Home Improvement Scams

What Is a Home Improvement Scam? 

A home improvement scam is an attempt to steal from homeowners through fraudulent promises related to home repair services. The schemes can take several forms. Home repair scammers may take advantage of disaster victims, who are experiencing a desperate time and ready to take any good offer of help. Other times, a contractor may knock on your door, saying they noticed your roof needs repair, and offering you a special deal. After demanding a big deposit up front, they scram, never to be seen again. 

Sometimes the scammer is a genuine handyperson with unscrupulous business practices; for example, they may agree to a small job at your house, then identify numerous costly and “essential” repairs that have to be done in order to complete the work which come with an additional cost. 

How to Report a Home Improvement Scam

If you or a loved one becomes the victim of a home repair scam, you have recourse. Confide in a trusted person for support, and report the incident to one or all of these resources: 

• Your local police 

• Your bank

• Your state’s attorney general’s office

• Your state’s consumer protection office 

• The Better Business Bureau®’s Scam Tracker

• The National Homebuilders Association

Don’t delay. If you know it’s a scam, time is of the essence to communicate with people who can help stop the transfer of money and track down the fraud. 

Source: National Council on Aging

Unfortunately, older homeowners need to be extra vigilant. Statistics on these scams show that seniors are targeted at a higher rate, supposedly because scammers believe them to be wealthier, more likely to be trusting, and more likely to have cognitive problems. 

How to Spot a Home Repair Scammer

Keep a wary eye out for these flags that may indicate you’re dealing with a scammer or disreputable contractor.

• Beware of convenience. If someone knocks on your door offering a fantastic price on a new roof, treat that offer like you would a random text message offering you a remote job that pays $1,000/week (i.e., wave goodbye as you shut the door). Choosing a contractor always involves some research. Commit to identifying at least three recommendations from real people before hiring any contractor.

• Beware of urgency. Like scammers who operate by text, phone, or email, home repair scammers will try to get you to act fast without stopping to think. If they say your issue is urgent or dangerous, especially if it’s a new issue you didn’t expect, take the time to get multiple quotes anyway.

• Beware of requests for payment in cash, cash apps, or money transfer. Any contractor who asks to be paid in an untraditional, hard-to-trace method is raising a big red flag.

• Beware of prices that are way lower than other quotes. Generally, all the quotes you receive should be within 10% of each other. A much lower, too-good-to-be-true quote is just that. Don’t believe anyone who says their quote is lower because they have extra materials left over from another job; that’s a common line among scammers. 

• Beware of non-contract projects. Ask for something in writing, even if it’s just a simple scope of work with a quote for a small job. If they hesitate to provide it, that’s another red flag.