In today’s economy, it is more important than ever to be aware of home improvement scams. Many homeowners are eager to improve their homes and make them more livable, but scammers take advantage of this by targeting innocent people with fraudulent schemes. By being aware of the most common scams, you can protect yourself from becoming a victim. Here are some tips to help you avoid getting scammed when remodeling your home.
How can I avoid scams when it comes to home improvement?
1. Beware of unsolicited phone calls offering home improvement schemes like resetting your refrigerator or asking for money. Scammers are constantly finding new ways to target homeowners by contacting them via telephone, mail, email, and even door-to-door salespeople. They may call you with bogus offers on your home, tell you about a bad contractor in the area who left others in debt, or claim they have leftover supplies from another job that they would give you dirt cheap. No matter how convincing their story is, accounts like these should be treated as nothing more than scams designed to bilk you out of your hard-earned money.
2. Be cautious if someone says that contractors are quitting or moving because of new regulations. Home improvement scammers often use this ploy to get homeowners to sign a contract with them on the spot before they have time to do any research. They may even show you what looks like an official document or email that appears to be from a government agency. Remember, if it seems too good to be true, it probably is – don’t let yourself be rushed into making a decision.
3. Get more than one estimate for your home improvement project. Many homeowners make the mistake of signing a contract with the first contractor who comes along, without getting any other quotes. This can be a costly mistake, as scam artists often charge much more than legitimate contractors. It’s important to get at least three estimates from different companies so you can compare prices.
4. Beware of contractors who pressure you to sign a contract immediately. If someone tries to coerce you into signing an agreement on the spot, it is more than likely a scam. Legitimate and reputable contractors will not pressure you to make such a big decision without first allowing time for research and comparison shopping.
5. Watch out for contractors who ask for money upfront or require full payment before work starts on your home improvement project. Under no circumstances should any contractor ever ask for money before they can begin their job – reputable businesses never require customers to pay in advance, as they know that jobs often encounter complications and end up taking longer than expected. For example, if your renovation was supposed to take two weeks but goes over for the third week, the contractor should not expect to be paid in full until the job is completed.
6. Check with your state or local government agency before hiring any contractor. Many states have licensing boards that regulate contractors, and some even have registries of bad contractors who have been caught scamming people in the past. You can also check with the Better Business Bureau to see if any complaints have been filed against a contractor you are considering hiring. You can also perform a background check if you want to do a deeper dive.
7. Always get a written contract before work begins on your home improvement project. This document should outline all the specifics of the job, including the cost, the materials that will be used, the start and finish dates, and what will happen if either party decides to cancel the contract.
8. Remember that all contractors are required to carry workers’ compensation, general liability, and auto insurance. Any contractor who tries to work without coverage is probably not someone you want working on your home improvement project like getting it repainted or buying a new couch.
9. Request at least two references from the company before hiring them for any job – whether it’s a small repair job or an entire renovation. Reputable businesses should have no problem providing you with this information, as they know that the more customers they have happy with their work, the more business they will receive in the future. However, if anyone gives you only one reference, be wary! It could very well be another scammer trying to lure you into doing business with them so they can steal your money later on.
10. Be wary of any contractor who says that they are certified in your state when you call but then can’t produce the documentation to show that certification. This is likely a lie – why would anyone want to pay for certification from another state when they could easily get one on their own?
11. A contractor should be open about how long he has been in business. Many scammers will try to portray themselves as experienced contractors who have been in the business for many years, but if you ask them for proof, they will likely be unable to provide it.
12. Get an estimate in writing and make sure both parties sign it before any work begins. This will protect you from any unexpected charges or changes that may occur during the course of the project.
13. If a contractor asks you to pay with a personal check, don’t do it! This is a huge red flag, as it means that the contractor can easily pocket your money and never do any work on your home. Instead, always pay by credit card or through a bank transfer so you have some form of protection if something goes wrong.
14. As a general rule, if a contractor says he will start work soon but can’t give you an exact date, you should be wary and consider this a red flag. A reputable contractor will know when they need to begin work on your home to finish in time without having to ask for extensions later on.
Conclusion
No one wants to get scammed when they’re trying to improve their home, so following these tips should help you avoid any potential problems. Remember to do your research before hiring anyone, and if something doesn’t seem quite right, trust your gut and don’t do business with that contractor. With a little caution, you should be able to have a smooth home improvement project without falling victim to a scammer!
