Greg Nino posted on ActiveRain today, asking if Home Warranties are Worth a Damn. His post has inspired this one.
Whether a seller offers to pay for the first year of a buyer's residential service contract or not, I always encourage my sellers to opt for the seller's coverage, available through several companies licensed in Texas.
About 5 years ago, one of my sellers had the seller's coverage in place even though she didn't think she needed it. The buyer's inspection report came in showing problems with both AC units. Both units were replaced under the residential service contract. All she had to pay was the cost of the service call. At that time, I think it was about $45. And the cost of the seller's coverage, about $50 over and above the first year of the buyer's policy, was paid at closing through the proceeds of the sale of the home.
Fast forward to this week. One of my sellers didn't take my advice and get seller's coverage. It would have cost him $60 and was payable at closing. The inspection report arrived along with an amendment, sent by the buyer's agent. You probably guessed it. Big problems. A cracked heat exchanger, rusted evaporator coil, defective ducts, problems with the garage door, problems with the water heater, and more. The seller has asked for, as is getting, THOUSANDS of dollars in allowances.
I haven't said "I told you so" but I'm 100% certain my seller can hear me thinking it.