Every year, contractor scams and remodeling fraud costs investors thousands of dollars, as well as a lot of aggravation and stress. Contractor fraud is a growing problem. As an investor in the real estate market, it is important that you know how to protect yourself against such criminal activity.
Watch Out
In addition to the obvious warnings, you should also keep an eye out for these signs of ill intent:
• Solicitors
Be leery of anyone going door-to-door peddling repair work. The person may seem friendly and knowledgeable, but professional contractors do not typically use such a method to obtain work. In addition, door-to-door solicitors can be difficult to track down once the crime is committed.
• Good Samaritans
These are the people who claim they were working in the neighborhood and noticed you could use some repairs on your property.
• Surplus Discounts
These scam artists claim to have material left over from a job they are doing in the area and are willing to offer you a discount.
• Immediate Action Required
If you are ever told that you must act right now or lose the opportunity to save money, say no. Real business professionals know that you need time to talk it over with your spouse, etc. Criminals are always in a hurry.
• Favors
Some scam artists claim they will give you a discount if they are allowed to use your property to advertise their skill, sort of an I scratch your back, and you scratch mine kind of thing. However, you just end up being scratched.
More often than not, once these crooks get a considerable amount of money, they simply disappear. By the time you realize you have been taken for a loop, they are long gone with your money. The safest way to avoid a contractor scam is to never hire anyone without first doing a little checking around to make sure they are legit.
Property Options Australia
Property Options Blog © 2006 – 2009
Hi Sean,
This is excellent advice. When these kinds of people show up at your door; they are generally very good communicators. They’re likable and very friendly. They’ve learned what mask to wear to get people to trust them.
So, bottom line; beware of smiling, friendly contractors.
It is a shame that these sort of people actually exist. Great advice and anyone in the real estate market really needs to be aware of this sort of misconduct.