How to Spot and Avoid Home Improvement Scams

A surge in home renovation activities has unfortunately also seen a spike in contractor scams. Recent research shows that approximately 10% of homeowners have fallen victim to these scams. If you're planning to remodel or renovate, it's crucial to be alert and avoid becoming another statistic.

The Rise in Contractor Scams

According to a study by JW Surety Bonds, of the 1,000 Americans surveyed, approximately 10% have been deceived by a contractor, with an average loss of $2,426. Interestingly, baby boomers appear most vulnerable, with 15% having been scammed, while 13% of millennials reported being duped.

Key Warning Signs of Scams

To help homeowners stay vigilant, the study highlighted five telltale signs of potential scams:

1. The contractor either leaves the job incomplete or provides substandard work that doesn't align with the agreed terms (63%).

2. Regular tardiness or missed appointments without a legitimate excuse (40%).

3. Unexpected additional charges or fees not discussed beforehand (26%).

4. The contractor avoids questions or is vague about providing updates on the progress (25%).

5. Absence of a detailed written contract, or one that doesn't clearly outline the specifics of the job or costs (13%).

Expert Advice to Safeguard Your Investments

Maddie Weirman, from JW Surety Bonds, suggests the following measures to steer clear of scams:

- Verify credentials: It's essential to ensure your contractor is both licensed and insured. Weirman emphasizes the importance of requesting proof of insurance.

- Insist on a written agreement: Always get a comprehensive contract in writing, making sure it includes the contractor’s details and the expected start and end dates of the project.

- Avoid full payments upfront: While it's standard to pay a deposit, Weirman advises homeowners to only complete the payment when they're fully satisfied with the work done.

By being informed and cautious, homeowners can ensure their home improvement projects proceed smoothly and are free from fraudulent activities.

John Paulus is a licensed Real Estate Broker in Georgia.