This class covered tips to protect yourself from home improvement scams. You learned how to spot potential scams and how to safeguard your home and finances when hiring contractors. Below are the key takeaways and next steps to ensure your home improvement projects go smoothly.

Key Takeaways and Next Steps

Recognize Common Scams

Door-to-Door Scammers: Be cautious of contractors who knock on your door claiming to be "in the area."
Leftover Materials: Scammers often claim they have materials from a previous job.
Pressure Tactics: Don't succumb to pressure for immediate decisions or payments.
Cash Payments: Avoid contractors who insist on cash payments or upfront full payments.
Building Permits: Scammers may ask you to get permits yourself.
Suggested Lenders: Be wary if a contractor suggests a specific lender for financing.

Avoiding Scams

Licensed and Insured: Only consider contractors who are licensed and insured. Verify their license with local authorities and ask for proof of insurance.
Recommendations: Get contractor recommendations from trusted sources, such as friends or family.
Check Reviews and Complaints: Consult your local Home Builders Association and consumer protection agencies for complaints. Use reliable online rating websites to read customer reviews.
Multiple Estimates: Obtain multiple written estimates detailing the work, materials, completion date, and price. Don't automatically choose the lowest bid without understanding the differences.
Read Contracts Carefully: Ensure the contract includes all agreed terms, the contractor’s details, start and completion dates, and your right to cancel within three business days if signed at home. Avoid signing contracts with blank spaces.

Home Improvement Loan Scam

Beware of Financing Offers: Do not agree to financing through a contractor without comparing loan terms independently.
Understand Loan Terms: Ensure you understand the loan terms and can meet the payment requirements.
Read Before Signing: Never sign documents you haven't read thoroughly, especially if they are in a language you don't understand or contain blank spaces.
Deed Transfer: Never transfer your deed to anyone without consulting a trusted advisor.

Reporting Problems

Resolve with Contractor: Attempt to resolve issues directly with the contractor first. Document all communications and follow up phone calls with certified letters.
Seek Help: If unresolved, contact your state attorney general, local consumer protection office, local home builders association, or dispute resolution programs.