Home Improvement Scams

How to Spot a Home Improvement Scam

There are plenty of home improvement scams and it's very easy to fall for these scams and be out thousands. Home owners looking to update/improve their homes need to make sure they don’t get taken by those who claim to be remodeling contractors. 

How do you spot a scammer?*

1. Pay up-front. Home owners should see red flags when a contractor requests that a home owner pay for a project in its entirety before even starting work. Down payments for materials and initial labor are standard practice. But then phased payments are often made as the work is completed.

2. Door-to-door solicitations. So-called contractors may knock on a home owner’s door and talk about work they noticed needs to be done around the house. This is a common scam

3. Be wary of limited-time deals. Don’t let a contractor make you feel pressured to rush in order to receive a special discount. Reputable contractors offer savings but they won’t push a short deadline 

4. Get recommendations but verify license. Be sure to verify credentials – licensing and available insurance coverage. Don’t just go on recommendations from friends and family. Look for examples of the quality of their prior work too.

5. Check reviews. Before hiring a contractor, check his or her work history with your state consumer protection agency (go to usa.gov/directory/stateconsumer for a list) and the Better Business Bureau. Search the Web using the company or individual’s name and such words as “reviews” and “complaints.”

6. Get everything in writing. Don’t rely on spoken promises. Demand a written contract, and get all warranties in writing, too.

* These do not include all possible scams. Beware and do research on your contractor before you deliver any funds.

Source: NAR.com and consumerreports.com