Home Improvement Scams on the Rise
As summer continues, Center for Elder Law and Justice has noticed a spike of home improvement scams, or contractor scams. What do these scams look like, and how can you protect yourself and your equity?
What is a home improvement scam?
A home improvement scam is when a victim hires a contractor to do work on their home, but the work is either never done or done poorly. The victim not only loses money, but the full use of their home which may have been damaged or just never repaired in the first place.
Contractors may go door-to-door soliciting work, they may approach you after a particularly damaging storm, or you could find them through a legitimate contractor search. Either way, these unscrupulous conmen and -women never intend to carry out the jobs they were hired for.
How can I make sure I’m hiring a legitimate contractor?
To protect yourself from contractor scams, first you must do your research. Ask friends, family, and neighbors if they’ve worked with a reliable contractor. Look up the company on the Better Business Bureau and see if there have been any complaints. Find reviews on Google, Angie’s List, or Facebook. Check out their website or Facebook page—and are the pictures only stock images or pictures of prior work done? Compare different contractors, and don’t necessarily go for the cheapest. Ask your contractor for references of past jobs. Ask for their license number and look it up online. Check their insurance, most reputable contractors will be insured in case they accidentally damage your property. If you ask for this information and they hesitate or stall that is a red flag. Make sure you have a detailed contract written up before any money changes hands. Never pay in cash—credit card or check only. And keep records of everything.
A legitimate contract should be on paper (not the back of a receipt or on a napkin), easy to understand, and have clear parameters for the work and cost. It should have the contractor’s or company’s name on it, information about their license and insurance, detailed descriptions of the work to be done and the materials to purchase, and a rough estimate of how much the job will cost. Keep in mind that this is just an estimate—some extra costs are not uncommon. But if a contractor asks for more money before a project is completed, that may also be a red flag.
Watch out for red flags.
Be wary of contractors that insist you pay them in cash, pressure you to make a decision quickly, offer to drive you to the bank, or who finds more things to fix or adds hidden fees. Do they have the right tools and equipment for the job? If they habitually show up late or make excuses to not show up, don’t answer or return your calls, or ignore permits and building codes, you may have stumbled upon a bad contractor. Legitimate contractors can and do ask for money up front, but it is usually a fair percentage. Be cautious of any contractor who gives you a deal because they have extra equipment from a previous job—they may have overcharged that client or never finished the job. Finally, don’t be fooled by prices that are much lower than other quotes. If a deal is too good to be true, it usually is.
What if I’ve been scammed?
If you have been scammed by a contractor, first try to solve the issue with the contractor. They may be willing to work with you, especially if you tell them you intend to work with a lawyer. If that doesn’t work, contact Center for Elder Law and Justice. The more records you have, the better. To speak with a licensed attorney for legal advice, call the Legal Advice Helpline at 1-844-481-0973 from 9:00am-11:00am on weekdays. You can also leave a message for a call back if you call outside those hours. Our intake line is 716-853-3087.