When I bought my laptop computer, I was asked by the sales clerk if I also wanted to purchase a warranty. I considered that I had just spent a lot of money on my new computer. Did I really want to spend more on a warranty when I could be buying cool gadgets and accessories instead? And by the time the computer breaks, the prices for laptops will have gone down and I could get a new one for less. On the other hand... it's not just the hardware I needed to think about. This computer would house my files, documents and pictures. Did I really want to risk that?
I ended up buying the warranty. It gave me piece of mind and I actually had cause to use it just before it expired.
Considering the purchase of a home warranty will probably bring up similar considerations. Most people wouldn't mind having one, but who should pay for it?
By the time everything in the contract has been agreed upon, sellers will most likely have made concessions to the buyers and are not inclined to pay for additional services. Buyers, on the other hand, will have so many other expenses after they close on the house that the last thing on their mind is spending another $300 to $400 on a home warranty. As soon as the dishwasher breaks down, two months after move-in, they'll most likely re-think that thought.
In some states it is mandatory that the option to purchase a home warranty is offered i
n the real estate contract.
What is covered by a home warranty differs from company to company, but most appliances, plumbing, electrical items, ductwork, heating and air conditioning are generally covered. The client pays a service call fee for a technician to come to the house to make the repairs. If the items can't be repaired, they are generally replaced with a "like" product.
The main benefits a home warranty offers are:
• Buyers receive the peace of mind that things in their new home won't break down once they move in.
• Sellers won't need to have to deal with buyers calling them after the sale of their home, asking them to pay to fix any problems with items in the home breaking down.
• During the marketing of a listing, a property that offers home warranty coverage for the buyers will have an edge over a similar property that is on the market without a warranty.
• For the Realtor® involved in the transaction there's the peace of mind that his/her clients won't have to deal with pesky repair bills, should something break down.
This last benefit made it real easy for me to settle the question of who should pay for the home warranty.
I will!
If one of my buyer clients purchases a house that doesn't already come with a warranty, I will pay for one at closing. For my seller clients I'll purchase a home warranty when they list the house. This way, if something breaks during the time the home is listed, they don't have to worry about having to spend more money and the buyers won't have to worry about it after the purchase.
It made sense for my computer and it certainly makes sense for a home purchase.
Sandy Nelson
Olympia Realtor®, GRI, ASP, Built Green
360-789-7505
www.SandyNelsonRealEstate.com
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