[Home Tips] Contractor Ghosting? 5 Steps to Protect Your Home and Wallet
Renovating your kitchen or fixing your roof is a massive investment. While most contractors are hardworking pros, the "Bad Contractor" horror story is a reality for many homeowners in the US and Canada. According to the Better Business Bureau (BBB) , home improvement scams are consistently among the top riskiest scams reported by consumers. Before you start your project, here is how to spot a "Con-tractor" before they disappear with your deposit. 1. The "10% Rule" for Deposits In many areas, it is considered a major red flag if a contractor asks for too much money upfront. The Reality: For example, in California , the legal limit for a down payment is 10% of the total project price or $1,000, whichever is less . The Solution: If a contractor demands 50% "to buy materials" before they even drop off a shovel, think twice. Stick to a "Milestone Payment" schedule where you pay as specific parts of the job are completed. 2. Verify "...