Released Feb. 22, 2008
LITTLE ROCK, Ark. -- After a tornado, home improvement scam artists spring up in neighborhoods with promises to fix everything that’s broken.
"Homeowners, anxious for help, often fall victim to unscrupulous sellers," says Laura Connerly, a family resource management instructor with the University of Arkansas Cooperative Extension Service.
How can you as a consumer be sure you're getting your money's worth when you hire someone to fix up your home?
Learn to recognize the signs of fraud and follow this advice if you're in the market for home repair. Here are warning signs that someone is not being honest.
- Solicits your business door-to-door or by phone
- Warns you that you need to make repairs immediately
- Talks fast to confuse you and coerces you into signing papers today
- Happens to have materials left over from another job
- They're doing other work in your neighborhood
- Offers a discounted price, but only if you buy today
- Tells you something that sounds too good to be true
- Only accepts cash and wants full amount up-front
- Asks you to obtain the required building permits
- Doesn't have a business listing in the telephone directory
How can you avoid being scammed?
"Never hire someone on the spot," Connerly advises. "Always obtain at least three estimates and compare prices. Don't assume that the lowest price is the best deal. A good reputation is also valuable; therefore, ask potential contractors to provide you with references. Check reference to determine if others have been pleased with past work performance."
To get the job done right, she says, know what you want before talking to a contractor.
"When you make a decision to hire someone, ask for a detailed description in writing of the work to be done, the materials used, starting and completion dates, the total cost and payment schedule," Connerly says.
Never pay the full amount of a contract in advance. Arrange to pay for the work in installments as the job is being completed. Make the last payment after the work has been done according to the contract and to your satisfaction.
Make sure the person you hire has liability insurance. Ask to see a copy of their workmen's compensation policy. You could be liable if a worker is injured on your property; therefore it's a good idea to check your homeowner's policy or call your insurance agent to determine the extent of your liability coverage.
"It's risky to hire someone on a ‘cost-plus’ or ‘time and materials’ basis," Connerly cautions. "Decide on the total cost from the beginning; otherwise the contractor may have little incentive for completing the job in an economical or timely fashion.
"Steer clear of companies or salespeople who try to pressure you into signing a contract with scare tactics or threats such as ‘This price is available only if you sign today.’ In addition, contractors who use a post office box with no street address or telephone number or who won't give you references, shouldn't be considered."
If you become a victim of a home improvement scheme, don't be embarrassed. Report your circumstances to the Better Business Bureau (http://www.arkansas.bbb.org/) and the Attorney General's Office (http://www.ag.arkansas.gov/). They attempt to apprehend swindlers and help to right wrong, Connerly says.
For more information about this and other consumer issues, contact your county extension agent or visit http://www.uaex.edu and select Families and Consumers, then Money.
The Cooperative Extension Service is part of the U of A Division of Agriculture.
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http://www.uaex.edu/news/february2008/0222homescam.htm
Contact: Lamar James, (501) 671-2187 or (501) 753-0207, ljames@uaex.edu
