NOTE: This article is part of the forthcoming book, the Gotcha Guide™ to Buying or Investing in Real Estate. by DeeinAustin™
I was elated to see the Home Warranty of America (HWA) announcement of their GreenPlus Program earlier this year.
GreenPlus is an upgrade to HWA's 13-month contract, which covers appliance and mechanical systems. GreenPlus makes Energy Star exchanges, replaces your water heater with a tankless version, and upgrades your heating system to 90% efficiency upon disrepair.
This is especially useful in Green cities like in Austin, where our mayor is preparing to roll out a Climate Protection Plan, requiring all Austin home owners to make green upgrades before they can sell their home.
The Dark Downside of Home Service Contracts
Like all good things, there's a downside. Here are the Top 5 Complaints I hear about home service contracts:
- The repair companies try to avoid paying for a full replacement.
- The contractors are sometimes rude to you and/or your tenants. They're not trained in customer service.
- Like most insurance, costs increase each year, including the annual fee and deductible.
- If nothing breaks, you may feel you wasted money.
- Unlike the insurance industry, this one is not regulated with strict guidelines.
Gotcha Guide™ Tips for Home Service Contracts
Service contracts are not just for buyers. The best time to buy a service contract is during a home sale. Sellers can negotiate to pay for a home warranty for the new buyer or buy coverage during the sale period to later transfer it to the new owner.
Best Bets: Read your contract carefully to understand repair criteria and how many repairs warrant a replacement.
Also, get referrals from friends, real estate professionals, and co-workers in your area. Both my friends and I have had negative experiences with American Homeshield and First American. Service Magic was also rough, but I haven't used them for years.
I've heard nothing but positive reviews for HWA so far.
WANT TO SAVE MORE GREEN? READ THESE RESOURCES
- 5 Quick and Easy Green Building and Remodeling Fixes.
- Austin Mayor Will Wynn's Climate Protection Plan, along with an Update.
- Texas Lawmakers Boost Green Building.
- Read more about Home Warranty of America (HWA) coverage.
- Why Home Warranties Suck.
- Use Automated Feedback to Sell Faster, for More $$!
All Rights Reserved, Copyright 2008 © Dee Copeland
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