How to Avoid Contractor Scams
When working on fixer uppers homes, you will
most likely need to use at least a contractor. However, there
are many contractor scams in the real estate market. You should
learn how to avoid contractor scams and to recognize a
contractor scam. How to avoid contractor scams depend on
what you are doing to the fixer uppers homes. However there are
basics of how to avoid contractor scams that all real estate
professionals should do. Below are tips of how to avoid
Check out the contractor to avoid a
The easiest way of how to avoid contractor
scams is to check out the contractor before hiring him or her.
Below are some points to consider when checking out the
contractor to avoid contractor scams.
Find contractors through referrals
will reduce the risk of contractor scams
Be wary of any contractor who calls you or
comes to your home uninvited. It is better to:
get names of contractors from friends who are
satisfied with repairs done to their home,
ask home improvement supply companies for names of
call your local NARI for a list of contractors.
Check if there have been complaints
against that contractor
Call The Better Business Bureau
or the Attorney General's Office and ask if any complaints
have been filed against the contractor.
Using established contractors avoids
Before hiring a contractor, you must ask
questions such as:
how long has the company been in business?
Where is their office?
How many employees do they have?
Who will supervise the work?
Hiring contractors with good references
avoids contractor scams
Before hiring a contractor, you should ask
for several references, then call each reference!
To avoid contractor scam, go for
licensed, bonded and insured
Most contractor scams are by contractors who
are not licensed, bonded or insured. You should ask to see
the license, and call the bonding or insurance
Guarantee and Warranty in writing avoid
Make sure the contractor gives a guarantee
or warranty, and that it is IN WRITING. If the contractor won't
put his promises in writing, look for another contractor that
will. When nothing is in writing, a contractor scam is easy and
it will be hard for you to prove that the contractor scammed
you even in the court of law.