by Making a “Top 10” list is usually a good thing, but not when it comes to home improvements.
Every year the Better Business Bureau publishes its list of the top scams of the year, and home improvement scams almost always figure in the top five. In fact, in 2022 they were the number one riskiest scam reported in Canada, resulting in a median loss of $1,900 per incident. In 2023 they were the third riskiest scam, with a median loss of $2,000 per incident.
Home improvement scams are often perpretrated by door-to-door solicitors who offer quick, low-cost repairs, take payment, and often never return to do the work. If they do return, the work they carry out is often shoddy or doesn’t get completed, or the scammers try to increase the cost of the project well above the initial price quoted.
A relatively new wrinkle is aggressive outreach on social media, such as firms advertising air duct-cleaning services. Anyone who has spent any length of time on Facebook will have seen these ads, which are accompanied by dramatic-looking pictures of “dirty” vs. “clean” air ducts.
Look more closely, however, and you’ll notice that many use the same images and videos. The ads are customized to look as if they come from the local area, but there is often no company name or website, with customers asked to use direct messaging.
Those who respond will be asked for personal information and a hefty deposit. Once the money is sent, however, the “cleaner” either never shows up, or arrives and does a quick, sub-par clean, known in the trade as a “blow and go”.
Anyone considering hiring someone to do home improvements on their property, whether it’s inside or outside the home, or supply them with building materials should be aware of some red flags. These include:
– No company name, or a generic name (“Interior Contracting”) that is impossible to find, and no company website.
– If they are advertising on social media, the account is often only a few days or weeks old and has few, if any, followers or friends. Check to see if the name matches the user name in the URL; if it doesn’t, it’s likely a scam.
– Be wary if someone shows up at your door unannounced, claiming that they are doing work in the area. Make sure you are dealing with legitimate businesses that have proper identification, licensing, and insurance. Research the company online and with the Better Business Bureau.
– Don’t fall for high pressure sales tactics. Home improvement work often involves a serious investment, and a respectable company will not pressure you into making an immediate decision; they’ll understand if you need a few days to think it over and make up your mind.
– Just say no to cash-only deals, or “handshake deals” with no contract. If someone asks you to pay in cryptocurrency or via a wire transfer, or offers to arrange financing for you, just say no.
– While making a reasonable down payment is an accepted practise, an excessive down payment (or, worse, being asked for full payment up front) is a red flag. Reputable companies will ask for a small payment up front, with the balance to be paid in instalments as the work progresses (for large jobs) or at completion.
– Confirm that the vendor will obtain all relevant permits and comply with any applicable local bylaws.
– Always get quotes in writing, and nail down who is responsible in the case of cost overruns. If possible, obtain quotes from more than one contractor, to make sure that that “too good to be true” quote is accurate.
– Beware of suddenly increasing prices, or “unforeseen” problems that crop up and change the scope (and cost) of the project. If you agree to any changes, get them in writing.
– Don’t just ask for references; check them out, either by contacting the customers or viewing samples of work that has been done.
– If a contractor claims to have surplus building material left over from another job, or offers a great deal on material, be sure to inspect it before any cash changes hands.
– Scammers often target senior homeowners, and try to convince them that their home needs costly repairs, such as a new roof. If loved ones start talking about having major work done on their home, be aware of what is being done, why, and by whom, and don’t be afraid to ask questions.
– Take a look around your neighbourhood to see if anyone else has had work done recently. If you like what you see, reach out the homeowner to see if they would recommend the contractor.
