Spring is here and many homeowners begin remodeling and home improvement projects. In fact May is known as National Home Improvement month. Unfortunately, every year we hear about homeowners getting ripped off by scam artists who are posing as remodelers or contractors.

There are a number of red flags that can tip you off to a potential home improvement or remodeling scam. Below is a list of warning signs that can alert you to the fact that you might be dealing with a potential scam artist or unscrupulous contractor:

• Solicits door-to-door
• Offers you a discount for finding other customers
• Just happens to have materials left over from a previous job
• Tells you your job will be a "demonstration" or that your home will be a "model" home
• Pressures you for an immediate decision, i.e., "this offer is only good for today"
• Asks you to pay for the entire job up-front or only accepts cash
• Suggests that he can help you finance the project and that you borrow money from a lender he knows
• Does not list a business number in the local telephone directory
• Asks you to get the required building permits

There are also a few key points and best practices to keep in mind when contemplating a home improvement or remodeling project:

• Be skeptical of any contractor or handyman who solicits door to door—most well established and reputable contractors find their work through referrals.
• Try to get a recommendation for a contractor from a friend or coworker.
• Always ask for proof that a contractor is licensed and bonded.
• As for references that include addresses and phone numbers and call or visit those references.
• Always have a contract in place before the contractor/remodeler begins work.
• The contract should include the contractor’s name, address, phone and license numbers. It should also include details about what the contractor will and will not do.
• There should always be an estimated start and completion date.
• All warranties should be listed with their details.
• Any oral promises, should also be written into the contract.
• There should be a method for dispute resolution and it should be clearly delineated as to which parties bear what cost of the process.

Keep in mind, your home might be your best financial asset and you need to not only research your project, but research the individuals who you employ to complete your home improvement or remodeling project.

For more information on home improvement and how to go about them, check out this article in our neighborhood resource guide focused on finding a contractor and home improvement projects.

Tags: Home Improvement