Is this email not displaying correctly? View it in your browser.

login-logo      Home Repair Rip-Offs

Homeowners have more to worry about than being ripped off by shady  contractors in this lagging economy, but such a climate brings desperation —  and with it, sadly, fraud. Of course, the majority of tradesmen are  generally honest professionals, but there is a large number of unscrupulous  contractors who will fix items that don’t need fixing, or grossly overcharge you  for services or parts. Worse, there are plenty of con artists posing as  tradesmen who will simply take your money and run. Inspectors are often the  first ones to uncover such fraud, so they too need to be familiar with its  common forms in order to best serve their clients.

Yes, this fortress was made by thousands of termites, but it is not evidence that any of them have entered your house.

Some common home repair scams include:

  • Roof work: Con artists are known to travel from state to state following  natural disasters and looking for victims of storms. Beware of people who  suddenly arrive in your neighborhood, offering to fix your roof at a discount.  Also, don’t trust a roofer who makes an assessment of a leaky roof from the  ground without examining it. Very often, the flashing is all that needs to be  replaced, even when the tradesman tries to convince you that you need a whole  new roof. Conversely, if you’re doing a new roof, make sure to get new flashing too, you don’t want a new roof that leaks near the chimney in the near future.
  • Driveway sealers, asphalt companies:  This time-honored grift has a tradesmen pulling up  to your home in his truck and offering to re-seal your driveway using leftover  “sealant” from a job “just down the block.”  The low price is unbelievable,  and so is the job.  Generally, the sealant is paint or some other cheap,  black spray media that will quickly wash away with the next rain. A common thing is “we have extra material we can give you a great deal on a new driveway”. This is not true. If it is, do you want a guy who over-estimates his material by enough for a complete extra driveway?
  • Exterminators:. Myths that exaggerate the dangers of termites abound, and  homeowners can be easily duped into unnecessary treatment. Ask for prices from  more than one company and compare their services. Make sure to get a guarantee  that covers you in case termites return within a given period of time. Read the  guarantee and the rest of the contract carefully before you sign! Be on guard  for the following ruses:
    • The exterminator shows you termites on a fence or woodpile that is not  connected to your house. If he were competent and honest, he would know that  these termites pose no threat to your home.
    • He (but not you) witnesses “evidence.” Make the exterminator show  you the alleged evidence of the infestation. Termite-damaged wood is  hollowed out along the grain, with bits of soil or mud lining the  galleries.
    • He offers a free termite inspection, and his motives are questionable  to begin with. He may bring the evidence to your house with him.
    • One local company was busted spraying water during the winter treatment.
  • Chimney sweeps: Beware of any chimney sweep who arrives at your door  unannounced, offering to perform his services for a low price. He might say that  he’s just worked on your neighbor’s chimney, and offer you a suspiciously low  price for a sweep. In our area, I’v e heard they call “because they will be in the area” and offer a low price for a vey short time. The inspection will then uncover “problems” that quickly  balloon the price.
  • HVAC specialists: The most common HVAC rip-offs are replacing parts that  work fine and substituting used parts for new ones. Some shady contractors will railroad consumers into new systems when a repair may be a suitable fix. If you get suspicious, ask  to see the alleged broken parts before they’re replaced, and look at the  packaging and documentation for the new parts before they’re installed. If  possible, have HVAC work performed in the off-season, as it may be significantly  cheaper.
  • Plumbers: Parts cost plumbers only a tiny fraction of the total charge for  their services, but some plumbers will still cut corners to boost their profit.  They may use plastic or low-grade metal, for instance, or 1/2-inch pipe instead  of 3/4-inch pipe. Ask what they are installing and how long the parts will  last. A good plumber should be able to provide an accurate quote up front. Granted, its possible that work can uncover other damaged items.
  • Painters: Some painters agree to use a specific brand of high-quality paint,  then pour cheap paint into name-brand cans. Most of the cans the painter brings with him should be sealed when the job is started. If not, ask why. Other  painters skimp on the prep work. Your initial agreement should stipulate priming, and can even mandate 2 coats. I’ve seen where painters do the job with one coat, then when the client complains about thin spots, try to upcharge, stating that the agreement was for just one coat.
  • Good for only today: A contractor in RI is famous for this, they come by, give you a quote, but its only good if you sign up now. This is a scare/pressure tactic. That said, many contractors will give a quote that is good for 30 or 60 days, but this is because material costs can change with the price of oil, that’s reasonable, it still gives you time to get another quote or two.
  • Paying to be a preferred customer: A contractor in RI was busted for charging clients a fee to be a preferred customer.  The client could pay a fee to get a “discounted rate” on all future repairs. The deal is there was no discount, the contractor actually had HIGHER prices for preferred customers. Yup, they figured these jobs weren’t going to have any price shopping and they could charge more. Clients were paying to be gouged.
  • Anyone without a license/registration: In Rhode Island, anyone doing work in your home is required to have a registration or the appropriate trade license. A consumer should always ask for this as well as proof of insurance. The RI contractor registration board mandates insurance to keep the registration valid. Look them up, the web site will show if they are registered, is the registration valid, expired, revoked?

