Continued
Beware of the offer that's too good to be true. In general, an offer that seems too good to be true probably is. While it's not necessarily commonplace, contractors can and do offer estimates that are below what the project will likely cost in the long run. If a contractor is pressuring you to sign a contract (one that likely includes that the estimate is just an estimate and not a final number), then they could be hurting for business, which isn't a good sign. A good contractor will not need business so desperately that he has to bully you into signing a contract. When getting estimates, be sure to provide the same description (type one up if need be) to all potential contractors to make sure all of them are getting the exact same information on which to base their estimate.
· Avoid contractors who want cash. A contractor who demands cash payments is not reputable and should be avoided. In addition, one who demands exorbitant down payments is not only disreputable, but might be doing something illegal as well. While not all states have legal limits pertaining to how big a down payment can be, some have laws mandating that a down payment cannot exceed 10 percent.
· Beware of contractors who want homeowners to buy permits. Permits are required for just about any home improvement or building project. These permits are the responsibility of the contractor, and not the homeowner. A contractor should not ask the homeowner to buy the permits.
· Those in disaster areas should be especially wary. Typically, some of the more disheartening consequences of a natural disaster arise from the vulnerability of homeowners whose homes have been damaged or destroyed. Oftentimes, these people are at the mercy of contractors. While certainly not all contractors take advantage of homeowners in a vulnerable position, natural disasters are known for bringing out con men who are just looking to make a quick dollar, and don't particularly care if they provide quality service (if any at all). For those living in disaster areas, it's generally a good idea to be wary of contractors who have recently relocated to the community. In fact, all homeowners should be wary of a contractor whose work history they cannot verify.
· Beware of vague contracts. A contract between a homeowner and contractor should be very specific, detailing start and end dates as well as each task that will be performed. A vague contract, on the other hand, will more than likely lead to higher project costs, and the homeowner will not have much legal recourse because of the leeway in the contract.