Avoid Home Improvement Scam Artist
Home improvement scams are most
frequently put into operation through door-to-door contact with homeowners.
Legitimate, home repair contractors reach potential customers through
advertising or phone solicitation.
Be wary of any salesperson that comes
to the door, and puts pressure on you to pay up front, or take the deal on
painting or paving right now. These are common homeowner scams and
tactics.
Do not pay upfront money to a contractor. Various state laws
prohibit contractors from this kind of business transaction. A contractor must
provide a service in order to receive consideration (payment).
Coming to
your home to give an estimate or even entering into a contract with a homeowner,
is not providing a service.
Once work has started and/or materials have
been received, that is when a contractor has provided a service that constitutes
a payment from the homeowner. And that payment should not exceed the percentage
of the contract price that the work performed and/or materials received account
for.
A contractor should establish a schedule of values for every
project that list the value of each activity of the project, and the homeowners
payment is made for the percent complete for each activity on a weekly,
bi-weekly or monthly bases, depending of the particular project. If a contactor
is asking for upfront money, this is an indication of:
a. Inadequately
trained management
b. Bad company business ethics
c. Lack of company
working capital
d. History of low quality workmanship that has resulted in
homeowner non-payment
e. A money scam that the homeowner will not be able to
recover.
Resist being pressured into signing a contract with a contractor
on their first visit. This is a tactic used by some contractors to keep
homeowners from comparing them to another contractor and researching their
history.
A quality contractor will be willing to make as many visits as
necessary to assist a homeowner in their decision. Your home is the single
largest investment you will ever make and a quality contractor will want you to
be satisfied with the improvements they will be performing.
Con artists
frequently zero in on low income people and seniors. They think these people are
especially susceptible to high pressure tactics. These con artists are
persuasive about unneeded or overpriced home improvement scams.
If a
contract is signed, the homeowner may land in more trouble with a collaborating
financial institution for refusing to pay for slipshod or unfinished
work.
Law enforcement agencies and consumer groups are well aware of
organized American Gypsies or Travelers. These are most likely the door-to-door
salespeople for home repair scams that homeowners encounter.
These
Travelers are organized, have new trucks and equipment with in or out-of-state
license plates, and, if asked, provide in or out-of-state phone numbers and
addresses.
Some of these groups have burglarized the homes of distracted
owners, or have offered to drive an owner to the bank so the owner can remove
money from an account.
So how do you select a contractor without being
scammed?
Your first resource for a recommendation should be family,
friends and neighbors who have had similar work done for them. A local flooring
distributor or home improvement warehouse can also help you locate reputable
contractors.
During the first meeting, it is a good idea to ask the
contractor for other references you can contact. If they do not have any
references, it would be a good idea to find a different
contractor.
Another good place to locate a reputable home improvement or
flooring contractor would be the manufacturers website or a distribution center.
Manufacturers usually have strict rules for the contractors they recommend.
Plus, contractors listed on the manufacturers website or recommended
through a distribution center, will usually take more care in their business
dealings because they are subject to lose more than just a customer, they could
lose their backing from the manufacturer if they do not fly straight.
The
relationship you have with your contractor is an important one. You will want
one who is qualified, capable and trustworthy. Here is a summary of
suggestions:
1. Just ask. Word-of-mouth is the best advertising. Ask
friends, neighbors and relatives. If there is a home you like with improvements
similar to what you want in your neighborhood, ask the owners who did the work.
Your local distributor will also have suggestions. Follow up on the leads they
give you.
2. Take a look. Ask the flooring installer or contractor for
before and after photos of their jobs. Ask for addresses of projects they have
done in your area.
3. Get references. Before signing a contract, get the
names of 3 or 4 of the contractors customers. Call and get their input. Also ask
the contractor about awards or endorsements they may have received.
4.
Check with the Better Business Bureau. If you have any concerns, call your local
BBB. They will be able to tell you if any consumer complaints are on record.
About the Author
Shane Hester has been helping website owners increase
online profits through exclusive webdesign and marketing services at
WebFirstCreations. See his companies latest creation: FloorsToGo Flooring Store,
at http://www.flooring-nc.com or contact him directly at
http://www.webfirstcreations.com.