Homeowners should heed the following advice whenever they hire a  contractor:

  • Go to to find an InterNACHI inspector who will stop  by and make sure your construction project is done right.
  • If you are calling a contractor for an estimate and you live in an affluent  neighborhood, don’t mention your address or phone number until you get the  estimate. You can even call a tradesman in a less wealthy town or neighborhood  that’s nearby, as their price will likely be lower than the going rate in your  area.
  • Try to negotiate a flat rate if the tradesman has no idea how much the job  is going to cost. This is especially helpful in plumbing work, as almost all  pipes are hidden behind walls and the job can easily become more complicated  than originally planned.
  • Ask if the tradesman charges for travel time. If he does, it may be cheaper  to choose someone who is closer. Also ask if he charges for time spent  traveling to supply stores.
  • Know your contractor. Be sure he is licensed, and get a written agreement  stating the cost and the work to be performed.
  • Beware of any contractor who shows up at your door unannounced or calls you  on the phone. Con artists must move every so often to frustrate law enforcement,  so they have no fixed address and rely on door-to-door or phone solicitation.  For the same reason, their invoices may contain only a P.O. box rather than a  street address.
  • Always be wary of a contractor who recommends a particular company or  individual after “discovering” a problem, as he will probably receive a kickback  for the referral, so you cannot trust his advice.
  • Beware of a contractor who tries to unnecessarily increase the scope of a  project. Also known as an upseller, these people will do the following:
    • not offer you a range of options, including cheaper alternatives or work  that is different than what you had anticipated; or
    • use scare tactics to persuade you to take his recommendations.
  • Beware of contractors who insist that they are  charging you only for  what they paid for the materials, if they are, in fact, making a profit on the  materials. Material over-charging is unethical if the contractor lies about  it.
  • Beware of material-swapping, in which the contractor will buy premium  products and make you reimburse him, but then he returns the product for  something cheaper and of lower quality, and pockets the difference. If you  suspect material-swapping, you can uncover the farce at the end of the job by  comparing the packaging with the products listed on the receipt.
  • Do not give a large down-payment. It may be appropriate to pay a small  percentage of the total estimate up front, but if the contractor asks for most  (or all) of the money up front, he may be a con artist. Paying half up front is the normal convention. Even if he does return  to perform the work, he may botch the job or leave it unfinished, leaving you  with little power to contest. And, of course, never pay in cash. Never finish paying until you’re satisfied with the work. Get any change orders and payment schedule in writing.
  • If you are elderly, be on heightened alert for scammers because you will be  targeted more often than your children.
  • Call me if you need a reference/referral to a quality tradesman.
In summary, homeowners and inspectors alike should be wise to the plethora  of ways that home repair contractors, or those posing as such, rip off their  clients.
Mike Auger CMICMI+Logo125
Auger Enterprises, Inc.
Facebook Twitter

R.I. Home Inspections, Auger Enterprises, Inc. Newsletter Subscription. 51 Hollywood Ave, Warwick, RI 02888. You are receiving this newsletter because you requested it, or have done business with Auger Enterprises, Inc. visit us online at

Unsubscribe | Manage Subscription