Home Warranties: Are They Too Good To Be True?

By Donald Lawson

What is a ‘Home Warranty?’

A home warranty is like an insurance policy. In fact, in some states the Insurance Commission may even regulate them. I know in Texas, the Real Estate Commission regulates these companies.

Basically as a homeowner you pay a company a few hundred dollars a year to cover the major appliances and components of your home. If something should go wrong, you call them up and they send a technician out to size up the situation and tell you if you’re covered or not.

Is this too good to be true?

Problems for some consumers usually arise when they have a claim. They may have paid their dues each and every year and believed everything in their home was covered. Then one day in August the A/C goes out and they call the Home Warranty Company who sends a tech out to look at the A/C. "Yep" he says "Your A/C equipment is shot, you're going need a new one." "Good thing I have this warranty" you think. You may soon find out that your warranty will not cover a new A/C because you failed to have it "serviced" each year or because the service tech says the reason it went out was because of a "Pre-existing" condition.

I've seen claims denied for very questionable reasons. Stop and think about it, if they can deny a claim, then that's money in their pocket. Someplace in that fine print I keep telling you to read there is a whole bunch of "we won't warranty it ‘if's’." The Technician who comes to your home may be the one who'll decide whether or not the work will be covered by the warranty. In some instances, these third party contractors who are hired by the warranty companies do not make as much on repairs and replacements on a claim as if you just called them up out of the phonebook. It pays to get several opinions before making a decision.

Here are a few reasons I’ve seen Home Warranty Companies deny claims

· Lack of regular maintenance

· Pre-Existing conditions

· Questionable ‘Code’ issues

· Components not installed per the manufacturers installation instructions

The best way to protect yourself if you plan on purchasing one of these policies is to call the Company and ask them which service provider they use in your area. Then call that service provider and schedule an inspection with them to come out and look at the systems and components in your home to ensure the Home Warranty Policy will cover it. Get it in writing if they says everything will be covered.

You also want to make sure what the Home Warranty will cover and what it doesn't. I've never seen a policy with blanket coverage so don't assume it will 'cover everything in the home' like some real estate agents tell you. Read the fine print!

What are my options if my warranty company denies my claim?

I'm betting that most states regulate these companies some how. Check with your states Attorney Generals Office. They should have all the information you need. You may even be able to file a complaint with the AG's office of your state if you've had a denial of a claim in which you feel is legitimate.

Good Luck and read the fine print on those contracts!

Donald Lawson is a Professional Real Estate Inspector licensed in Texas (#5824) and Oklahoma (#454). He currently owns and operates V.I.P. Home Inspections, a multi-inspector firm in Houston Texas. You can find out more about home warranty's on his website at http://www.best2inspect.com

Article Source: http://EzineArticles.com/

Doghouse to Dollhouse for Dollars College Seminar

The college sent out the course catalog late. This left little time for readers to sign up to the class. However, the college just called to say the class is NOT cancelled because people have signed up today.

Doghouse to Dollhouse for Dollars College Seminar
Mt San Jacinto College, Menifee campus.
Saturday Aug 20, 9:00 AM to 1:00 PM
$49 Call the college to register. Limited enrollment
(951) 487-6752 ext. 1700, 1701 or 1702

Doghouse to Dollhouse for Dollars book cover

I don't know why the graphic artist changed the orignial cover design for the last print. He decided to add the work "by" infront of my name and no one caught that. Also, the fuzzy edges on the pictures look all right on the book when you see the cover full size. However, the fuzz looks terrible online!

Look at the cover on Amazon. How did they make the snappy apple green background look like dog-poop brown? I wonder how long it will take to get Amazon to upload the new book cover. And, what color will it be?

 

Third Print of "Doghouse to Dollhouse for Dollars"

Amazon just ordered my last books. Wierd how they ordered the last ten--just the number we had left! This was after they ordered a huge shipment last week. I wish they would order more books at one time instead of every day or two.

We sent the file to the publisher today for the updated book. Don't worry if you already bought the book. The content is the same. The new book just has better writing. After writing four more books, my writing improved.

Anyway, there is something that should have been added to Dollhouse that only is in "Sell Your Home for Top Dollar--Fast." I couldn't convince the publisher to add it to the Dollhouse book or Workbook because they want the books to be different. However, I retain the rights to write articles and reports. So if you want the missing information, which helps you sell your dollhouse, email me. If you purchased from Amazon, I won't have your receipt. Just tell me what you liked about the book that proves you read it.

http://doghousetodollhousefordollars.com

New "Doghouse to Dollhouse for Dollars" back cover text

Real Estate/Investing

Prosper in Every Real Estate Market

Gain wealth and financial freedom with a unique approach to flipping houses for profit. Most real estate investment strategies limit their profit potential by a "paint & go' approach. Learn to use Design Psychology to transform and sell a house for maximum profit and to finance an investment portfolio worth millions.

