for the job and vastly experienced too. Be careful, they could be an imposter. They might have false permits or false proof of experience. You can check them out on the Better Business Bureau (BBB) website. You can read reviews and ratings and see if there are any complaints filed about the contractors.
So, homeowners, you better prepare yourselves before hiring any contractor to avoid any home improvement scams. Remember those scammers have worked for years to perfect their scams. You stand no chance against them until you understand what they are doing.
