Home Improvement Scams

by Courtney Ronan


n the midst of natural disasters, homeowners have occasionally found themselves the unwitting victims of scam artists posing as home improvement specialists. First-time homeowners also have fallen victim to such trickery. We've all heard the stories of contractors who were consistently late, who didn't show up one day, who made serious mistakes, or who didn't finish the job. How do we locate reliable contractors? What red flags should homeowners be looking for when they interview prospective home-repair contractors?

Request for a hefty deposit up front.

When natural disasters strike, homeowners are vulnerable. Emotions are running high, and skilled swindlers will play into that. They may claim to have a particularly large amount of work on their plates at the moment. However, they "sympathize" with your plight and will temporarily put their other commitments on hold -- if you'll just put down a large deposit beforehand. Many of us are so distracted by the damage to our homes and the strong drive to "just fix it all" that we're temporarily blinded by that request and are quite willing to slap down large amounts of money before any contractor has even crossed the threshhold of our homes. It's worth repeating: Don't pay until you see the product.

Calling it a day long before it's time.

Contractors are strapped for time -- even the most dedicated contractors. But the best contractors are those that manage to balance their work-related demands and who are completely honest with their clients in the event that they need to reschedule. Some dishonest contractors, however, tell homeowners that they've done work that in reality, they haven't completed -- in order to obtain the next installment right away. Other contractors ask their clients for money to buy the necessary materials, and then proceed to use the money to back another project. Before the homeowner knows it, he's paid large sums of money for the completion of a project that, in reality, is only partially completed. The worst perpetrators are those who then fail to show up to complete the job. They stop answering clients' phone calls, and in the worst-case scenario, disappear altogether. Home improvement experts suggest that homeowners take note if contractors routinely skip days, show up late, or send only one employee out to the job site. Those are all warning signs that the contractor might be facing serious financial trouble for which you could end up paying if you're not careful.

The product switcheroo.

Some contractors sell homeowners one type of product and then install another inferior version. To prevent this from happening, make sure you get the products in writing up front. If a contractor experiences a memory lapse and can't seem to remember which brand of product he's going to use on your remodeling project, don't sign anything until he writes it down and you agree to it. If you sign a vague contract that fails to mention product brands and models, you're leaving yourself open to the installation of inferior materials. Some contractors claim it's not their policy to write that information down. In that case, find yourself another contractor. On many occasions, the materials contractors use is out of the homeowner's sight -- such as wiring or roofing materials. We're asked to trust the contractor, who possesses the knowledge that we don't have. Get it writing; that's your best defense.

What a deal!

The old adage applies here: If it sounds too good to be true, it is too good to be true. Be on your guard. This business is competitive, and incredibly low estimates are a warning sign that getting your business is probably the contractor's only priority. If the bid you receive is 50 percent less than the competition, you should question it. While you may receive a low bid, the contractor could then add materials that should have been included in your original bid. He could also begin marking up materials costs like a madman and take quality shortcuts whenever he can. The homeowner ends up with a homeremodeling project that cost him well above what was quoted in the bid. Worse yet, both the materials used and the workmanship are shoddy.

I didn't notice when we started, but ....

Most homeowners are at a disadvantage when it comes to home remodeling projects. We don't understand the nuts and bolts, the lingo, the job requirements. So we trust contractors who tell us that some unanticipated extra work came up on our projects for which we'll have to pay extra. Unless, of course, we want a substandard project, in which case our homes might collapse. Watch out for contractors who tell you the job just can't be done right unless they add A, B, and C, which will cost you X, Y, and Z. Such contractors are supplying their crew with busy work which ups your costs. Contractors worth their salt will alert you before the project begins of the potential problems they could encounter, and how much those could cost you above the original bid.

Sheer intimidation.

The worst scammers are those who use intimidation. They get homeowners to sign binding contracts, then raise their prices and scare their clients into thinking that they'll simply walk off the job unless they agree to their terms (read: more money). The elderly and first-time homeowners are particularly vulnerable to such tactics. Many homeowners are frightened by the contractor's threats of a lawsuit or sabotage and pay up because they don't want confrontation. The best advice here is to ask around for recommendations from friends and co-workers before you begin any home-improvement project.

A final tip:

Be adamant about receiving references from your prospective contractor, and always, always, get everything in writing. A contractor who values the opportunity to work with you (and who would like you to recommend him to your friends) will be happy to spend the time writing down every detail of the job. Once the deal is signed, keeping the lines of communication open with your contractor will help ensure that you have a positive home-remodeling experience.

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