Spring and Summer are the Peak Seasons for Home Improvements - and for Scammers Trying to Cash in
The New York State Division of Consumer Protection today warned consumers to be alert for home improvement scams. Late spring and summer are peak seasons for home improvement projects, but home improvement scams can cost homeowners thousands of dollars and leave them with poor workmanship, unfinished projects, or an unsafe result. Home improvement scams have consistently ranked among New Yorkers’ top five consumer complaints.
“Spring and summer times are the perfect seasons to do home renovations, but consumers should be wary of unsolicited contractors who knock on your door offering repairs or home improvement projects at a ‘bargain price’ because it could simply be a scam,” said Secretary of State Walter T. Mosley. “The Division of Consumer Protection offers tips to New Yorkers so they can avoid costly mistakes by hiring nefarious scammers who can take advantage of their hard-earned money with an unfinished job or no work at all.”
Consider the following list of tips to avoid common home improvement scams:
Before Hiring a Contractor, Always Research and Verify:
- Shop Around: Get at least three written estimates. Each estimate should clearly list:
- Materials to be used
- Scope of work
- Labor costs
- Estimated start and finish dates
- Payment schedule
- Verify Credentials: Ask friends and neighbors for referrals. Check online reviews, references, and complaint history through the Better Business Bureau, local consumer agencies, and state records. Be cautious if the contractor has no physical address or changes business names often.
- Check your local government licensing requirements: New York State does not license home improvement contractors. However, some counties and local municipalities do, including New York City, Suffolk, Nassau, Westchester, Putnam, and Rockland counties, and the City of Buffalo. If your local government requires licensure for home improvement contractors or certain home improvement trades, be sure to only hire a licensed contractor.
- Know the codes: Check with your town or county about permit requirements and the applicable building codes. Be sure you or your contactor obtains the necessary permits.
Avoid Major Red Flags:
- Be cautious if someone:
- Knocks on your door unexpectedly
- Says they have “leftover materials from another job”
- Pressures you to sign today
- Demands cash only
- Refuses permits or paperwork
- Keeps finding new urgent problems after starting
- Wants you to finance through “their lender”
- Asks you to sign insurance checks over to them
- Many good contractors are too busy to seek business at your front door. Be wary of contractors that knock on your door offering repairs or home improvement projects at a “bargain price” or because they have extra supplies left over from another project in your neighborhood. Scammers provide poor-quality work or may be quick to disappear if the homeowner provides any type of payment up front.
- Unscrupulous actors may exaggerate home improvement issues or claim a recent city, state, or federal regulation requires immediate upgrades to create a false sense of urgency and panic and push homeowners into unnecessary and expensive repairs.
Be A Savvy Consumer:
- Get It in Writing: A contract should include:
- Contractor’s full name, address, and phone number
- Detailed work description
- Total price and payment terms
- Timeline
- Warranty terms
- Change-order process for extra work
- Don’t sign anything until you have decided to hire: You should not have to sign anything until you are ready to hire a contractor. Never sign a document that has blank spaces – if anything is “not applicable” the language should be removed or crossed out and signed by the contractor. Do not sign anything if you are not sure what it means for you or the project. Take the time you need to make sure you are comfortable with the contract.
- Never Pay Full Price Up Front: Avoid large upfront deposits. Use a staged payment schedule tied to completed work. Pay by check or with credit card when possible. Do not pay with cash, wire transfer, Zelle, or gift cards. Withhold final payment until the job is complete and satisfactory.
If Problems Arise: First, speak with the contractor and try to reach a resolution. If a resolution is not possible, file a complaint with your local consumer protection agency or the New York State Division of Consumer Protection at https://dos.ny.gov/
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