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Home Improvement Scams - Beware of the Contractor Who Shows Up At Your Door
In addition to email, mail and phone, scammers now just show up at your door.
Scammers posing as home improvement contractors come door-to-door sale and
target seniors, those who live alone, and victims of weather-related disasters
are common targets.
Watch out for these signs of a home improvement scam:
- The person at your door notices that your roof (or another area on
your house that is hard to check) needs repair.
- Common lines used: "I can give you a great price because I have
leftover materials from another job" or "I just happen to be working in
the area...
- He says he just finished work on your neighbor's house and has just
enough materials to do repair work on yours. He might say he can give
you a better bargain if you let him do the work today since he has the
supplies now.
- The contractor is pressuring you to accept an offer.
- The contractor has a vehicle with out-of-state license plates.
- The contractor is overly aggressive and says the work needs to begin
immediately.
- The contractor insists on immediate payment, often in cash.
- The contractor offers no written contract. All contracts should
contain the three-day cooling off period, required by law.
- He can't or won't supply customer references. If he does - DO call
them!
- His business address and telephone number is a rented mail drop or
an answering service.
- In addition, avoid contractors who exhibit poor communication
skills, are impatient and do not listen to you, or situations in which
the contractor is not accessible.
- The company cannot be found in the telephone book, is not listed
with the local Better Business Bureau, or with a local trade
association, such as NARI.
- He can't (for ANY reason) show proof of insurance (a certificate of
insurance) when requested.
How to Find a Real Contractor
- Take your time. Don't let the contractor rush your decision.
- Do research. Know how much you can afford and what you want done.
- Check your
state's the Attorney General's Consumer Protection Division for
information about the contractor you are considering.
- Check with the Better Business Bureau for complaints about
contractors you are considering.
- Check with services like Angie's List and Yelp to see how others
rated their service.
- Consumers can search
www.RemodelToday.com to find a remodeler who is a member of NARI (The
National Association of the Remodeling Industry).
- Talk to your friends who used this contractor. How did they like his
work?
- Stick to local, well-established contractors. Don't assume that
having an advertisement or website makes the contractor reliable.
- Compare bids and services. Be skeptical if the bid is too low. A
contractor with a very low price may be inexperienced and unable to
finish the work for the amount bid.
- Get all bids in writing and save it by scanning it to your computer
or taking a picture of it with your cell phone. Does the bid
specifically list the improvements you discussed? How long will the
project take? A detailed, written proposal allows you to shop around.
- Is the contractor licensed, bonded and insured? Licensing
requirements vary from community to community, so check with your city
or county building department to determine the licensing requirements
for your area and if the contractor you are considering is properly
licensed, bonded and insured.
Before You Sign A Contract
Get a written contract. State laws often require that home improvement
contracts exceeding a certain dollar amount (like $150) to be in writing.
Before signing the contract, make certain it includes:
- The price of the job
- The payment schedule
- A detailed description of the work and materials (including colors,
brand names and patterns)
- The estimated start and completion dates
- The contractor's name and address
- A name and telephone number of the person to contact if problems
arise
- The contractor's signature
Important:
- Never pay for the entire project before the work begins.
- Do not pay more than 1/3 of the total cost as a down payment.
Remaining payments should be tied to completion of specified amounts of
work.
After You Sign the Contract
Is a permit needed for your home improvement? Many
localities require permits for building projects. Contact your local
building department to see if a permit is needed. A contractor should not
start work until the permit is issued.
Don't make the final payment to the contractor until you
know that all subcontractors and/or suppliers have been paid. Get written
proof of payment. Subcontractors and suppliers may file a mechanics lien
against your home if they haven't been paid.
Get a copy of the warranty.
If a contractor guarantees labor and/or materials, those warranties should
be in writing.
Keep all records related to your project. This includes
the contract, change orders, warranties, and correspondence. These records
are important, particularly if you have a problem with your project.
Even if precautions are taken, problems may arise. Take time to talk to
your contractor to resolve these issues. If problems continue, put your
complaints in writing and send them to the contractor. Be sure to keep a
copy of these complaints for your records.
Common Home Improvement Scams (as reported to the Better Business
Bureau)
- DRIVEWAY SEALANT SCAM: Poor contractors show up on
door steps claiming they have left over materials from a previous job
and can seal your driveway for a rock-bottom price. After paying for the
job upfront, the "contractor" may slather an ineffective substance --
such as crude motor oil -- on your driveway and be on to his next
victim.
- DRIVEWAY REPAIR SCAMS: Fake contractors go thropugh
a neighborhood offering very cheap prices to repair driveways. They want
to begin work on the spot and usually do not have a contract.
- GUTTER CLEANING / CHIMNEY SHAKERS: They usually
advertise in local newspapers, offering gutter cleaning at a cheap
price. Once the routine work is performed, they claim the chimney is in
dire need of structural repairs.
Sometimes, chimney shakers will
literally remove bricks and mortar from the chimney; hence, the term
"chimney shakers." These materials will then be shown to the homeowner
as evidence of the chimney's alleged state of decay. Another common
scare tactic used in connection with chimney scams is the threat of
carbon monoxide poisoning if the chimney is not repaired immediately.
But remember, not all scare tactics are deceitful. When a reputable
contractor calls a problem serious and explains his rationale in a clear
and logical way, your family's safety may depend on you acting promptly.
If you are unsure about a diagnosis, always get a second opinion from a
reputable contractor.
- HOT TAR ROOFING: Phony contractors send
mailings, telemarket, or go door-to-door in this scam, which usually
targets businesses. These contractors offer a price that sounds too good
to be true and want to do the job immediately. They use substandard
materials and perform shoddy workmanship. In many cases, businesses
don't realize they've been burned until after heavy rains cause the roof
to leak resulting in damage to the office's interior. When the company
calls the contractor for repairs, its phone number has been disconnected
and he is no where to be found.
And please let us know about any
suspicious calls or emails you receive. We look for patterns so that we
can alert the authorities and victims to new scams, before it is too late!
References:
Resources and Related Scams