Building and Remodeling 
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How to avoid the bad
residential building contractor

You should avoid the bad residential building contractorNaturally you want to find and hire only the best residential building contractor for the job. However, actually finding that person or company can be difficult if you don’t know what you’re doing.

Most residential building contractors are, of course, reputable. They will endeavour to do their best to complete the job within budget, on time and with quality results. However,, it's a fact that not all contractors are good or honest. You should always keep this in your mind and know what to watch out for when it comes to scammers or even inexperienced professionals.

The following things are red flags to look out for
when hiring a residential building contractor:

· Soliciting for work door-to-door. A good residential building contracting company doesn’t need to do this to get business.

· When they offer discounts that seem too good to be true. For example, if a "contractor" knocks on the door and offers to fix your damaged roof for a great rate because he has "materials left over from another job," he is likely a scammer.

· Cash payments only.. They’re likely to take your money and you’ll never see or hear from them again.

· They have no known business address or even a telephone number listed in the phone book.

· A residential building contractor that asks you to obtain permits, although sometimes it is easier and less costly for a homeowner to do this, so use judgment here.

· Special price offers. For example saying your home will be the "demonstration." When hiring a residential building contractor you want to see their past work, not be it.

· Requesting full payment up front. This is a huge red flag. Avoid a contractor who requires this. A deposit is more than reasonable, but paying for work before it's done is not.

Other scams may include a residential building contractor who offers to help with the financing by suggesting a lender "they know". Be careful. Read all the documentation with extreme prejudice. The fine print could actually have you signing over your house to the contractor.

Most contractors are consummate professionals who pride themselves in quality work, but unfortunately there are those out there who pray on people who don't know what they're doing. If an offer seems fishy or just too good to be true, be very cautious. The investment is in your home, which means your future as well.

As a major investment in your home you may be considering obtaining a home equity loan, so here's some advice on home equity loans and how to avoid home equity loan scams.


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