Often times when I am working with both sellers and buyers, I have to explain the reasoning behind either offering a Home Warranty (if working with a  seller) and purchasing a home warranty (when working with the buyer).  More times than naught, it is the seller that doesn't truly see the added value of Home Warranties with many commenting..."if the buyer wants it, let them purchase it".

When the Shane Steely Group places a home for sale, we explain to the seller that by offering a Home Warranty to the buyer, they are protecting the buyer from most ordinary flaws and breakdowns for at least the first year of occupancy by the buyer.  In essence, they are assuring the buyer that by buying their home, they can have peace of mind knowing the major covered components of their new home will be repaired if necessary.  This is a strong selling point, especially in the Kansas City Metro area where for the most part, we have a higher inventory of older homes in comparison to newly built.

For the newly built homes, the builder usually offers some sort of full or limited warranty on things such as quality of design, materials, and workmanship.  These warranties are usually for a period of one to two years from the purchase of the home.

Now keep in mind, even with a warranty, a buyer should ALWAYS have the home carefully inspected prior to the purchase!

Some might ask, what is the chance that something will go wrong w/in the first year if after a home inspection, everything is working great and is expected to have a long lifespan?  Well, the reason I write this is because last week I was reminded why.  I was standing on my stairwell leading to the basement, watching a nice "pond" of sewage form from one of the drains.  And yes, my home inspection results were better than most I have seen.

Lucky for me, the basement isn't finished, but still, it was pretty gross.  And yet again, lucky for me that I personally purchased a Home Warranty when I bought my home 7 months ago, even though the seller would not buy it for me.  I knew the added value of having one and sure enough, it has paid itself off.  Not 2 months after purchasing my home, my son's bathtub started to clog.  No matter how much "de-clogger" I poured down the drain; no matter how much "plunging" I did, I could not get the clog to release.  I contacted my home warranty knowing that was a covered service and the next day the plumber showed up.  Come to find out, my son's bathtub fixtures were fairly old and a piece within the drain component had inadvertently caused the stoppage.  It was replaced and it drained beautifully.  My cost; $50.  The warranty company picked up the remaining $100.  But anyway, back to basement which was slowly turning into a gigantic "septic tank".  I contacted my home warranty company and the next morning, the plumbers came.  I had a blocked sewer line from the house to the road.  They pulled out the rotor rooter and started to work (I understand why plumbers charge so much having watched them work in the filth down there).  Again, $50 later and the home warranty covering $350, everything drained and they were out the door!

So right now, I'm $60 ahead by having a home warranty (I purchased mine for $390 for 15 months).  With still have about 8 months left on my home warranty and with my home being 55 years old, I'm sure I haven't seen the last of one of their vendors they work with.  Oh, and unfortunately, plumbers DO NOT clean up the remnants from a septic back-up...too bad there's not a vendor for that!!!!

So, I picked up my mail from the office this morning to see a letter from a former client I helped get into a single family residence earlier this spring.  I had spoken with them just a month earlier (in my 3 month follow-up call) and nothing was mentioned, so I can only assume, the news they sent in the letter was recent...and it was.

When I or my team works with our Buyer clients during the inspection period of the contract, we assist them in lining up all inspections, whether it's the home, pest, foundation inspectors, etc.  Part of the inspection process I always harp on is the chimney inspection.  Since we have cold weather here, it is VERY important to know that the investment you're getting ready to make has an alternative operating heat source (if you're choosing to utilize the fireplace as one) in addition to our <given> forced gas systems (especially w/ the cost of gas these days)

None the less, this one client's new home did have a fireplace...actually 2.  During the home inspection I did my traditional "reason why you need to have inspections" speech and my clients agreed to the pest, home and structural side, but decided they didn't need the chimney, as the home inspector would look at that also.  Of course, I informed them that the home inspector is NOT a qualified chimney repairman (chimney sweep) but they assured me that they have purchased homes before with chimneys and never had an issue before and besides, they didn't want to spend the additional $99 for a chimney inspection.  This of course, is when I pull out the "Waiver of Inspection" form that I personally use to protect my team/company from future "issues" that could arise from former clients who elect NOT to do certain inspections and later regret it.

