Okay, so
it’s a cheesy title, but it’s true! Just like lions and tigers are scary, so
are contractors. The construction industry gets a bad rap because of sneaky,
malicious contractors who prey on innocent, uninformed homeowners who are all
too willing to trust the “professionals.” In this article, we offer a few tips
on how to identify potential rip offs when it comes to your next home
renovation project.
The Door to Door Salesman
It’s always
wise to be cautious of a door to door salesman…in any industry really. When it
comes to contractors, however, reputable companies don’t have to go out and
aggressively seek new business. The majority of a “good” contractor’s business
is generated from referrals while a small percentage is acquisitions generated
from mailers, billboards, television and radio spots, and other types of
advertising. You don’t have to immediately dismiss a door to door contractor
salesman, but be wary. Just the other day, for instance, Sears knocked on my
door, twice! Large companies can actually take advantage of this type of sales
strategy because their brand is so well-known, and often times homeowners are
willing to pay a lot more to use a company with a national, recognized brand. So
tip number one: Be wary of the door to door salesman, but don’t be afraid to
hear him out.
Cash Deals Only
A “Whoa,
whoa, whoa, wait a minute!” is in order for any contractor who requests cash
deals only. Never pay a contractor in cash. You have no way to prove you paid
him. If you’re dealing with someone who is trying to pressure you into a cash
only deal, give him the boot – a steel toe preferably!
We
recommend paying with a credit card, check, and even a money order, but keep
the receipt. It’s up to you to negotiate the payment terms you are comfortable with
and can financially handle. Let’s face it, home renovations are expensive and
only you can do what you can afford.
Also, deposits
are sometimes requested. If you’re uncomfortable with giving money upfront,
negotiate your first payment to be paid at the end of the first work day, or
when the materials arrive for the job. Any additional payments should be
withheld until you are satisfied the job has been completed. Check the contract
terms, however, you don’t want to rack up late fees and interest for late
payments. You can also negotiate a full payment with the contractor after the
job is done and you are satisfied. Tip number two: Don’t sign up for a
cash-only deal. The real professionals are willing to work with you on payment
terms and would never ask for a cash-only deal.
High Pressure Sales Tactics
“…if you
don’t sign now, we aren’t gonna be able to get you on the schedule!” and “…if
you don’t sign today, you won’t get this price again!” Don’t listen to these
high pressure tactics. It’s responsible of you to take your time choosing a
contractor. Check out every contractor’s references, insurance, work, and
listings with the Better Business Bureau or other consumer protection agency.
You can’t
let someone rush you into making a bad decision. We’re talking about your home
here. Your home is most likely your most important and valuable asset. Protect
yourself and your family by making the best, informed, and confident decision
you can make without allowing sales strategies to force you into a regretful
and expensive decision. Tip number three: Don’t buy into high pressure sales
strategies.
In the end,
you can save yourself a major headache and lots of money by selecting a
contractor who respects you as a homeowner and as a customer; a contractor who
isn’t out to take advantage of you, but help you. With these tips, hopefully,
it’ll be easy to weed out the scam artists and the
“in-it-for-the-money-with-no-education” contractor. Best of luck!
