The summer of 2022 has turned into a whopper of a setting for home repair scams. Whether we’re talking flooding in Kentucky or fires in California, there are now plenty of opportunities for the bad guys to take advantage of unsuspecting victims. Let’s look at how you can spot and avoid these types of scams.
Some popular home repair scams
The Fix-It Quick Solution
If you’ve been thrown out of your home by a disaster, one of the first things to think about is how to make repairs. It can be frustrating dealing with reputable contractors because, well, they’re busy. So when a company shows up and promises to make the repairs right away, it can seem like a miracle. The question is, is the fix-it quick solution legit?
The Huge Discount Dilemma
A guy shows up at the door, says he’s a contractor who’s doing work in the area, and can provide a huge discount if you hire him on the spot. Tempting? Absolutely. Especially when the estimates from other contractors can seem outrageous. How do you know if this is your lucky day or worst nightmare?
The Phony Loan
According to the Kentucky Attorney General, homeowners should also be on the lookout for ‘lending companies’ that offer ‘guaranteed’ loans in you pay the fees in advance. “Work with local lending institutions, when possible, and make sure the mortgage loan officer is licensed by the Kentucky Department of Financial Institutions. If a loan doesn’t include a mortgage, the loan officer generally can’t charge a fee in advance.”
What to watch for
Tip #1 – do your research
There are some great resources to research contractors you are considering. BBB.org provides ratings and lists complaints against the contractor. Also, get the contractor’s license number and insurance information. Then, check your state’s contractor license database. The easiest way to find this database is to do an Internet search for ‘how do I find a contractor license in my state?’ (Replace my state with the name of your state.)
Tip #2 – hold onto your wallet
The law prevents contractors from charging their full fee prior to completing a job. If you’re not sure about your state, check with your state’s contractor licensing department. If a contractor wants to be paid by money order, cryptocurrency, cash, or some other untraceable method, walk away.
Tip #3 – Get it in writing
If someone wants to start work right away without a written estimate and contract, beware. The larger the job, the more imperative it is that you have the estimate and scope of work in writing so there are no misunderstandings later on.
Another potential problem for disaster victims is finding a temporary residence. Check out my scam tip, Three tips to avoid real estate rental scams. Click here to view more Friday Morning Post entries, or you can follow me on Twitter.
