Don't Get Left Out in the Cold

Bruss is away. These questions are taken from previous columns.

Q: DEAR BOB: About four months ago, we bought our first home. It was built around 1930 in a charming older neighborhood with great schools for our two kids. The seller paid for a one-year home warranty policy, which we understand cost her about $450. Within a week or two, the furnace gave off a bad odor. We phoned the home warranty company, which sent a repairman the next day. He said the furnace was in bad condition and gave us a written warning not to operate it. Because the weather was cold, we had to act quickly. We expected the home warranty company to either fix the furnace or install a new one. But the warranty company denied liability because the furnace problem was a "preexisting condition." Because we were desperate for heat, we bought a new furnace, which cost us almost $5,000 installed. The warranty company refuses to pay anything. Do we have any recourse? -- Vince R.

A: DEAR VINCE: Yes. You should sue that home warranty company in small-claims court for reimbursement.

Home warranty companies are notorious for denying policy coverage by stating a claim was an excluded preexisting condition, especially for large claims like yours. They often deny legitimate claims such as you have, realizing that most homeowners just go away and never sue them.

You should also report this matter to your state insurance regulator. Unfortunately, home warranty companies are very loosely regulated in most states, so they continue to get away with falsely denying policy coverage.

DEAR BOB: What is the protocol for choosing a real estate agent to sell my house? Can I interview three agents and let them know I will choose among them? If I am dissatisfied with the agent I choose, am I stuck with him or her, or can I "fire" that agent and choose another? -- Check W.

DEAR CHECK: Yes, you should interview three (or more) successful real estate agents who sell homes in your vicinity. They won't mind the competition because they know smart home sellers interview several agents before selecting the best.

However, after you sign a listing with an agent, you are stuck with that agent for the listing term. That's why I suggest signing an exclusive right-to-sell listing for no longer than 90 days. If you checked the agent's references of recent home sellers in your area, you can be confident the agent will do a good job.

However, if your home doesn't sell within 90 days, then you can either renew the listing for an extra 30 days or let it expire and relist with a better agent.

The only valid legal reason to cancel during the listing term is the agent's lack of "due diligence." If that should happen, contact the listing agent's office manager or broker to ask that your listing be transferred to a better agent in the same firm.

DEAR BOB: You've mentioned a Web site for professional home inspectors. My mom is moving from her home of 47 years. We need help getting the home prepped for sale. Where can we find a reliable home inspector? -- Elwood H.

DEAR ELWOOD: You and your mom are wise to obtain a professional home inspection before listing the residence for sale. By doing so, your mother can either have the home defects repaired or simply disclose them to prospective buyers so they are fully aware before making a purchase offer. In addition, you might want to obtain a professional pest-control (termite) inspection, unless your mom's house is in Alaska.