5 Signs To Be Aware of That Could Signal A Home Improvement Scam
Across the country, housing inventory remains an issue for people looking to move into a home that better fits their changing needs. One way of dealing with this issue is to have someone make improvements to their existing property to make it into the home they desire. But unfortunately, across the country scammers are seizing this opportunity to take money from unsuspecting homeowners.
Home improvement scams are widespread. In fact, a new study from JW Surety Bonds shows one in 10 owners has been scammed by a contractor. As a service to homeowners, I think it’s important to relay a recent article by Melissa Dittmann Tracey, a contributing editor for REALTOR® Magazine, in which she details the survey with Maddie Weirman, a spokesperson for JW Surety Bonds. Through the survey, there are certain “red flags” to look for when hiring someone for home improvement services. Tracey details the most common characteristics:
• The contractor failed to complete the job or did poor-quality work and did not meet the agreed-upon standards (63%).
• The contractor frequently arrived late or missed appointments without a valid reason (40%).
• They added extra charges or fees that had not previously been discussed (26%).
• They refused to answer questions or were evasive about progress updates (25%).
• They provided no written contract or a vague contract without job specifics or costs (13%).
So what are some steps that can be taken to avoid being scammed? Tracey and Weirman give the following suggestions:
Ensure the contractor is licensed and insured.
“Don’t be afraid to ask the contractor for proof of insurance,” Weirman says. By hiring contractors who are licensed and bonded, homeowners can have extra security; surety bonds provide financial security against contractor scams.
Get everything in writing and review the contract carefully. “Make sure that this contract includes the contractor’s name and information and when the project is projected to start and end,” Weirman says.
Never pay the full amount up front.
While a deposit is common, Weirman says homeowners should not pay the full, agreed-upon amount until the project is complete to their satisfaction.
Tracey notes that all age groups are susceptible to these bad actors. Baby boomers were the most likely to fall victim to contractor scams (15%), followed by millennials (13%), the survey shows.
No one wants to fall victim to a scam that could potentially cost thousands of dollars. While these bad actors target many people, another way to help guard against these dishonest people is to consult your REALTOR® for a recommended service provider. Utilizing the expertise of a REALTOR®, even after your housing transaction, is just one part of the services that REALTORS provide. REALTORS® help homeowners get the most out of their investment. That’s Who We R®.
Founded in 1912, Greater Chattanooga REALTORS® is the voice for real estate in Greater Chattanooga. A regional organization with more than 2,700 members, Greater Chattanooga REALTORS® serve Hamilton and Sequatchie counties in southeast Tennessee and Catoosa, Dade, and Walker counties in northwest Georgia. The Association is one of approximately 1,100 local associations/board of REALTORS® nationwide that comprise the National Association of REALTORS®. Greater Chattanooga REALTORS® owns and operates a Multiple Listing Service (MLS), which is one of approximately 600 MLSs in the country and services more than 3,000 MLS users. Local Association membership is comprised of REALTORS® servicing the Greater Chattanooga area and specializing in a variety of disciplines – appraisal, commercial, industrial, land, multi-family, property management and residential. Working alongside REALTORS® are our Affiliate members, who represents related industries in sympathy with the objectives of the Association. Our Affiliate members include mortgage lenders, home inspectors, title and closing services, pest inspection and control and insurance.