Housing market heats us, so do the scams

Wayne Porter 

Summer is here and the housing market has heated up. But unfortunately, so have real estate scams. Everywhere you turn, it seems like there’s a story about a lawsuit or complaints over broken promises or shoddy workmanship or rental frauds.  

WAYNE PORTER
NETAR President

The articles make for sad reading, but they are an education about the pitfalls consumers can fall victim to if they are not careful. 

Contractor complaints and disputes are common, and they are increasing with the number of new owners eager to upgrade their older homes in a housing market where options to scale down or moving up have become expensive and limited. And there are the new residents looking to add a room or renovate a basement to move their newly gained Tri-Cities area homes closer to their dream home.  

There’s no argument that there are trustworthy and highly skilled contractors who do first-class work in our area. They are a resource to be cherished. But there are also scammers who make big promises, then overcharge for substandard work or take the deposit and vanish.   

There are tried and proven ways to avoid scams and limit some of the most common home improvement complaints.  

The first is to avoid using anyone who doesn’t have an office. Beware the contractor whose business address is a PO box or answering service. And deal only with licensed and insured contractors. Licenses can be confirmed by city, county of state officials. And up-front contractors won’t mind if they are asked for proof of insurance. 

Consumers should also arm themselves with some basics about things like the legal amount for downpayments and deposits. 

Anytime a contractor makes a cold call and offers to do discounted work because they’re already on a job in the area, or offers a good deal because they have left-over, it’s a scam red flag.  

It’s also a good idea to check online and with consumer protection services to see if a company or an individual has complaints against them. But be careful with online research – especially reviews.  

Experts also say it’s important to get multiple bids and to carefully read the contracts because verbal agreements are frequently worth nothing more than the paper they aren’t written on. 

Finally, don’t rush into a project. And be especially wary if a contractor suggested a lending source. Never sign off on work that you are not satisfied with. 

The National Association of Realtors® (NAR) offers a consumer service with materials and tips worth checking out before launching into dealings with contractors. You can find Houselogic at www.houselogic.com to review insight articles on topics like “the most common scams and how to avoid them, secrets contractors don’t want you to know or essential questions to ask before hiring a contractor.” The site is a virtual Consumer Safety tool box. 

NETAR is the voice for real estate in Northeast Tennessee. It is the largest trade association in the Northeast Tennessee, Southwest Virginia region, representing over 1,800+ members and 100+ business partners involved in all aspects of the residential and commercial real estate industries. Weekly market reports and information for both consumers and members are available on the NETAR website at https://netar.us