Don't get scammed: Experts offers tips for preparing your furnace for winter

The season for furnace scams is heating up as temperatures drop.

State regulators and consumer advocates are reminding home owners to do their research before forking over money for furnace cleaning, repairs and replacements.

“We get an increase in complaints this time of year about heating contractors that offer everything from duct cleaning to furnaces inspections,” said Phil Catlett, president of the Better Business Bureau serving West Michigan. “Most are reputable and competent, there are those out there that aren’t and they may try to frighten consumers into unnecessary

purchases or repairs.”

Many home owners don’t understand what heating work involves, and expenses can run from less than $100 to several thousand dollars, so it’s easy for contractors to take advantage of some people, said Steven Hilfinger, director of Michigan’s Department of Licensing and Regulatory Affairs.

Mechanical contractors must be licensed with the state. Consumers can verify whether a business has the proper licensing by checking online or calling the Bureau of Construction Codes Mechanical Division at (517) 241-9325.

Customers also should ensure that a company is insured for liability and property damage.

Typically, if there have been problems with a company not following through on promises or duping customers, it will show up on the Better Business Bureau website. The BBB can perform an investigation if someone requests one.

Company longevity is another thing to consider, said Gary Schultz, who started Aspen One Hour Heating & Cooling in Jackson in 1981.

“If you’re going to make a large purchase, look at their website, look at who they are,” he said.

Schultz recommends getting a furnace safety check every year. His company is offering the service for $79.

There are varying opinions on the need for such services.

“Think of it a bit like your car. Both of them are potentially dangerous if they’re not running well, so by having an annual checkup you reduce the likelihood that there might be some dangerous issue,” said the BBB’s Catlett. “On the other hand, if money is tight, I don’t think there is any absolute that you need to have somebody come and inspect your furnace every year.”

Catlett recommends getting at least two or three estimates before having your furnace serviced or replaced.

If it’s urgent and there’s no time for three estimates, then ask for references from friends and family or check with the BBB, he said.

Home owners should consider replacing their furnace if it is more than 15 years old, according to Energy Star, a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy.

A new furnace can cost up to several thousand dollars, but replacing old heating and cooling equipment with more energy efficient equipment can save some home owners nearly $200 on their annual energy bills, according to Energy Star.

Here are some more tips, courtesy of the Department of Licensing and Regulatory Affairs:

• Clean your furnace’s air returns with a household vacuum cleaner. Check the filter once a month and replace it if necessary to maintain efficiency and prolong the life of the furnace.

• Get your furnace thoroughly cleaned by a reputable, licensed mechanical contractor at least every two years. Beware of duct cleaning scams, where companies use cheap, low-quality vacuums.

• Check the warranty to see whether it covers any repairs or replacements. Many systems come with long-term warranties.

• Seek a contractor that offers warranties covering equipment, materials and labor, and offers maintenance and service after installation and after warranties have expired.

• Don’t do business with door-to-door salespeople and don’t fall for telephone solicitations that offer “low-cost” or “free” furnace cleaning. Once inside, the worker may tell the home owner their heating system has serious problems that require immediate attention. Get a written description of the suggested work and seek additional opinions.

• Be aware of scare tactics leading you to believe your existing furnace is dangerous. Don’t sign a contract just because the worker says you’re at risk of possible illness or death if the furnace isn’t replaced immediately. Ask for a written copy of the technician’s test results and call your local utility company to come and inspect your system.

Existing-Home Sales Ascend in October

The housing market hasn’t shown much growth in 2017 as recurring inventory issues continue to plague the industry. But the latest existing-home sales report from the National Association of Realtors offers a bit of encouragement for agents and consumers.

Total existing-home sales increased by 2% to a seasonally adjusted annual rate of 5.48 million during the month of October, the NAR reports. It’s the second consecutive month of market improvement after existing-home sales increased by 0.7% in September after three straight months of regression.

NAR chief economist Lawrence Yun believes employment growth has supplied buyers with plenty of confidence that now is the right time to purchase a home.

“Job growth in most of the country continues to carry on at a robust level and is starting to slowly push up wages, which is in turn giving households added assurance that now is a good time to buy a home,” Yun said.

“While the housing market gained a little more momentum last month, sales are still below year ago levels because low inventory is limiting choices for prospective buyers and keeping price growth elevated.”

The progress is exciting as 2017 concludes and the NAR reports sales are at their strongest pace since June. However, transactions are still are 0.9% below the pace set in 2016.

Low inventory has once again played a role in the market’s behavior. Total housing inventory dropped by 3.2% to 1.8 million existing-homes for sale by the end of October, according to the NAR. The inventory level is currently 10.4% lower than it was a year ago.

Scarcity continues to play a role in the price of homes that were actually sold. The median existing-home price for all housing types was $247,000, which is 5.5% higher than the median sales price last October. That marks the 68th consecutive month of year-over-year gains in median home prices.

The sales pace remained unchanged from September to October. Homes remained on the market for an average of 34 days last month, per the NAR. The average home stayed on the market for 41 days in October 2016.

The housing climate is advantageous for sellers and might be a bit more arduous for buyers trying to find the right home for the ideal price. Inventory is low to begin with and the houses that go to market aren’t available for long and aren’t going for cheap.