Whether you're a beginning or experienced investor, you know the benefits of flipping houses: you work for yourself, set your own hours, take time off between projects, and hope to make some good money. This book leads the way to maximum profit and financial power.

Rise above market trends to create an abundant financial future with Design Psychology

Discover how to:
Find real estate bargains in a saturated market
Finance multiple properties with improved credit
Transform properties to appeal to buyers’ emotions
Market your house to attract top-dollar offers
Create an investment portfolio worth millions


"I wish I had Jeanette's book years ago. I could have made billions instead of millions!" Jackie B., Investor, Newport Beach, CA

'Many investors fix up houses for profit, but not like Jeanette!'
April Strickland, Southern California Realtor

Jeanette Fisher is the author of Sell Your Home for Top Dollar—FAST! Design Psychology for Redesign and Home Staging, and Credit Help! Get the Credit You Need to Buy Real Estate. She has flipped over thirty houses using Design Psychology.


ISBN/price

copyright 2005 Jeanette J. Fisher

Doghouse to Dollhouse for Dollars College Seminar

Real estate bubble?
No matter what the market does, you can still flourish in the
real estate business with fixers.

Discover how to make top dollar investing in real estate.
Spend four fascinating hours with Interior Design Psychology
expert Jeanette Fisher and learn how to:

1. Find bargain houses in Southern California
2. Finance without owner-financing
3. Fix up doghouses and create magical dollhouses
4. Use home staging strategies that buyers wait in line to
bid on
5. Market your property with advertising psychology

This one-of-a kind real estate system comes to you in two
ways:

1. Doghouse to Dollhouse for Dollars College Seminar
Mt San Jacinto College, Menifee campus.
Saturday Aug 20, 9:00 AM to 1:00 PM
$49 Call the college to register. Limited enrollment
(951) 487-6752 ext. 1700, 1701 or 1702

2. If you can't make the Doghouse to Dollhouse for Dollars
college course, sign up for the Teleclass (conference call):
Real Estate Investing Teleclass: Fixing and Flipping
Houses
Mondays: September 5, 12, and 19 5:00 PM Pacific

Discover how to find, finance, fix, stage, and sell for top
dollar.
Learn how to make a fortune flipping houses or hold for your
future.
Explore new real estate investing strategies.
You're guaranteed to learn new ways to invest in real estate.

The secret to top-dollar sales is in the planning and
redesign to make prospective buyers feel like they must
pay you more because they can't live another day without
your home. If you're already flipping houses for extra
income, you'll love the interior design ideas for making more
money.

Forget the typical "clean it up" and "paint it white" advice.

This teleclass helps you:

1. Find bargains in a crowded investor market
2. Finance fixers when banks want to pass
3. Fix houses using Interior Design Psychology
4. Use Home Staging strategies
5. Market for top-dollar selling.

Included with teleclass
• Email Support from Jeanette
• Extra reports not available in the book
• Private Group Discussion Forum, share ideas and learn
from others interested in real estate investing

Class size limited so each participant gets the same results
as those taking the college course.

How much is your future worth to you? $150. Guaranteed
Satisfaction.

Yes! I want to get started today creating wealth by real
estate investing!

More information about Jeanette's books
Doghouse to Dollhouse for Dollars Book Site

Joy to you!

Jeanette Fisher, Design Psychology professor
Joy to the Home
18475 Grand Ave., Lake Elsinore, CA 92530
(951) 678-8780

Beware of "Subject To" Promises

Another real estate writer's mini course, full of promises and fluff, ended with a "lesson" on why you need to buy his book so you can finance multiple properties "subject to." The reason, he said, "because banks won't let you finance more than ten mortgages."

This simply isn't true.

First, banks let you finance as many mortgages as you can pay for. Some banks limit the number of loans made to one person. Experienced real estate investors just move on to another lending institution.

I know one investor who owns more than one hundred single family homes. All have mortgages. He constantly refinances one for the down payment to buy the next. Besides living off the cash flow from his rentals, he also refinances one rental occasionally to take his family on a first-class vacation.

Another investor, my friend who owns the carpet company we use for our fixers, owns more than fifty rentals. None were purchased "subject to" the existing loan. Many were purchased "all cash" for quick closings, with mortgages added later.

For beginning real estate investors, looking for an owner willing to sell their property "subject to" the existing loan adds a frustrating component to the search for a profitable property. Today's savvy home sellers just won't sell to a buyer who can't cash them out.

Of course, some investors offer "subject to" and lease options purchases. But, properties with most of the equity stripped out come with payments too high for the rental income to support.

Beware of "subject to" promotions. This real estate investing method worked last century, not today.

Copyright (c) 2005 Jeanette J. Fisher. All Rights Reserved.

Jeanette Fisher teaches real estate investing and credit college courses. She became a credit expert to help her real estate students buy their dream home and multiple investment properties. Jeanette is the author of "Credit Help! Get the Credit You Need to Buy Real Estate" and other books. For a free report, "Credit Tips for Mortgage Financing," visit the Real Estate Credit Help Center http://recredithelp.com