Unfortunately, home improvement scams are a growing problem in this day and age. Even diligent and intelligent people can fall prey to an insidious home improvement scam.
The best way to protect against different types of home improvement scams is to know what to be on the lookout for when it comes to this type of activity. Proactive education is your best line of defense.
Telltale Signs of a Home Improvement Scam
The nature of home improvement scams do change and evolve. They take on different appearances as people become aware of an existing tactic. With that said, there are some fairly consistent signs to be on the lookout for when it comes to a home improvement scam.
Door to Door Solicitation
In nearly all cases, when someone knocks on your door and offers home improvement services, you are likely dealing with a less than reputable enterprise. There may be one limited exception when a pitch at your door may be legitimate. Those sometimes legitimately occur in the aftermath of a major storm when contractors are working with people in a neighborhood that has been seriously damaged by a weather event. Nonetheless, and as will be discussed in a moment, the aftermath of weather events is also a time when the fraudsters are out in force.
A reputable home improvement business doesn’t have the time nor the need to engage in blind pitches on a door to door basis. They may have lags between jobs. However, the don’t fill those down periods by seeking business door to door.
Discounts for Finding Customers
Another sign that you may be dealing with a home improvement scam is if a pitch is made to you that you will receive discounts for finding other customers for a so-called home improvement business.
Left Over Materials
If a so-called home improvement contractor reaches out to you and states the company has materials left over from a previous job and can give you a deal, that is a red flag. While it is possible a home improvement contractor has excess materials, blindly soliciting people for work with the enticement of cheap materials of this nature is not a legitimate approach to attracting business.
Pressure to Make an Immediate Decision
An indicator that you might be facing a home improvement scam exists when you encounter a person holding himself (or herself) out as a contractor and pressures you to make an immediate decision. A legitimate, reputable, reliable home improvement contractor doesn’t put this type of pressure on a prospective customer. In fact, a bona fide contractor will work with a homeowner over time to lay the groundwork for a home improvement project.
Only Accepts Cash, Pay Everything Up Front, Borrow Money from a Lender Contractor Knows
There are certain types of financial arrangements proposed by a so-called contractor that are major red flags. These include a contractor that accepts cash only as well as one that requires you to pay everything upfront. In addition, if a contractor pushed you to borrow money from a lender the contractor knows, he (or she) should be avoided.
Requires You to Obtain Building Permits
Another sign that a contractor is not legitimate is found when a contractor asks you to obtain required building permits. Obtaining building permits is a matter of routine for a legitimate, experienced contractor.
Indicates Your Job will be a Demonstration
An enticement sometimes used by a less than legitimate contractor is that your job will be a demonstration. Understanding what exactly is meant by a “demonstration” is an issue in and of itself. However, the underlying concept is that your project is going to be something special and will become a model for other people interested in home improvement.
Offers Lifetime Warranty or Long-term Guarantee
If you encounter a contractor that is offering some type of broad lifetime warranty or long-term guarantee, remember the old adage “if it’s too good to be true …” In this day and age, there can be some solid warranties and even guarantees regarding different types of materials utilized on a home improvement project. However, expansive warranties and guarantees on things like workmanship or the overall project simply are not realistic and perhaps even lawful.
Lack of a Public Business Phone Number
If a contractor doesn’t have a public business phone number, the enterprise may not be legitimate. In addition, virtually all businesses have a website, even if its just a very basic one. The lack of these items should also raise a red flag for you.
Jessica Kane writes for Advance Online, a leading provider of web-based OSHA. DOT. and HAZWOPER training.