Zach Hendrix - CTO, Entrepreneur & Co-Founder at GreenPal | GreenPal
The threat of contractor scams persists, with homeowners often left to deal with the consequences. Unlike television shows such as "Catch a Contractor," there is no crew ready to step in and save the day in real life. Homeowners, therefore, must rely on their judgment and vigilance to avoid falling prey to fraudulent contractors.
Several warning signs can indicate a potential scam. The Better Business Bureau highlights that requesting money upfront is a common tactic used by untrustworthy contractors. Typically, a down payment should be around 10% of the project's total cost, though it could be higher for smaller projects, like a landscape design costing $1,000. Beyond this, payments should adhere strictly to an agreed-upon schedule.
Another tactic is the use of scare tactics. Contractors who try to secure business by alarming homeowners about imminent disasters, like a roof about to cave in, should be avoided. Professionals will offer an honest opinion without resorting to fearmongering.
Contractors who claim to have leftover materials from a neighbor's job and offer a discounted rate for immediate work should also raise red flags. Legitimate professionals will not over-purchase materials or attempt to unload them this way.
Verbal agreements are another pitfall. Regardless of how convincing a contractor sounds, all agreements should be documented in writing. Written contracts outline the work scope and costs, offering protection if something goes wrong.
Paying in cash for a supposed discount often implies tax evasion and leaves no paper trail, making any future recourse difficult. Transactions should always be transparent and documented.
In the age of online reviews, homeowners are encouraged to exercise caution. Even reputable platforms like Reliableremodeler.com and Angieslist.com are not immune to fake reviews. Complementing online research with thorough vetting of contractors can prevent disappointing outcomes.
Finally, common sense and intuition remain invaluable. If a deal appears too lucrative or a contractor is unusually aggressive, it's wise to trust one's instincts. Recognizing these warning signs can help protect against scams and ensure a more secure home improvement experience.