Beware of Unscrupulous Contractors

Posted on November 22, 2007 |

This irritating phenomenon is nothing new, but it seems to be on the increase … I’m sure some of your clients have experienced it, whether they know it or not.It goes something like this: I phone my 12- month warranty company, or just an HVAC contractor, because my furnace is not lighting. After a cursory inspection, the contractor informs me that there are serious, even life-threatening, issues with my furnace; and it either needs to be replaced or undergo expensive repairs. Furthermore, the home inspection company should have caught this for me! I find out that my warranty company will not pay for this pre-existing condition. How could my inspector have missed this? I phone my real estate agent, who is my lifetime caregiver for my home and its myriad of ongoing issues, of course. My real estate agent is placed in a very difficult and sensitive position.

There are some extraneous issues, which I am both unaware of and failed to act on. Yes, my home inspection report did cite some issues regarding my furnace, which should have placed responsibility on myself to request a service call. If there were indeed some ‘serious issues’, the specialist could have found them during the negotiation period (whoops, I failed to act on this…who can I blame?).

Some of the HVAC contractors my home warranty company sends do not charge the warranty company for these ‘warranty calls’ (I was unaware of this … fill in the blanks how they make their money).

When you receive these phone calls, it is imperative that your clients receive a 2nd, and even 3rd opinion. Substitute HVAC contractor for any other profession in this scenario. One of our agents very recently had clients scared to death over reported carbon monoxide poisoning issues with their furnace; he wisely recommended they obtain a 2nd opinion, which they did; the first reports were ultimately revealed to be inaccurate.

Another recent situation involved a warranty HVAC contractor stating there was a heat exchanger crack. The agent wisely told the clients they should receive a 2nd opinion; and that a general inspection is not responsible for identifying everything that a specialist might identify. I believe they ignored the recommendation for a 2nd opinion, in hopes of having their 17 year-old furnace replaced by HomeTeam. Needless to say, we did not replace the furnace.

Over a year ago, a first-time homebuyer was told (by the warranty company HVAC contractor) their furnace needed to be replaced, as it was “rusted out”. Since this did not pass the smell test with my report, I met with the agent and warranty representative and requested access to the furnace, which had already been replaced. The warranty representative stated the furnace had been disposed of and was no longer accessible (how convenient!).

The free 90-day warranty we provide to all clients, through American Home Warranty Company, does not send their preferred contractors to a warranty call. Rather, they give the clients free reign to select a reputable company. I firmly believe that the majority of contractors are honest, however, there are times when a second opinion is a wise move.

Contributed by

Mike Faulconer

HOMETEAM Home Inspections

www.kansascity-homeinspections.com

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