I have had many clients ask me this exact question, whether a seller being asked to provide one or a buyer being advised to purchase one, and I am here to tell you that indeed, it is!
When selling a home, a buyer will likely request that the seller purchase a one year home warranty for them. Just like all facets of any contract, this item is negotiable between buyer and seller. Many people wonder if this is a waste of money, but I have actually witnessed these home warranties saving my clients hundreds, sometimes thousands of dollars. A home warranties, different from a homeowner’s insurance policy, will provide peace of mind that if any of the major appliances should fail during that first year of homeownership, it will be taken care of. While it is true that there are items that will not be covered, the major appliances and their essential functionality should be. Items typically covered could include hot water heaters, furnace/air conditioning, dishwasher, washer/dryer, refrigerators, and even pool/spa equipment. Sometimes you can even get limited roof coverage.
I once had a client with a pool heater that failed the day after she closed escrow on her home. Lucky for her, she requested a home warranty with this additional coverage, and the pool heater was replaced because it could not be repaired, and it only cost her the deductible, which was $75 at the time. Sometimes I have clients purchasing homes with older hot water heaters that are beyond their life expectancy. Knowing that one is purchasing a home with a currently functioning water heater that could go out at any time, that home warranty coverage definitely provides peace of mind that the water heater will be covered if it should stop working during the period the home warranty is in effect.
Sometimes you may need a little extra help, and that is where I can step in. Although a sale or purchase of real estate has a beginning, a middle and an end, I want my clients to know that I will be there after their transaction is complete. I just had a client phone me the other day to ask me a random question about home warranty companies. We started talking and it turned out his air conditioning had stopped working in the middle of this horrendous heat wave. He had filed a claim with the home warranty company, who sent out a technician immediately. The technician never followed up with him and my client was waiting weeks with no air conditioning. He finally just took care of the unit himself and made the necessary repair, thinking he’d have to swallow that cost. Fortunately, he phoned me and told me about this incident. I immediately phoned the home warranty company, and they will be reimbursing my client the cost for the repair (about $1500) for the work they would have had done. I was so glad my client called me!
So, it may seem like a potential waste of $500-$700 (average cost depending on the coverage requested), but I would sure feel better knowing my clients are not going to be hit with a major expense during that first year of ownership as they get familiar with their new home. Keep in mind that these warranties can also be extended for years to come if you opt to do so. There are hundreds of different home warranty companies out there, and you may want to do some research on what each covers and what add’ coverage you may want to consider. If you have questions on these companies and their services, please reach out to me at 619-944-2798, or [email protected]. I would be happy to help you navigate your way through the maze of information. Happy home shopping and selling!
