Though most contractors and home service providers are professionals who take pride in their work, do a wonderful job with great craftsmanship and in a timely manner there are some out there who are not qualified and even worse just out there to scam you out of you hard earned money.
In this article I am going to describe some of the general warning signs and red flags to look out for when you hire a contractor for your next home project. Now while all these are signs and red flags for a contractor scam not all situations mean that a contractor is a scam artist. Doing a diligent background check on your contractor can save you a lot of money.
Door to Door Contractor
One of the easiest ways a contractor scam artist gets access to your home is through door to door marketing. These contractors will knock on your door and offer you a free inspection of your home or trouble area. Then once inside or receives approval from you then they always find a problem that will cost you large sums of money.
Always be weary of door to door contractors in a lot of areas they are called storm chasers and usually show up after a storm. This is often for a roofing repair or siding but can include almost any kind of home improvement problem or project, including radon testing.
These scam contractors scare the home owner that they have a major problem and they need to get the work done right away. The fear is how they often get away with the scam. People are afraid for their safety or home then are willing to part with thousands of dollars.
Your best defense is to always get another contractor out to your home and give you a quote on the work and inspection to see if there is an actual problem. Then always check your contractor for license and references.
Low, Low Prices
Another way a contractor scammer will get access to your house is by offering you a deal that is good to be true. Imagine you have done the right things, called a few contractors and got multiple quotes and a contractor stops by and seems very professional. He offers you a great deal on your home improvement project, much lower than anyone else. You jump on the deal you are getting a steal, right ?
Unfortunately, most of the times you are in for a ride that does not end well for you. Most contractors calculate their jobs at a certain percentage. You will be able to find variances in pricing between the several contractors, the ability for one contractor to come so low below the others does not add up.
There are several things that could be happening here. The first is the contractor does not know how to price his jobs. This means he is inexperienced or not qualified at all. The contractor though will be adding the surcharges to you later on and they could be a lot more then you even imagined. The second reason is they are straight up scam artist. These people bid on your job fully knowing that they will never complete the job. This contractor scam usually has a the contractor ask you for a large percentage up front , the contractor then show up once or twice and tears things up and waits until the check clears. Once the check clears you never hear back from them. Its common for them to leave all their equipment behind and you will usually find out later that it is all rentals.
Be very very wary when you get a low ball offer, this is sure a sign of a unskilled contractor or a straight up scam.
Payment up front please
The payment up front contractor scam happens as you can imagine. The contractor asks for a large partial or full payment up front and then disappears with your money.
This one is a fairly easy one to avoid. Never pay a large sum up front for any work done no matter what. A good contractor home improvement company will always only ask of no more than 20 percent up front or nothing at all. If a contractor insists that you pay up front then walk away. Please, there are many contractors out there that are qualified who will do the job with those terms. You do not need to put your money or your home at risk.
No Contract
Always get your project quote put into a contract. Be sure that you understand the contract and what it means and what it covers. If you do not understand what it means make sure you ask.
I have seen a lot of people get scammed from contractors who just give them quote and have nothing in writing. If its not in a contractor then its not legally binding. Contractors will use this to their advantage by adding more and more expenses into the project. Also,if something is done wrong or damaged then who is responsible? Your contractor should be and it should state it the contract. A reputable contracting company will have all the proper insurance to cover them in case of an accident.
You need to protect yourself and your home, so please always get your project quote put in a contract and make sure you understand it. Make sure the contractor puts their guarantee in it an all other available information.
No Business Office
If your contractor does not have a business office then you should walk away. All business should have a place to do business out of. If their mailing address is a po box , walk away. You need to make sure you contractor is verified and licensed to do business in your town or state.
Without a location how will you ever find them if their is a problem. Always verify their address to make sure they are really located their.
Final Thoughts
These are some of the scams you will find out there that scam contractors pull. You have to be very careful with who you do business with. Always go with a company that is reputable, licensed, insured, and has plenty of referrals. Do a little home work and you can save yourself a lot of trouble. Because picking the wrong contractor can cost you lots of money.
Find a Local Top Rated Contractor
If you are looking for a qualified contractor please be sure to follow our links below. These companies offer you a great service in which they match local rated contractors where they have checked their references, licensing,insurance and backgrounds. They have already done some of the most difficult parts when finding a contractor. All you have to do is fill out a form and they will contact 4 qualified contractors to contact you about your home improvement project. Always be sure to follow the basic best practices when communicating with a contractor.
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Calfinder.com get bids from qualifying contractors.
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Service Magic The industry leader in home service contractors
Find thousands of unbiased ratings on services for home improvements, car repairs, and more. Try Angie’s List. Not free but deserves mentioning for their unbiased reviews of contractors.
Five Star Services
Calfinder.com
Find a contractor for your next Additions or Remodeling projects.
Service Magic
Find thousands of unbiased ratings on services for home improvements, car repairs, and more. Try Angie’s List.
Find a good estimate on what your project will cost with this easy tool.