You are about to see them all. Learn these seven red flags now, and you will spot every one of them before a single dollar changes hands.
Red Flag 1: Demanding Large Upfront Payments
The script: "I need 50 percent upfront for materials. Or actually, let us just do the full amount now and I will get started Monday."
What is really happening: Legitimate contractors ask for 10 to 33 percent down. Established companies have supplier credit accounts; they do not need your cash to buy shingles or lumber. Anyone demanding half or more before lifting a hammer is either financially insolvent or planning to disappear. There is no third option. Walk away.
Red Flag 2: Cash Only, No Paper Trail
The script: "I will knock 15 percent off if you pay cash."
What is really happening: Cash cannot be traced, disputed, or refunded. It is also, in most cases, tax evasion, which tells you exactly how this person runs a business. Legitimate contractors accept checks, cards, and bank transfers because legitimate businesses keep records. A cash-only operation is not giving you a deal. It is removing your only recourse. Walk away.
Red Flag 3: "Licensing Is Just Government Red Tape"
The script: "I have been doing this twenty years, I do not need some piece of paper."
What is really happening: Read our full breakdown of what you lose with unlicensed contractors, but the short version is brutal: no surety bond to claim against, no licensing board to complain to, and your homeowners insurance may refuse to cover their work entirely. Twenty years of experience without a license means twenty years of avoiding accountability. Walk away.
Red Flag 4: High-Pressure "Today Only" Tactics
The script: "This price expires when I walk out that door. I have another job starting tomorrow and I need your answer now."
What is really happening: Reputable contractors are booked weeks out. They do not need to pressure anyone, because their calendar is full of people who already said yes. Manufactured urgency exists for one reason: to stop you from getting competing quotes and checking their license. A real professional will happily let you think it over. Walk away.
Red Flag 5: The Door-Knocking Storm Chaser
The script: "We are working in the neighborhood after the storm. Free roof inspection, no obligation!"
What is really happening: Out-of-state crews track hail maps like stock tickers. They knock on doors, "find" damage whether it exists or not, collect your deposit or your insurance check, and vanish before the first rain. Real local roofing companies have more work than they can handle after a storm. They do not need to canvas your street. If you need post-storm repairs, you call an established local company. Never the reverse.
Red Flag 6: The Bid That Is 40 Percent Lower Than Everyone Else
The script: No script needed. Just a number so low it feels like winning the lottery.
What is really happening: It is bait. The price doubles through "unforeseen" change orders once demolition starts, or corners get cut where you cannot see them: no underlayment under the shingles, unpermitted electrical work, day-labor crews with no supervision. Get at least three quotes. Legitimate bids for the same scope cluster within 15 to 20 percent of each other. The outlier is not a bargain. It is a trap.
Red Flag 7: No Written Contract ("Handshake Deal")
The script: "We do not need all that paperwork. My word is good."
What is really happening: Without a written contract specifying scope, materials, timeline, payment schedule, and warranty terms, you have essentially no recourse when disagreements arise. And disagreements always arise. Even a $500 job deserves a one-page written agreement. A contractor who resists putting things in writing is telling you they plan to be flexible about what they promised.
What to Do If You Have Already Been Targeted
Do not feel embarrassed. These operators are professionals at manipulation. Act fast:
- Stop all payments immediately. Call your bank about stopping checks or disputing credit card charges. Time matters.
- Document everything. Save contracts, text messages, emails, and photos of the work (or the lack of it). Screenshot everything before anyone deletes anything.
- File complaints with your state contractor licensing board and your attorney general's consumer protection division. Both track patterns.
- Report it to the FTC at reportfraud.ftc.gov and file a police report. A paper trail helps the next victim too.
- If they were licensed, file a claim against their surety bond. This is literally what the bond exists for, and most homeowners never use it.
- Talk to a consumer protection attorney. Many offer free consultations for fraud cases, and some take them on contingency.
The Best Defense Is a Good Offense
Scammers prey on haste and trust. Slow down and verify: follow our 12-step vetting checklist before hiring anyone, and start your search with reviewed, verified contractors instead of whoever happens to knock on your door.