Home Repair Scams: How to Hire a Contractor Safely
When a roof leaks or a storm leaves damage, it is natural to want it fixed fast. Unfortunately, some people take advantage of that. The Federal Trade Commission (FTC) has a clear list of warning signs and safer ways to hire help.
Red Flags to Watch For
- Someone knocks or calls out of the blue and offers repairs, roofing, windows or solar panels.
- A contractor approaches you right after a flood, windstorm or other disaster.
- You are pressured to decide quickly.
- You are asked to pay in cash, or you are offered financing that you did not ask for.
- A contractor pushes expensive temporary repairs, or suggests using your home as security for a loan.
The FTC warns that these deals can end with money paid and no repairs, poor work that causes more damage, or a financing agreement that puts your home at risk.
How to Hire Safely
- Ask family, friends or neighbors you trust for recommendations.
- Confirm the company is licensed and insured, and check its record with recent customers.
- Get three written estimates, and do not choose on the lowest price alone.
- Read the contract carefully before signing. Make sure every promise is in writing, and consider asking a trusted relative or an attorney to review it.
- Do not let work begin until the contract is signed, and keep a copy.
Paying Safely
Be wary of anyone who wants the full amount upfront. An older FTC alert describes a deposit of about one-third of the total as a common standard. Pay the rest only when the work meets your approval, and pay by check or credit card. Do not pay anyone who insists on cash, a payment app or a wire transfer.
If You Think You Were Scammed
It is not your fault, and you are not alone. Contact your bank or card company right away if you paid. Then report it to the FTC at ReportFraud.ftc.gov or 1-877-382-4357, and to your state attorney general’s consumer protection office. You can also call the National Elder Fraud Hotline at 1-833-372-8311. Our guide Paid a Scammer? What to Do Right Away has more steps.
Tell a friend or family member about what you learned. Sharing a warning is one of the best ways to stop these scams.
