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There are pros and cons to a residential service contract but I always advise my sellers this is a prudent investment on their part and will be dollars well spent for their buyer at closing. It is common place in Austin, Texas for a buyer to request the seller to pay at closing a year warranty for the purchase of a service contract. the cost varies from $400-$550 (without additional pool coverage,etc.). The buyer even gets to choose the policy and company.
One of our listings closed last week. We just earned the distinction of the "hottest" summer in Austin ever recorded with 70 straight days of double digit temperatures. Everyone's systems are straining on overload and apparently the buyer found today their system is not cooling! Thank goodness for a warranty the seller provided for the buyer. Calling the warranty company first is a must as they will tell you the providers they will need to contact. Hopefully they will get a quick response and get cooled off as this weekend the temperature is expected to climb to 110!! My seller definitely sees the value and is thankful he paid for the warranty so his buyer is covered!!
14 Comments
on A Wise Investment at Closing ~ Residential Service Contract
AUG
25
2011
For all those people wanting to take the gamble .. and bypassing a warranty, you provide an excellent example of why they should think twice about doing it. With all the extreme weather we've had everywhere over the nation this last year or two ... this has had to happen frequently. I like happy endings, Dorie ...
the home warranty company I use sends us notices of services. This summer I have had 3 homes I sold this year already using an AC service call. All of them saved considerable $$$ it is worth it to get that warranty even if the buyer has to elect to do it themselves if the seller wont agree
I have clients that had the warranty and had indeed used them. I can tell you they are happy to have it at that point. Important information and reasoning here Dorie.
Dorie - I won't close without one--even, heaven forbid - I have to buy it myself. I would just as soon not have to stand in front of a judge for not disclosing something I never even knew!
Author Bio: I was once a school teacher and still like the learning process. Only now I enjoy learning what dreams my clients have and what I can do to help them. I am a firm believer in asking the right questions. It is the only way to get answers that have helped me build an impressive business over the past 21 years and leave a trail of happy clients
Welcome to my ActiveRain real estate blog and profile. I'm a Realtor with Coldwell Banker United and specialize in NW Austin. Once a school teacher I still like the learning process. Only now I enjoy learning what dreams my clients have and what I can do to help them.
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There are pros and cons to a residential service contract but I always advise my sellers this is a prudent investment on their part and will be dollars well spent for their buyer at closing. It is common place in Austin, Texas for a buyer to request the seller to pay at closing a year warranty for the purchase of a service contract. the cost varies from $400-$550 (without additional pool coverage,etc.). The buyer even gets to choose the policy and company.
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14 Comments on A Wise Investment at Closing ~ Residential Service Contract
For all those people wanting to take the gamble .. and bypassing a warranty, you provide an excellent example of why they should think twice about doing it. With all the extreme weather we've had everywhere over the nation this last year or two ... this has had to happen frequently. I like happy endings, Dorie ...
Gene
the home warranty company I use sends us notices of services. This summer I have had 3 homes I sold this year already using an AC service call. All of them saved considerable $$$ it is worth it to get that warranty even if the buyer has to elect to do it themselves if the seller wont agree
I have clients that had the warranty and had indeed used them. I can tell you they are happy to have it at that point. Important information and reasoning here Dorie.
Dorie- I have to admit those policies can save so many headaches down the road. When the seller has moved on, it's nice to not have to look back.
Dorie - I won't close without one--even, heaven forbid - I have to buy it myself. I would just as soon not have to stand in front of a judge for not disclosing something I never even knew!
Good afternoon Gene,
I like happy endings also :).
Good afternoon Marilyn,
I too have received several notices from warranty companies and the pay outs they have made this summer..it is considerable!
Good afternoon Kathleen,
It's a wise investment anyway you look at it.
Hi Kathy,
You have that right!! You don't want to get a call after you have moved on.
Good afternoon Pam,
You make a very valid point!!
Dorie, I can't imagine living in that heat without a service contract...a definite must & great advice fo homeowners to heed..
Better be safe than sorry.
Hi Dorie, having a warranty is a good investment.
Good morning Ginny,
I would not like to close on a home without a service contract..better safe than sorry.
Good morning Joshua,
I totally agree!