Home Improvement Scams: How to Protect Your Property

While improvement projects can be exciting, they are also a hunting ground for unscrupulous contractors and con artists, eager to exploit trusting homeowners. If you think these con artists will help you improve your living space and boost the value of your home, think again.

Home improvement scams can leave you with financial losses, shoddy work, or even an uninhabitable house, depending on the type of scam you fall victim to. So if you’re planning to do any kind of home renovations in the future, it’s important to understand how these scams operate and learn ways to protect yourself.

The Anatomy of a Home Improvement Scam

Home improvement scams are much more common than most people realize and they come in various guises, but they often share common threads. Let’s go through some of the most widespread fraudulent tactics.

The “Free” Inspection

This is a classic and old-school scam that’s been around for decades. It often begins with a door-to-door contractor claiming to have noticed something wrong with your roof, siding, or driveway. 

They then offer a free inspection to assess the “problem” with your home. However, as soon as they’re inside, they make up some nonexistent issues, often exaggerating minor wear and tear into significant damage that requires urgent and expensive repairs. And of course, they’re more than willing to sell you those repairs.

Disaster Chasers

In natural disasters like hurricanes or tornadoes, people’s homes are damaged or even destroyed, and unfortunately, this is a great opportunity for scammers. They descend on areas where there has been a lot of damage and find people whose homes need repairing or rebuilding, promising quick and cheap work. 

They prey on vulnerable homeowners desperate to restore their homes, but of course, don’t do much work. Instead, they take large deposits and disappear, leaving behind shoddy work, and bringing further misfortune to people who are trying to pick themselves up after a catastrophe.

The Leftover Materials Scam:

Scammers have also been known to introduce themselves as contractors who have just finished working on a project. They will claim to have leftover materials from another job and offer to do some home improvement work at a considerable discount to use up the “leftover materials.”

However, these materials are usually low-quality, and once again, the unsuspecting victim is left paying for work that might not even have been needed and isn’t up to standards or up to code.

Incomplete Work

Some home improvement scammers will leave you with shoddy work and provide substandard workmanship, all while cutting corners on materials and labor, others take a different approach.

They will ask for a large upfront payment and start doing the projects you signed off on, and do a good job, making you believe you’re getting your money’s worth. However, they won’t stick around for long and will disappear with your money while leaving the project half-finished.

Red Flags to Watch For

While home improvement scams are everywhere and can be easy to fall for, if you learn how to recognize the warning signs in time, you could potentially save thousands of dollars and a massive headache:

• Door-to-door solicitation. While not all door-to-door contractors are scammers, you should be suspicious of any unsolicited offers. Reputable companies get their work from referrals and advertising, not walking around a neighborhood looking for issues with houses.
• Pressure tactics. Scammers are always looking to get their victim’s money as soon as possible, which is why you should never be rushed into a decision. Don’t fall for their pressure tactics and remember that reputable contractors will always give you time to compare estimates and consider your options.
• No written contract. These scammers don’t want to leave a paper trail so they don’t offer you a contract, or they give you a vague contract with missing essential details. Every reputable project requires a detailed written contract outlining scope, materials, costs, timelines, and warranties.

How to Protect Yourself

Knowledge is your best defense against any type of scam. If you think you might become the target of a home improvement scam, here’s how you can keep yourself on guard:

• Get multiple estimates. If you’ve decided to get any work done in your home, get at least three detailed written estimates from different contractors so you can be sure you’re getting a fair price.
• Check references and licensing. Scammers will always claim to be licensed contractors, but won’t provide any proof of this. Always verify references, check online reviews, and ensure the contractor is licensed and insured.
• Ask for recommendations. If you need some home improvement work done, don’t wait for the contractors to come to you. Instead, ask your friends and neighbors to recommend someone whose work they’ve been satisfied with in the past.
• Detailed contracts. Never allow anyone to start work on your home without getting a comprehensive contract that you fully understand. If you need any clarification, you can have a legal professional review it. 

Final Thoughts

Falling prey to a scam is not a sign of weakness, scammers are manipulative and often target vulnerable homeowners. If you’ve been scammed, reach out for help to Payback and we’ll take on your case and do everything we can to get your money back. But the best way to make sure you don’t get scammed is to educate yourself. 

Stay informed and vigilant, and take preventive measures, and you will be able to enjoy a successful and stress-free home improvement experience.