As I read the letter in my vehicle, I only could shake my head.  Seems my former clients, in getting an early start for the winter months, decided to have their chimneys cleaned before the rest of Kansas City started booking out the sweeps.  When the chimney sweep came in, it was upon HIS inspection that both chimneys needed repair and much more than a traditional tuck pointing.  Each had clay tiles missing and gaps where there shouldn't be and ultimately, to remedy both chimneys, it was to cost my clients $3,000 total for metal liners.  Now of course, the original home inspector didn't utilize a "camera" as does an actual chimney sweep and he makes certain on his home inspection report that he is NOT a chimney sweep and that clients should consider the professional service of one. 

Well, they indicated that they are going to pay for it, but acknowledged that next time around, they'll listen to their REALTOR, in that the measly $99 charge for a chimney inspection would have been MUCH less than the repair charge they now face.  Especially since they probably could have gotten the seller to pay for the repairs during the contract!

Moral of the story?  The Inspection Period during a contract is there for the protection of the buyer.  By utilizing all their inspection options (i.e. pest, radon, chimney, etc.) the buyer(s) can save themselves headaches and of course, MONEY in the long run. 

Should you or anyone you know have any questions about Inspection Periods or any other topic in Real Estate, feel free to contact the Shane Steely Group.

Ok, so the home across the street is for sale now.  The nice old lady passed away a couple of weeks ago and her only heir from TX came in, sold off everything inside and listed the home w/ a family friend.  My teammate Tom and I walked through it shortly thereafter and were dumbfounded as to how the asking price could be $320K, when the home itself is worth MAYBE $225K (and that's only for the land).  You see, as we walked up to the front door, I noticed A LOT of structural cracks in the brickwork.  When we entered, there were cracks in the walls the width of my pinky, which tells me there is a structural issue.  We're not talking just a couple of cracks....but a lot.

It is sad, but the home will eventually be sold at a much lower price, be torn down and a custom home will be built on the lot.  Not that it's a bad thing, but the thing that gets me is more time than not agents go into a home, promise huge returns, and deliver little.  We call this "Buying the Listing".  Of course, I do not practice this, nor do I allow my team.  Reason?  Honesty.  Example, a year ago I spoke w/ a potential listing.  After my review of her property; an evaluation of the supply and demand for her home; and a detailed market analysis of the existing homes in her neighborhood, I came up w/ an asking price of $259,000.  Ironically, a competitor came in before me and suggested her asking price be $270,000, which was $15,000 more than the last home sold...which was only 2 months ago.

Now, in the real world a bank lending money to a buyer for this home is going to question the 6% difference in price compared to a home of same value sold just 2 months ago, in the same market (no bubble).  There's an issue right there.

Now, compare the fact that the homeowner pays approximately $1600 a month in mortgage/insurance/HOA.  By going with the agent who said to list at the higher price, she sat on her home for 6 months before it was under contract, but at a much lower cost (around the pricing I suggested).  At the 6^th month mark, she had paid in almost 10, 000 in PITI.  Therefore, selling her home at the $259K from the start, thus getting it sold w/in the first month or 2 would have netted her more money in the long run (as she wouldn't have been paying house payments/taxes all those months). 

So what does this mean?  If you're considering selling your home, don't be fooled by those agents that say you can make SO much money by going with them.  Look at the details such as last home sold, pricing of existing homes in your subdivision and consider your monthly payments.  Selling it quickly at the RIGHT price will ALWAYS net you more money in the end. 

If you have any questions about this topic or are considering selling or buying a home, don't hesitate to contact the Shane Steely Group!

Kansas City of all places, is an interesting market where we are seeing increasing home values and seemingly improving market conditions.  Its still a buyers market, however much of the inventory out there is horridly overpriced, needs renovation or repair or (especially) updating, and little marketing past open houses on the part of agents.  It's still one of the few places though that will give you tons of land for the price, low cost of living (and lower than average gas costs!) et al. 

 Condos are hot here, although I question the prices as compared to the incomes...most condos downtown are over $400k...while you can still get a $70k home on the outskirts (within 25 miles of downtown).

 Still a big bargain!  Know anyone moving here, let me know; I'd love to help!