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 contractor scams.

Check out the contractor to avoid a contractor scam

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 reputable contractor
• 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 contractor scams

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 companies.

Guarantee and Warranty in writing avoid contractor scams

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.

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