Protect Yourself From Homeowner Scams

Owning a home gets complicated enough without the added issue of people attempting to scam you on home repairs or other property related work. However, according to the 2011 Consumer Complaint Survey Report by the Consumer Federation of America, home improvement scams appeared as one of the five fastest growing complaints by American consumers. The report offers personal stories of individuals scammed during a variety of home improvement projects and hopes to inform consumers to reduce the likelihood that they fall victim to similar experiences. The federation recovered more than $147 million last year alone for homeowners who were scammed.

Don't Pay in Advance: Paying up front for home renovations can be a very costly mistake. In one instance reported by the Consumer Federation of America, a school teacher shelled out $17,000 for a home addition only to have the contractor close his business and flee to Asia before even starting the work. Fortunately, he was later tracked down in California and forced to pay the teacher back in full; however, many contractors get away with similar scams because homeowners don't know how to find them or who to call for assistance. To protect yourself, only pay a deposit up front and then pay for the work in increments as it is completed.

Check for Licensure: Nearly anyone can claim to be a contractor, a locksmith or any number of other professionals to gain access to your home or secure money for a future project. Before you allow anyone into your home or pay for any service, check online to ensure that the person you're considering for the job has the appropriate licensing for your state. You can also simply search their name or business name to find possible customer reviews or complaints.

Pay for Items and Furniture with a Credit Card: When you pay with cash or a check for furniture and other items that are to be delivered, you have few ways to recoup your money if the goods never arrive. The Consumer Complaint Report described one New Jersey Company owner who embezzled more than $60,000 in customer payments for furniture that he never delivered, shortly before closing his business. If you pay with credit, you can dispute the payment then your items don't arrive and possibly get your money back.

Be Weary of Door to Door Contractors: It might be tempting to pay the guy on your doorstep who offers to pave your driveway for half what you might pay a traditional company, but fight the urge until you check out his background. One example portrayed in the Consumer Complaint Report involved a "fake" asphalt repairman who collected payments for asphalt and then sprayed consumer's driveways with something else. Do your research and make sure the person is legit before offering them any sort of payment.

If you live in the East Lansing or Greater Lansing areas and need referrals for contractors and home improvement professionals, feel free to contact me at MyRealtorRob. As an East Lansing realtor, I work daily with a variety of reputable property contractors and am more than happy to offer you their information. I can also assist you in the sale or purchase of a new home in the Greater Lansing area.

Read more on MSN's "From Sleazy Contractors to Bedbugs: Homowner Scams on the Rise."