Contractor Home Improvement Warning Signs

As a homeowner you want to be sure that anyone that you hire to do work on your home is qualified, dependable and insured. However, there are many less then honorable contractors out there and it can be difficult to know who you can trust. Below are some red flags that you should be aware of when you are preparing to hire a home improvement contractor.

The contractor provides you information about his business but you can not independently verify the information (name, address, telephone number or credentials). He may provide you with a business card but unless the information on the card can be verified, then it is not of any benefit to you.

The contractor stops by your home to solicit business (they were just in the neighborhood). This is quite common for chimney, painting and driveway repair scams. Good contractors have more then enough work and do not need to solicit door to door. If someone approaches you unsolicited, you should turn them down.

High pressure sales tactics are used to get you to sign a contract. An example of this would be when a salesperson advises that the price quoted is only available if you sign the contract today. Remember that if the deal seems too good to be true, then it is.

The contractor does not directly answer all your questions or provides vague answers or your questions.

The contractor offers you a discount for the job because they have extra materials. If a contractor has materials left over from a previous job, he overcharged the previous owner or didn't finish the last job.

The contractor cannot provide any references, is not listed with the Better Business Bureau or in the phone book.

Information provided by the contractor is out of date (expired insurance, references for jobs many years back). A reputable contractor should have a valid license or current insurance information.

The contractor asks you to pay in advance for the entire job or the contractor asks you to pay in cash or money order. Home owners should never pay for the entire job upfront. Most reputable contractors will want 1/3 of the money up front. Payment terms should be clearly spelled out in the contract and based upon performance.

The contractor fails to review your opt out rights to cancel the contract within three days.

You also want to be aware of contractors who are difficult to get a hold of, have poor communication skills or are impatient.