Home Improvement and Repair Scams

By on January 7, 2026

door to door salesman

By Deirdre van Dyk, for AARP

Avoid fraud with careful research and knowing the 9 warning signs that a contractor might be a scammer

If you are a homeowner, you may have experienced someone showing up at your door offering to do work for you. They might say they happened to be driving by and noticed a problem with your roof.

If you agree to let them take a look, they might say it’s an emergency and needs to be fixed immediately. “They take their tools up to the attic or crawl space under your roof and bang their hammers around…but [don’t really] do anything,” says Andy Apter, president of the National Association of the Remodeling Industry who also owns his own construction business in Annapolis, Maryland.

Then they’ll want to be paid in cash, of course.

Some home improvement scams are much more involved, however. The head of the National Association of Home Builders remodeling division, Alan Archuleta, who is also president of Archuleta Builders in Morristown, New Jersey, says at least three homeowners in his area have been victims of such scams in recent years. They may be seeking bids for a big project, such as an addition or a major renovation, and a contractor will “come in at a number that is very appealing.”

Then the contractor will offer to take another 5 percent off the price if they’re paid in cash. Sometimes they’ll stall, running into supposedly unforeseen problems and delays that will require even more of your money. (The Perfect Scam podcast details the experience of a Wisconsin homeowner whose contractor disappeared with a large deposit, after many delays and headaches.)

9 warning signs of a home improvement scam

Be wary if a contractor:

  • Demands cash payment up front
  • Shows up uninvited
  • Can start immediately
  • Says they are working nearby and have leftover material
  • Has no truck or uses a rented truck
  • Pressures you to hire them immediately
  • Doesn’t provide a written agreement or contract
  • Appears after natural disasters
  • Offers financing

Find a reliable contractor by:

  • Asking for referrals
  • Reviewing references
  • Viewing photos of previous work
  • Checking online reviews
  • Verifying licensing
  • Getting multiple bids
  • Carefully reading the work contract

Make sure that:

  • The deposit is no more than 1/3 of the total cost
  • You get all changes in writing
  • Keep detailed records of the project
  • Inspect finished work

If you’ve been the target of a home improvement scam

  • Contact your state’s consumer protection agency to report home improvement fraud.
  • File a complaint with the BBB if you’ve been scammed or poorly served by a contractor.
  • Call the free, 877-908-3360, to speak with trained fraud specialists who can provide support and guidance on what to do next and how to avoid scams in the future. The AARP Fraud Watch Network also offers online group support sessions.

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