A report reveals that 33% of homeowners would choose a 'doubtful' contractor to cut costs.

• A recent report by Clever Real Estate reveals that approximately 33% of surveyed homeowners would consider employing a contractor with a questionable reputation in order to save money.
• According to report author Jamie Dunaway-Seale, a questionable contractor is someone who may not be entirely truthful about the cost, may overstate their abilities, may not deliver high-quality work, or may fail to appear for the project.
• But that decision may come with risks, experts say.

One in three homeowners is willing to hire a contractor with a flawed resume to save money on home repairs and renovations.

A report by Clever Real Estate reveals that approximately 33% of surveyed homeowners would consider hiring a contractor with a questionable reputation in order to save money, despite the potential risks involved.

According to a poll conducted by Clever in mid-August, 25% of U.S. homeowners consider reputation to be the most important factor when choosing a contractor for renovations, while 23% prioritize experience, 19% focus on cost, 13% rely on personal recommendations, 11% look for availability, and 10% are concerned about the estimated project timeline.

Experts warn that choosing a questionable contractor could result in higher costs in the long run, as they may not be truthful about their prices, overestimate their abilities, produce subpar work, or fail to show up for the project, according to Jamie Dunaway-Seale, author of the Clever report.

"Angie Hicks, co-founder of Angi, advised avoiding someone with a questionable reputation in the industry and opting for a newer contractor."

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Loretta Worters, a spokeswoman for the Insurance Information Institute, stated that the likelihood of contractor fraud increases following a natural disaster.

These individuals often promise to help you but end up taking your money and failing to deliver, according to Worters.

On Wednesday, the Justice Department and the Consumer Financial Protection Bureau issued a warning to consumers about potential fraud, price gouging, and collusive schemes following natural disasters.

Hicks stated, "Avoid making a bad situation worse."

Here's what to consider when hiring a contractor.

Contractor fraud can fester after natural disasters

It is predicted by analysts that Hurricane Milton could be a rare storm with the potential to cause unprecedented damage when it hits Florida's west coast on Wednesday or early Thursday.

When dealing with multiple storm aftermaths, homeowners should consider carefully who to hire as a contractor.

Be cautious about contractor fraud, as you could be victimized twice - once by the storm and once by the fraudulent person, Worters advised.

After a hurricane, one of the most frequently sought-after trades to hire is roofing, according to Hicks.

"Hicks emphasized the importance of choosing a reputable local company for roofing work, stating that the warranty on the work is crucial for a roof that will last at least 20 years."

It's crucial to conduct thorough research and verify the qualifications of the candidate you're considering for the job, experts advise.

3 ways to vet a contractor before hiring them

Despite the general reliability of professional contractors, negative experiences can damage their reputation in consumers' minds, according to Clever's report.

Dunaway-Seale stated that many people have negative experiences, which makes it more challenging for the sincere ones.

Experts suggest that while it can be challenging to assess contractors, there are certain steps you can take to ensure you're collaborating with a trustworthy individual.

Here are three ways to get started:

1. Ask for reviews and references

Hicks advised checking the contractor's reputation first.

Seek advice from friends and family who have had positive experiences with a contractor in the past, advised Dunaway-Seale.

To verify the quality of a firm or professional, it is recommended to check their online reviews and ask for references, as experts suggest. As you gather estimates, it is important to verify the past performance of the firm or professional through their references.

Can you connect me with a previous client of yours, Dunaway-Seale?

""If they're not willing to do that, it could indicate that they don't believe anyone would recommend them positively," she stated."

2. Check their credentials

To determine if a contractor has the required experience to complete the job, it is necessary to check their credentials and licensing, as stated by Hicks.

According to the National Association of Home Builders, all professional contractors should be insured and provide proof of their insurance through a certificate. While not all states mandate licensing, contractors operating in states that do require a license should also present a copy of their license.

The FTC and CFPB provide resources for consumers on how to avoid scams, prepare for natural disasters, and manage finances during such events.

The state insurance department may publish a list of various contractors on their website, according to Worters.

3. Watch for warning signs

Gauging a contractor's behavior through initial interactions can aid in determining if you feel comfortable entrusting them with your business.

Hicks inquired about whether the estimates were provided in writing, if they were detailed, and if the payments were clearly outlined.

Hicks advised that upfront payments for larger projects should not exceed 10-20%, and that a large deposit should not be paid upfront.

It's a good idea to obtain two or three estimates to determine if there are any outliers in your pricing, according to Hicks.

"Probably, if a deal appears too good to be true, it is," she remarked.