Home Repair Rip-Offs: Don't Get Scammed!

Do you check references before hiring a contractor? Do you research the cost of materials? Most people don't.

We took our hidden cameras out to investigate just how susceptible people are to these common scams. Take a look...

Top Home Repair Rip-Offs:

#1) Scare Tactic

Contractors want to freak you out about the safety of your home. The more unsafe you feel, the more likely you are to pay for fixes. If you have kids, they will remind you about the safety of your children.

#2) Inflated Prices

John Desilvia, a licensed contractor and host of DIY Network's "Rescue My Renovation," says one of the biggest scams is giving people a false quote on the cost of materials.

#3) Payment Upfront

Contractors will require a down payment in order to start the job. Don't fall for this! If they ask for 50% in advance, run!

Back in the studio, was John surprised he fooled so many people? Not at all! He said the average homeowner is too trustworthy.

What are the biggest mistakes homeowners are making when hiring a contractor? Licensed Contractor Mel Orellana says people don't negotiate and they don't buy the materials themselves. You can save a lot of money by going to a hardware store yourself!

The Top 3 Things You Need To Know Before Hiring Your Next Contractor:

1. Talk to Past Clients
You want to see work they have done. If they don't have anyone to show you, they are not trustworthy. Go to a home they're working on, see that they have a real crew and can make the home updates you want happen.

2. Never Pay in Cash
You don't protect yourself if you pay in cash.

3. Get a Second, Third, Fourth Opinion!
Ask as many questions. Don't feel stupid! Educate yourself to protect yourself.