How to recognize a remodeling scam

School's out and you're thinking about replacing a decades-old roof. As if in answer to your thoughts, a guy in coveralls shows up on your doorstep and offers his services. He just happened to be driving through the neighborhood and noticed that your roof's missing a few shingles. Fortunately, his truck is loaded with materials left over from a previous job. He'll give you a great deal, but it's a limited-time offer. After all, he's a busy contractor. His skills might be needed elsewhere — soon.

Should you hire him?

If it sounds too good...

According to the FBI, there are over 14,000 scam artists at work on any given day. Perhaps the information presented here will help you avoid becoming a victim. If you have questions, please call us. Remember, if it sounds too good to be true, it may well be a scam.

Before taking the bait, consider that remodeling scams often rise to the top of fraud listings published by the Better Business Bureau, especially in the aftermath of natural disasters such as floods or hurricanes. So it pays to be skeptical. Before hiring a remodeling contractor, watch for these warning signs:

• High-pressure sales. If a contractor claims that a "special price" is available today only, or pressures you to pay for a project before you're ready, beware. Honest contractors will give you plenty of time to do your homework.

• Cash right now. Never pay more than ten percent of the project's cost upfront, and don't part with the final payment until you're satisfied that the work has been completed properly. Watch out, too, for contractors who demand cash instead of checks or credit cards.

• References — don't bother asking. If the contractor hesitates when you ask for references, take note. And don't forget to follow up. Call previous clients whose projects were finished a few months ago; then go back four or five years. Ask how those projects are holding up and how the contractor treated former customers.

• License and insurance — who needs 'em? A reputable contractor will be licensed and bonded. Get the contractor's insurance and business license numbers and verify all information. With a little effort, much of this research can be done online. Check the Better Business Bureau for complaints lodged against the firm, and type the contractor's name into your favorite search engine. The results might surprise you.
• Google the person that you will hire.