When selecting a home professional, using a few guidelines can help protect you from fraudulent contractors. These warning signs indicate a contractor who may be running a scam:
Does not list a number in the phone book.
Asks you to get required building permits.
Only accepts cash.
Says you will get a discount if you find other customers for that contractor.
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Says your job will be a demonstration.
Offers exceptionally long guarantees.
Asks you to pay for the entire job up front.
Tries to scare you into signing for repairs claiming they are urgent.
Demands a lien on your property.
Always read and understand every word of a contract before signing. If you don't understand something, ask for clarification.