How To Avoid A Contractor Scam in Boston

NextHome Titletown Real Estate - Sell Your Home Boston MA

Home sellers in Boston often need to hire contractors for repairs, renovations, or even major remodels, especially in the wake of a major natural disaster like a Nor’Easter, blizzard, or a flood. It’s in these situations especially that homeowners are susceptible to a contractor scam. Taking advantage of homeowners at their most vulnerable is, unfortunately, not uncommon.  For example, contractor scammers bilked people in New Jersey out of millions after the passage of Hurricane Sandy. But you can protect yourself if you know what to look for and how to hire reputable contractors. Here are a few ways to keep your guard up and avoid a contractor scam in Boston.

Contractor Scams – Red Flags

The first component of avoiding a contractor scam in Boston is knowing the warning signs and red flags for which you should be on the lookout. Most scams start with a phone call or knock on the door out of the blue. Typically, legitimate contractors contact you only after you first reach out to them. Additional red flags include:

  • Demanding payment or a cash deposit up front
  • Driving vehicles without a company name and/or logo on them
  • Driving vehicles with out-of-state license plates (beyond MA/NH/RI/ME)
  • Not having a local address, just a P.O. box or even a hotel address
  • Being on any of a number of law enforcement lists

(Be aware, however, that just because a contractor is from out of state, she isn’t necessarily seeking to perpetrate a scam). But you have to make sure.

Check Licenses, Insurance, and Bonding

In many states, contractors – from plumbers to electricians to roofers– are required to have state and local licenses. Before you do anything else, you should ask to see these licenses and any pertinent supporting documentation. Industry experts advise jotting down license numbers and calling “the appropriate licensing authority to make sure the contractor is legitimate.”

In addition, contractors should carry insurance to cover any damages (which your own homeowner’s insurance typically won’t cover if the contractor isn’t insured). So definitely be sure to get proof of insurance. This will help you avoid a contractor scam in Boston because it’s just a matter of course for reputable contractors to carry such insurance. Another way to avoid becoming a victim of a contractor scam is to check the contractor’s reviews on reputable third-party review sites. And don’t forget to check out her Better Business Bureau rating.

Contractor Scam

Demand Four References

It’s fairly standard practice for contractors (and many other professional service providers) to be ready to produce three references. But don’t stop there – demand four references. Here’s what a top insurance source suggests with respect to the fourth reference: “request they provide someone who had to call them back to fix a problem with the contractor’s work. If the individual can say the contractor fixed the problem to his satisfaction, then you have a good idea of what kind of work he does and whether he follows up until the homeowner is satisfied.” A legitimate contractor who really wants your business will go the extra mile to provide that fourth reference.

Get Written Estimates

Another way to avoid a contractor scam in Boston is by getting written estimates, never just verbal ones. Written estimates today include anything that you might DocuSign, since e-signatures are readily used within the real estate world today.  In addition, that written estimate should be on company letterhead with all the standard pieces in place, such as company name, logo, and contact information.

The written estimate should also be detailed and itemized, listing all the repairs or segments of the work and prices for each one. The estimate should clearly state how much of the bill is for labor and how much for materials. In addition, it’s standard practice for bids and estimates to come free of charge. If the contractor can’t or won’t provide such an estimate, then look out.

Have a Signed Contract in Place

If all of the above things check out and you’ve decided to go with a particular contractor, then the next essential step to avoid a contractor scam in Boston is to get a signed contract in place. In fact, any legitimate contractor will be eager to have a signed contract.

Make sure the contract is filled out correctly and fully, with no blank spaces that an unscrupulous contract could fill in later  to your detriment. And if you find any of the language in the contract dubious or unclear or ambiguous, don’t sign it! Tell the contractor you want time to review it further and think about it. If this makes the contractor nervous or if she balks at this idea, there’s another red flag.

Consult Your Real Estate Agent

An additional precaution you can take to avoid a contractor scam in Boston is to consult you experienced real estate agent. While your agent can’t recommend or reject contractors, she does have knowledge of this kind of work – how much it costs, how long it should take, and so on. Our agents can provide this kind of valuable assistance.

At NextHome Titletown Real Estate, our agents have decades of experience dealing with contractors and clients.

To discover more about how we can help you avoid a contractor scam, contact us at (617) 657-9811


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The property listing data and information set forth herein were provided to MLS Property Information Network, Inc. from third party sources, including sellers, lessors and public records, and were compiled by MLS Property Information Network, Inc. The property listing data and information are for the personal, non commercial use of consumers having a good faith interest in purchasing or leasing listed properties of the type displayed to them and may not be used for any purpose other than to identify prospective properties which such consumers may have a good faith interest in purchasing or leasing. MLS Property Information Network, Inc. and its subscribers disclaim any and all representations and warranties as to the accuracy of the property listing data and information set forth herein.
MLS PIN data last updated at May 24, 2020 11:32 PM ET

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