Homeowners need to remain vigilant against unscrupulous contractors who are more focused on making a fast buck than delivering satisfactory outcomes.

About one out of every 10 adult Americans becomes a victim of a scam or fraud each year, according to the Federal Trade Commission. A significant number of these fraud charges involve home improvement scams. Avoid this fate by increasing your awareness and implementing a few basic safety measures. 

The FTC provides guidelines to help you select a trustworthy contractor who can achieve the desired outcome for your project. Don’t trust anyone who:

• Knocks on your door looking for a job 

• Wants to use leftover material from a previous project on your job 

• Pressures you to hire them right away for work

• Only accepts cash, wants you to use a lender they know, or asks for the entire payment upfront

• Asks you to take care of securing building permits 

• Doesn’t have a published business phone number

TRUSTED LOCAL LENDERS 

Approach trusted local lenders first when seeking out a home improvement loan. If possible, obtain a loan from a financial institution where you have a prior business relationship. Always be aware of potential scams where fraudsters offer to arrange loans through unfamiliar lenders. Thoroughly research and trust the lending institution before proceeding with any agreements.

DOCUMENT IT ALL 

Comprehensive documentation can often help with the early identification of dubious business practices, while also providing proof if anything turns into a legal matter. To safeguard yourself, the Better Business Bureau strongly advises homeowners to avoid participating in cash-only transactions, high-pressure sales tactics, substantial upfront payments and informal handshake agreements without a written contract. 

Thoroughly read and understand all documents before signing them. If you find yourself feeling uneasy, seek the assistance of a lawyer who can help you navigate the intricacies of these legally binding documents. There may be a fee involved. Still, it’s better to pay now and get a clear understanding of the terms and conditions, than to find yourself entangled in a subsequent legal battle.