A third of homeowners report renovation scams: survey
October 3, 2023 By Bidmii
A new survey conducted by Bidmii, an online contracting service, highlights a disturbing reality plaguing the home renovation industry in Ontario. A staggering 32 percent of homeowners admit to being victims of renovation scams, while almost half (49.5%) know someone who has been scammed.
Almost a quarter (20.1%) of homeowners discovered their fraudulent contractor through online searches, with nine percent realizing that they were scammed when the hired contractors never showed up for the job. When considering the outcomes, the survey found that a quarter (23%) of those scammed did not report the incident to the police while 21 percent of respondents faced threats or intimidation by the contractors in question. Beyond the financial impact, only 16 percent reported no financial loss when faced with a scam, while almost half (42.5%) of those who experienced contractor fraud also experienced a significant impact on their mental health.
“It’s crucial to realize that these trends we’re seeing are not just a passing phase. As credit markets tighten and contractor cash flows face increasing restrictions, we anticipate these challenges to not only persist but escalate,” said Jon Christensen, CEO of Bidmii. “The outcomes of this survey underscore the dire need for platforms like Bidmii, designed to infuse transparency, security, and trust into the home renovation industry.”
The final takeaway from the survey is that the public is not optimistic about the industry overall, with only 15 percent (15%) believing that enough is being done to prevent home renovation scams. This low level of confidence underscores the urgent need for actionable reforms in the industry.
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