I Got Ripped Off by My Contractor: How Can I Avoid Being Overcharged Again?

  When my husband and I were in the process of finishing our basement, we knew we couldn’t handle it ourselves. I’m not very handy and we both have busy jobs that take up a lot of our time. So…

Published April 10, 2025, 6:33am ET · 3 min read

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When my husband and I were in the process of finishing our basement, we knew we couldn’t handle it ourselves. I’m not very handy and we both have busy jobs that take up a lot of our time. So we decided to largely outsource the job to a contractor.

In the course of seeking out the right person, we received numerous quotes. And the range was pretty astounding.

One contractor quoted us $50,000 for a basement remodel. Another said they could do the job for $20,000.

When you have such a large range like that, it can be hard to know what to do. And that’s the situation this Reddit poster is in.

They’re looking to do a home remodel and have received a wide range of quotes. They don’t necessarily want to go with the most expensive option, but they also don’t want to cut corners and choose the cheapest option off the bat.

They’re wondering how to find the right person for the job without getting ripped off. And that’s not an easy thing. But here are some steps they can take.

Make sure you’re comparing apples to apples

When we got our basement quotes, we were surprised by how much they varied in cost. But we also realized there was a reason for that.

The $20,000 quote did not include a number of key features that we wanted, including a nicer shower for the bathroom we were building or the flooring we preferred. It also did not include paint. That would’ve been a separate expense, or work we would’ve needed to do ourselves.

The $50,000 quote, on the other hand, offered all high-end features, some of which weren’t necessary for us.

At the end of the day, we settled on a middle-ground quote. We felt comfortable that we were getting what we wanted and weren’t settling, but also weren’t cutting corners.

If you’re getting multiple contractor quotes, compare what each person is giving you. You may find there’s a reason one quote is much higher or lower than the others.

Get references

Getting ripped off by a contractor is a homeowner’s worst nightmare. Because this was a huge project we were undertaking, we asked each contractor we talked to for references.

We not only looked at pictures of their work, but we called homeowners who had used them before to ask about the experience.

The contractor we wound up choosing had rave reviews. Everyone we spoke to said the same thing — that he wasn’t the cheapest, but he did quality work and was very communicative throughout the process. These things were important to us, which ultimately helped us make our choice.

Do your research before signing a contract

Even if you read your quote thoroughly and get references, it’s important to vet your contractor beyond that. A good idea is to ask for their license number and make sure they’re bonded and insured. You can also try to see if they have a rating on the Better Business Bureau.

Years back, we were going to use a company to install our deck but its BBB rating was horrible. We were glad we went a different direction. The original company we looked at was out of business a few months later. We would’ve been left in the lurch had an issue arisen right after the work was done.

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Maurie Backman

Maurie Backman has more than a decade of experience writing about financial topics, including retirement, investing, Social Security, and real estate. Her work has appeared on sites that include The Motley Fool, USA Today, U.S. News & World Report, and Kiplinger.

Prior to becoming a full-time financial writer, Maurie worked in the financial industry trading distressed debt. She then changed course and spent a few years designing electronic toys. After a stint in content marketing and UX, she shifted back into writing and has since covered everything from the housing market to estate planning to Medicare.

When she's not busy writing, Maurie can be found hiking, walking her dogs, driving her kids to their various sports practices and games, and curling up with a good book. She cooks on occasion and bakes way too often.

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