One in three American homeowners have fallen victim to a home renovation scam — losing an average of $12,434 in the process, according to new research.
A new study examining the home projects experiences of 2,000 homeowners found the experience of projects going awry is surprisingly common.
Seventy percent of homeowners surveyed have had renovations done — and of those, 51 percent have fallen victim to scams.
Results revealed a variety of issues, with the most common being the work taking longer than expected (45 percent), having the project unexpectedly go over budget (33 percent) and receiving work below the quality expected (31 percent).
The number one exterior home project scam was found to be roofs, while the top interior scam was kitchens, according to the survey.
Fifty-two percent of those who’ve had a renovation done said workers showed up late or left early, while 47 percent were left with messes in their home.
And a third (32 percent) say workers were rude or unprofessional.
Conducted by OnePoll on behalf of Owens Corning Roofing in advance of National Consumer Protection Week, the survey of 2,000 homeowners examined the common home renovation scams and Americans’ thoughts on contractors.
In addition to the money lost, 62 percent of homeowners currently have unfinished home renovation projects as a result of scams.
When looking for a contractor, homeowners spend an average of 4 hours and 42 minutes conducting interviews, reading online reviews and checking licensing before they hire someone.
They’re most likely to find a contractor through recommendations by friends or family (63 percent), recommendations from neighbors (51 percent) or hire someone they know personally (44 percent).
And while respondents’ trust in contractors is low, they’re more likely to trust a contractor when they come highly recommended (60 percent), if it’s someone they know personally (51 percent) or knowing they were supported by a national manufacturer (45 percent).
“We were surprised to see that roofs came in as the number one exterior home project scam — reported by 47 percent of homeowners,” said Jason Lewinski, the Contractor Marketing Leader at Owens Corning.
“That’s why it’s so important for us to educate consumers on the value of using a trusted, licensed contractor, especially one that’s supported by a national manufacturer like Owens Corning who checks its contractors on an annual basis.”
Forty-six percent have even postponed a home renovation project because they didn’t want to deal with the hassle of finding and hiring a contractor.
Most common issues when working with a contractor
| Work took longer than expected | 45% |
| Project unexpectedly went over budget | 33% |
| Received work below the quality expected | 31% |
| Overcharged for the work | 30% |
| Contractor repeatedly raised the price | 26% |