Six Home Renovation/Contractor Scams To Avoid
Scams to avoid when hiring contractors
Getting work done to your home at some point is likely inevitable. If you can’t do the work or repairs yourself, you will likely need to hire a professional contractor to complete jobs. From roofing, driveways, decks, remodeled kitchens, baths, finished basements or refinishing floors or painting the walls. There’s always something that will need the attention of a good contractor. But how do you know who to hire? (I have a great list of local, Cleveland area contractors and repair guys that I’ve obtained throughout the years) so feel free to contact me anytime. Even with recommendations from real estate agents, family or friends, it’s still a good idea to watch out for these home renovation scams. You never know if a previous contractor has sold his business or has someone filling in.
One Time Special/Sale – A contractor knocks on your door and says he’s got a one-time special for maybe chimney, roof work, etc. Although you may need the work done, make sure you see a price list. Have him show you what the prices are normally. Most people/contractors have specials through-out the year that you can see proof of and always get a contract in writing. Take your time and get other estimates from certified contractors.
I Might As Well – A contractor may be down the street doing work on someone’s home like painting a neighbor’s home or working on their driveway and he has extra materials. He offers you a deal and tells you that you can get a great price on this so you might as well. This often leads to him entering your home and getting you to have other things done in other rooms that you don’t necessarily need done but he talks you into it because since he’s there, you might as well. This can add up and end up not saving you at all. Again, get additional estimates.
Cash Before Work – This is definitely the worst home repair scam ever. If someone wants to be paid up front and they are giving a deep discount for paying for the work before its done, chances are it won’t get done at all. A good rule of thumb is to give a down payment but never more than one-third. Then pay periodically until the work is finished holding the final payment until the work is completed. This way you’re ensuring you’re satisfied and you’re not getting scammed.
Financing Offers – Many contractors have relationships with some shady financers so what they’ll do is get you to sign papers and you’ll have no recourse against the contractor. The contractor will get paid in full by the financer and then he’s gone. So now the financer possibly has a lien on your house, a mortgage on your home like a home equity loan that you’re not even aware of. Make sure everything is in writing and you know who the lender is. Most larger, reputable banks/lenders in Ohio will give you financing to do home repairs. Make sure it’s legit.
Fly-By-Night Contractor – If someone shows up at your door with an unmarked van/truck or they have an out of state license plate, they may be fishing around to get a down-payment to do work and you’ll never see them again. They may also be casing your home so make sure you never let them in. Most contractors in the Cleveland area are local and will have a local license plate/driver’s license. There’s nothing wrong with asking to see identification. After all, this person will be in your home, around your family and the person you’re hiring. Don’t feel funny about being blunt and asking questions.
Model Home Scam – A contractor comes into your home to do work and offers you a deep discount in order for you to get extra work done so he can show it to other people and take pictures. He tells you he wants to make it his “model home”. What he’s really trying to do is build up a lot of jobs and work to be done which adds up. Make sure you’re only getting the work done that you wanted and don’t fall prey to pressure and up-selling.
Most of these are very simple scams, but many smart people still fall for them. Make sure you write out the complete contract, check on the contractor/repair man online, check out with the attorney general to see of there are previous complaints and use your gut. If it feels wrong, it probably is.
Need a recommendation from home owners that have had good experiences? I have a great list of contractors and repair men that do everything in the home. I’d be happy to talk with you about your home improvement plans whether you’re selling your home or not. Contact me anytime, always happy to help!