Fake Home Service Contractor Scams and How to Spot Them

Renovating or repairing your house can be a scary and traumatic project, thanks to the need for strangers in your personal space. But what makes it worse is that these strangers sometimes don’t have your best interests at heart. Fake home service contractor scams are a big problem, and spotting them can be difficult. Worse still, some contractor rules vary from state to state, making warning signs harder to pin down.

These contractor scams could fill several articles on their own, but we’re going to give you some overall tips on spotting and protecting yourself from them.

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Home Service Contractor Scams – Red Flags to Watch Out For

Fake home service contractors are constantly finding ways to part you from your hard-earned cash. They contact homeowners in the wake of natural disasters, and disappear after you’ve paid 50% of the upfront cost. Or they do quick, shoddy work, and everything falls apart once they’re long gone.

There are lots of ways they can try to scam you, so let’s look at some warning signs. One sign alone might not indicate a scammer, but two or three at a time definitely will. In all cases, be cautious.

No Local Contact Details or Reviews

It takes years to build up a local presence and reputation. The fly-by-nighters have no such luxury and lack a steady foundation of online reviews, or even a local landline or a fixed physical address. Be sure to check all of these when searching for a contractor or once you’ve received a quote.

Hazy on the Details

It’s absolutely vital before any work begins that you clearly outline every step of the job and settle on an agreement beforehand. Fake contractors will be fuzzy on the details or offer a heavy discount, only to pile on charge after charge at a later stage for “unexpected but necessary work” or tools.

The Nature of the Payments

Fake contractors prefer to receive payment that can’t be traced or cancelled. This means asking for money in cash, vouchers, prepaid debit cards, cryptocurrency, or wire transfers. Some contractors may even pressure you into accepting a loan through an organization they can vouch for, but who are definitely in cahoots with the scam.

Asking Upfront

Almost all contractors ask for a down payment before commencing work, but scammers will push for a much higher amount at the outset. Most states dictate a deposit percentage (10% in California and 20%-40% in others) on construction or repair work before starting. If your contractor is asking for more than that, consider that they might be seeking a large payout before disappearing.

Lacking the License

Whatever your state’s laws are regarding renovation and repair, an honest contractor should have no hesitation in providing you with their license and proper accreditation. Contractors without these might not only be fake, but can also cost you in terms of insurance and incidents that may occur.

Not Such Expert Knowledge

A contractor should know their business and all the laws that cover it. Don’t be afraid to test a potential worker with questions that they should be able to answer. Ask for exact measurements for compliance or slope requirements for drainage. A pro will have no trouble answering these.

High Pressure

Did you contact a contractor to look at your cracked driveway, but now they’re telling you your roof is in imminent danger of collapse, and they can fix that? Scammers and fake contractors make use of high-pressure sales tactics (impending disaster, building codes, super low discounts) to take advantage of your emotions rather than allow you to use common sense. Never accept the first deal, and don’t be afraid to say no or ask for more time. Remember, it’s your house after all.

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