"Let the Buyer Pay for their Own Home Warranty"
I hear this all of the time from cost-sensitive Sellers, then I spend a lot of time explaining that a Residential Service Contract (a lot of people refer to these as a home warranty), can help them if something goes wrong right after the close. After all. when something breaks right after closing, Buyers often assume that the Seller failed to disclose, a violation of Texas law.
We REALLY don't want to be getting phone calls and letters like that!
We had a San Antonio listing that closed escrow about 12 days ago, but since the Seller's new home wasn't ready and the Buyer's lender was late closing on the Buyer's loan, an Amendment was written up to allow two additional weeks for the Buyer's closing and a temporary residential lease for the Seller.
At 7:40pm, this Saturday night, I received a call from the Seller. It's 92% outside and the air conditioning is making horrible noises. (Things rarely stop working during the week!) EEEK!. Luckily, I had written their lease to include a clause that the Seller/Tenant was only obligated to pay the deductible on the residential service contract (home warranty) for any repairs. Otherwise, the standard terms are that the Seller/Tenant is responsible for repairs - which might be a NEW AIR CONDITIONING UNIT!
Wow, it's a good thing that these Sellers were willing to give the Buyers credit toward their "home warranty".
---Sara
Sara Woolford & Steve Golson in friendly San Antonio, Texas
If you are planning to Buy or Sell a home or land in San Antonio or the Texas Hill Country, we'd be happy to get you moved on with your life! You can go to our blog, website, Facebook page or just, call to Chat: 210-492-6683
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Our E/O insurance applications don't ask 'What percentage of residential transactions include a home warranty?' for nothing. It's a wise low-dollar investment into a low-grief transaction that stays in the rearview once completed . . .
And your's is not the only story like that. Good job in watching out for your clients.
The home warranty can sure save grief after closing - & can also make the inspection/repair negotiations go smoother! Our company uses an addendum notifying the buyers that such warranties exist & they can then check if they do or do not want one & who is being asked to pay for it. This way our E & O co. is happy knowing we have always made our buyers aware they have that option.
Hi Candice-
I just completed a renewal of our brokerage's insurance today and it did indeed ask that. It goes to show that it's good risk reduction for all.
No Seller wants to have trouble after closing....
-Sara
Hi Lottie- There are a lot of bad stories out there. I wouldn't want one of our Sellers or Buyers to be involved in one!
Hi Nancy- We send a letter out to all of our Buyers letting them know what they can do, some companies to contact and whether or not they are receiving a Seller credit for the residential service contract purchase.
--Sara
I think every sale should include a seller provided home warranty. It can save everyone a head ache in the event that things go bad.
Hello Sara and I remember years ago when I use to pay for all on my clients home inspections but not their home warranties!
VB ;-)
Hi John- We're going to start pushing more for home warranty coverage for Sellers whose homes are listed. It's an easy way to extend that warranty coverage to their Buyers and get some for themselves!
Hi VB- For some reason, Buyers are happy to pay for inspections, but they don't always want to avail themselves of those residential service contracts.
Thanks for lending your voices to the choir!
--Sara
Excellnet blog, the best thing a seller can do is provide a home warrenty!
That is a great point about paying for the home warranty.
Sara, great points to take into consideration. I can't remember the last time that a Seller of mind did not purchase a home warranty. It is all on how you posture yourself and the relevancy of such a good tool. It not only protects the Seller during the listing period, it protects the Buyer and also it helps take liability off of us.
Sara:
Home warranties included with the sale used to be commonplace in my area. Now, I cannot remember the last time I saw a home warranty that was being paid for by the seller (or broker.)
In today's penny-pinching economy, many sellers are looking at it as an unnecessary expense. Penny wise and pond foolish?
Although sometimes it can be hard getting a claim made under the Home Warranty I still feel they are a good purchase. If nothing else they provide access to contracted repair people below cost.
Howdy and evenin there Sara and Steve
Sara - Most of the home sellers in my area do not offer a home warranty with their home to the buyers. Actually I have only known of one home that did.
Have a good one
Dale
A professional home inspection followed by a home warranty are inexpensive "peace of mind" and a real life saver when needed. We especially feel that if a seller includes a home warranty in their offer, it conveys their concern for their buyer's continued satisfaction after the sale. They are usually asked for by the buyer anyway, so why not offer it up front? -Steve