Savvy consumers keep their scam guards up
Michelle Davis - 2024 NETAR President
Scams have always shadowed the real estate markets, but it seems they have increased. Everywhere you turn, it seems like there’s a story about a lawsuit or complaints over broken promises or shoddy workmanship.
The most recent high-profile case centers on a former Tri-Cities contractor – Wood Construction and Remodeling. The firm’s owner, Leighton “Joe” Wood, has admitted guilt and signed a plea agreement that says he must pay $1,194,930 in restitution to victims who say projects were not completed. He also could spend up to 10 months in jail.
The locals and others who had dealings with the firm can feel some sense of delivered justice, but whether they get some of their money back is another issue. Wood has filed for bankruptcy, and that means his victims face a new battle for restitution, according to a detailed series of stories by WJHL.
Some of the articles make for sad reading, but they are an education about the pitfalls homeowners 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 move 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. But there’ are also a lot of 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 of the contractor whose business address is a PO box or answering service. And deal only with licensed and insured contractors. License can be confirmed by city, county or 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 leftover materials from another job, 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.
Wood Construction had glowing reviews. But many of those reports and endorsements were done by company employees, or third parties paid to sweeten the firm’s online creds. Although the Internet can be a great source for research and information, it can be a chore to separate good information from scam fodder.
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 toolbox.
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