University of Wisconsin - Extension

This winter's ice damage on many homes has many homeowners in the market for home repairs. But it's a good idea to shop around and ask questions before agreeing to any home repair work, according to a University of Wisconsin-Extension housing specialist.

"Home repair complaints are one of the top concerns registered with the state's Department of Consumer Protection," says John Merrill. "Most repair contractors are honest and professional in the service they deliver. However, some repair contractors may not do work that is of the highest quality. Other businesses may be outright scams."

Merrill says to be especially careful of anyone who comes to your door. A common scam is for a business to say they are in the neighborhood doing work, so they can give you a discounted rate.

"It can take all your time and energy to maintain your home. When someone comes along offering to do a job that you need, it can be very tempting to take them up on their offer. But if it looks too good to be true, it probably is," Merrill says.

If someone comes to your door, don't accept their offer on the spot. Ask them to leave materials, including their phone number and business address. Merrill says legitimate operations always have a permanent address and phone number. You also can contact the Department of Consumer Protection at 800-422-7128 to check whether the business is legitimate. You also can call Consumer Protection for free booklets on avoiding home repair problems.

"Never pay in advance. If you do, the company has no incentive to finish the job," Merrill says.

He says a new kind of fraud involves contractors who offer to arrange financing for your home repair projects. If you just sign a few papers, they offer to take care of everything. They may say you can spread payments over several years, with very little up-front. However, some of the papers you sign are for a mortgage against your home.

These loans usually involve extremely high-interest loans, often with large balloon payments at the end. Even worse, the loan money is usually paid directly to the contractor even before the work is done, so the contractor has no incentive to complete the work.

If you need financing for a repair job, check with your own bank or regular lender, Merrill

advises. They can offer a more reasonable rate of interest, and a home equity loan or line of credit gives you the money, so you can delay payment to the contractor until the work is completed.

Merrill says if you are considering a home repair job of $1,000 or more, it is worth getting bids from several different sources, then checking their references.

If you need repairs because of damage from ice dams, be sure to first check with your home owners insurance agent. He or she may be able to recommend contractors, as well as help with the cost.

For other projects, ask neighbors and friends who have had work done in the past. If you don't know anyone who has had a similar job done recently, you may be able to check with a local hardware store, paint store, utility company or even your insurance company to get names of contractors they have worked with in the past.