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Well that is not just Sears - from talking to people who have had a water heater replaced and use Sears Home Depot or whatever appliance store - they all quote a low ball price - if the new water heater just rolls right into the old piping and fittings - which is somewhat rare. And any and all additional work costs you more .
To do my water heater I bought it from Home Depot and rented their truck for $25 and had a friend help me get it into the basement. And yes I had to do some work on the existing plumbing to get the new water heater to connect. And I've still not plumbed the relief valve - 3 yrs later so I best put that on my list of chores this fall.
It's just a pretty standard way these contractors operate and make some relatively easy money on these jobs.
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