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.

Lorrie Semler, e-PRO, GRI, SRES
Addison Resident/Addison Expert                                                      Subscribe Button
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Keller Williams - Dallas Premier
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7 Comments on Home Warranties: Seller's Coverage

AUG
22
876,272 Points 205 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Hey Lorrie! Thanks for the mention.

"One of my sellers didn't take my advice and get seller's coverage." <--- Classic!
1:31pm • #1
886,379 Points 227 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

The home warranty plans that we use here, often don't cover "pre-existing", and they consider rust (which typically leads to cracked heat exchangers, coils and ductwork) to be a pre-existing condition.
1:31pm • #2
1,314,033 Points 97 Featured Posts Outside Blog Hit Router Attended Rain Camp Called Shot Master

Lorrie, Which company(ies) are you recommending these days? AHS is the only one I'm aware of that does pre-existing and improper installs.
2:23pm • #3
560,764 Points 9 Featured Posts Localism Sponsor Hit Router Attended Rain Camp Called Shot Master

Greg: You inspire me. What can I say!

Alan: Most won't cover pre-existing here either, but it NEVER hurts to call them in and at least make sure what the buyer's inspectors found is correct and get an estimate to repair or replace.

Donna: Call Tammi Burgee at Fidelity National Home Warranty. 214-732-5999. She can tell you who handles Austin. And their premium plan covers code compliance issues for bringing things like water heaters up to code. First American, I think, also has seller coverage.
2:32pm • #4
890,802 Points Outside Blog Called Shot Master

Lorrie - Thank you for sharing detailed quality information on home warranties seller's coverage.
3:51pm • #5
AUG
23
493,057 Points 12 Featured Posts Attended Rain Camp Called Shot Master

Seller home warranty policies are worth their weight in gold!  Tammi Burgee is a great rep and Fidelity Home Warranty has helped many of my buyers and sellers.
9:36pm • #6
AUG
27

You can look like a HERO to your clients. If the seller won't pay for it, give them the gift of the coverage. The gift that keeps on giving for so little, you can't help ubt be a winner in their eyes. It is called referral business.....

Lorrie is absolutely correct..Sellers Coverage (SC) can save your clients a lot of money.. When covered items break down during the listing period or the inspector notes covered items that are in need of repair, all it takes is a call to the warranty company to have it fixed.

Air Conditioning is the #1 call for service and #1 concern to the buyers. With SC in place it helps to possibly eliminate some of those pesky pre-existing conditions that no one covers. It does not guarantee elimination of all pre-existing conditions left on the property but it is certainly worth the money for the peace of mind it gives the seller, especially for AC issues.  We, at Old Republic Home Protection, cover Undetectable Pre-existing conditions in our Standard plan so our sellers have the benefit of this coverage.

To view our plan and sellers coverage go to www.orhp.com

Beverly Polyniak, Sr. Account Executive with Old Republic Home Protection, Austin Texas
10:49am • #7

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Lorrie Semler, REALTOR® Addison TX 972-416-3417 (Keller Williams Dallas Premier) Rainmaker_large

Lorrie Semler, REALTOR® Addison TX 972-416-3417

Addison, TX

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Keller Williams Dallas Premier

Address: 12700 Preston Rd. #190, Dallas, TX, 75230

Office Phone: (214) 739-5500

Cell Phone: (972) 416-3417

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Ah, Addison! Not a city, but a "town." The Town of Addison. The best place to live and work in North Texas. There's something to be said about a place that doesn't take itself too seriously. Note the exclamation point in the town's name. Here you'll find the ruminations, rants and raves of one of the town's realtors and residents.



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