If you’re on the move from one home to another, here’s how to spot trouble

America used to be a nation of nomads. In the 1960s, about 20% of Americans packed up and moved every year. But by 2024, that number had dropped to 11%, according to U.S. Census Bureau data analyzed by real estate company Point2Homes.

What hasn’t changed, however, is that people who move still need help with the heavy stuff. For many, that means hiring professional movers.

Nationwide, there are an estimated 17,000 household moving companies. Many of them are great — but there are also plenty of rotten apples.

Complaints against moving companies are among the most frequently fielded by local consumer agencies. Some customers make the mistake of eagerly accepting a lowball estimate, only to have their goods held for ransom later. Others pay their movers too much in advance, or even sign blank contracts.

But the biggest mistake consumers make is not verifying that the movers they are considering are legitimate.

That should be the first thing everyone does, says Ron Harper, a paralegal in Cambridge, Ontario. Movers should be forthcoming with their license numbers and insurance information. If they don’t, that’s an “automatic disqualifier,” he advises.

One Florida resident reportedly hired a local mover without bothering to determine if the company was licensed, only to run into a boatload of trouble. The mover arrived late, damaged the customer’s property and then wanted an additional $1,300 to unload the truck. In another instance, an investor lost a $2,000 deposit to a “moving broker” who disappeared before the family was ready to move.

MORE: Investigation of a Broward mover found fraud, extortion and forgery, state says

Even if a company readily provides its official documentation, you should still check it out. For local movers, check with your state’s consumer affairs agency. For long-distance movers, make sure they are registered with the Federal Motor Carrier Safety Administration. It’s a “huge red flag” if they are not listed, says Riggs Powell, who operates a moving and storage company in Utah.

While you’re at it, look into their complaint records. Locally, check with the Better Business Bureau or your consumer affairs agency. On the national level, try the Federal Trade Commission and the FMCSA.

Of course, you also should look at the company’s online reviews. Dissatisfied customers are not shy about voicing their displeasure, so “scour the internet” for complaints, advises law professor Danny Karon.

Next, always request bids from more than one company. Beware of low bids, estimates made over the phone or verbal quotes. Ideally, “at least three separate companies (would) send a representative to your home to provide a detailed written estimate,” says Harper.

The estimate is the basis for your contract, so it should include all the services the mover will provide, plus their costs: the weight or size of the load, packing services, mileage, timing, appliance services and stair navigation. For long-distance moves, Powell recommends asking for a binding estimate so “the price won’t jump once your stuff is on the truck.”

When you receive a contract, read it and make an effort to understand what it says. “It’s taxing,” admits Karon, but it’s necessary. “You’ll likely find things you don’t like, such as forced arbitration and liability waivers, neither or which favors you.”

“Read every word, and don’t rush,” Powell advises. “Ask the mover to walk you through any confusing sections. If he won’t take the time to explain something, that’s a sign to walk away.”

Try to negotiate out the clauses that you’re uncomfortable with. If you can’t, go elsewhere, Karon advises — or accept that “at least you’ll know the consequences if things go badly.”

Harper says the contract should clearly state the mover’s liability for your belongings, pickup and delivery dates and all payment terms. If the contract is not consistent with the estimate, he warns, don’t sign it until you are told why — in writing. “The only defense is vigilance,” agrees Florida attorney Thomas Fighter.

Watch in particularly for weight estimate discrepancies, suggests Derek Mills of Texas-based moving company Square Cow. “If a company refuses to provide a contract or uses excessive industry jargon to confuse you, walk away.”

Also avoid movers who want a large down payment — in cash. “Low bids often indicate potential problems later,” warns Mills.

Fighter says he has had clients lose thousands to companies they only checked out online. In one case, the family paid half in advance, only to have the company disappear the very next day.

One big sign that a mover is trouble is that it only accepts cash or requires large deposits upfront.

“It may be acceptable to pay a small deposit,” advises Harper, but most reputable movers are adequately funded and do not need your money to operate.

So don’t ante up more than 25% at most, the experts advise, and do so with a credit card for further protection.

Lew Sichelman has been covering real estate for more than 50 years. He is a regular contributor to numerous shelter magazines and housing and housing-finance industry publications. Readers can contact him at lsichelman@aol.com.