Tips On How Not To Become A Victim Of Home Repair Scams

With recent reports of home repair scams going around South Utah County, many home owners are wondering what they can do to make sure they are getting what they pay for when hiring people to perform services around their home. Here are some home service best practices you can use to protect your home, your family and your wallet.

Rule number one: Don’t pay until the work is complete. A down payment is reasonable for a contractor to ask for, however any time a contractor requires more than half the price it should be a red flag to you. 

Make sure you don’t pay anything until you have a contract that clearly spells out when payment is due, payments terms, and what the contractor is going to provide for that payment.

There are exceptions to every rule; for example, if you are ordering custom made items the contractor does not want to get “stuck” with, you may be asked to pay upfront. Again, your best protection there is a well laid out contract that clearly sets expectations and outlines consequences for not meeting them.

Second rule: Don’t let yourself get bullied into “today only” or “we have some left over materials” deals. A contractor knocking on your door saying they just finished a job up the street and have some left-over material they can sell you at a “screamin’ deal” is another huge red flag. Some of the most important skills of being a successful contractor are ordering what you need and not wasting what you order. If they have left over material, they haven’t mastered those skills, but that is not your problem. Saving a few extra dollars is not worth opening yourself up to scammers.

Today only pricing should send up another red flag. If they can do a job for one price today, they should be able to give you the same price the next. Prices for equipment do go up, labor rates change, incentives and rebates are usually for limited times, so it is unreasonable to expect that a quote given six to 12 months ago would still be in place. But none of those factors would change the price of a job overnight, so if you aren’t feeling comfortable with making your purchase give it 24 hours. A good deal should still be a good then, if not, it probably wasn’t that good of a deal to start with.

Third rule: Don’t fall for Bait and Switch advertising. About now you are probably hearing your Grandmother’s voice telling you, “If the price sounds too good to be true, it probably is.” Never was that more true than now. There is a lot of competition to lure customers in with the best price around. But the simple truth is, it costs money to be in business. If contractors are advertising deals that are so low they don’t cover their overhead, then they are counting on that “special price” to get themselves in your door so they can sock it to you with additional costs later. 

Perhaps the most important rule you can follow to protect yourself is to make sure you are working with a licensed contractor in good standing with the Department of Professional Licensing. 

What is the difference? Doesn’t it just mean they cost more? Isn’t that just government sticking their noses in our business? However you feel about government over reach or taxation, the law of the land is that contractors in most home service trades must be licensed. Here are a few important reasons why:

Unlicensed means unsafe. In many industries an untrained, unlicensed contractor may only mean poor service or loosing your money. However, there are some industries like the HVAC and electrical industries where hiring an unlicensed contractor can literally be risking your family’s lives. 

Licensed HVAC contractor, Robert Moore with Nebo Comfort Systems points out, “With hundreds of deaths throughout the country every year caused by carbon monoxide poisoning, safety has to be as important to you as saving a few dollars. Don’t trust your family’s comfort and safety to someone who doesn’t respect them enough to obtain the proper licensing. ” 

Unlicensed means unsure. While a license is not an absolute guarantee of quality, it does give you an added measure of confidence and control. If you have a problem with a licensed contractor you can file a complaint against their license at dopl.utah.gov, if they are not licensed, you have little recourse other than small claims court. 

“Consumers aren’t helpless when it comes to bad workmanship,” stated Joan Wright with the Division of Occupational Licensing. “Let us help you. Use the system to get resolution.”

Unlicensed means uninsured. Without the required license a contractor can’t get liability insurance. That leaves you completely unprotected.

“Always request proof of their insurance to protect yourself!” stated Tim Shanto, with American Family Insurance. “A claim for any damage to your home as a result of work done by a contractor should go on their insurance. If they don’t have insurance, you are going to be stuck paying for it. Home owners insurance does not cover damage done by an unlicensed contractor.”

Verifying a contractor’s license is easy. Go to dopl.utah.gov and choose Verify a License from the menu on the left. Type in the company name, check the license status, and then make sure there are no complaints, no agency and disciplinary actions against them. 

“If they aren’t listed, they aren’t licensed,” added Wright. “Stay away, it just isn’t worth it.”

You have more resources than you know for finding good quality contractors for your home repair needs. Use Google +, Facebook and other sites to check a contractor’s reviews before hiring them. You can also use Facebook to ask your neighbors and friends who they have had success with.

Scams of any kind can be disheartening. Use these suggestions to outsmart scammers or less than reputable contractors and keep your home safe, secure and looking great.