The Inspection and The Warranty: 2 Lessons Learned

Real Estate Agent with Wilkinson & Associates

hva Home warranties have become so commonplace in real estate transactions that we sometimes take them for granted. They are a fact of life in just about every contract that is written these days. For example, most Realtors advise buyers to write it into their Offer to Purchase regardless of the age of the home. That's because all homes come with the obvious potential of failures and breakdowns that may come into play in the future. Even new homes are prone to have defects which are sometimes overlooked by the builder, as well as, the building inspector.

A recent sale brings into focus the great importance of having a home warranty for both the buyers and sellers of any home. This particular transaction involved a beautiful full brick home built in 1990 in a popular neighborhood in South Charlotte. The home also had the original HVAC system. However, the home was covered by an existing home warranty that the sellers have had in place for some time.

The ensuing inspection of this home revealed, among other things, a faulty HVAC system. To quote the inspection report, “Scorching was noted on both sides of the HVAC unit in the crawl space…The burners on both the unit in the attic and the unit in the crawl space are rusted...Unusual flame pattern noted at the unit located in the attic...There were carbon monoxide leaks detected at 1ppm in the downstairs unit at the time of inspection.”

Doesn’t sound too good, does it? I didn’t think so, either! I had a sneaking suspicion that we were looking at some serious issues with the heat exchangers of both of those units. So, I urged my clients to request that the home warranty company get involved immediately in order to address this hazardous situation.

During the course of diagnosing the HVAC repair it was learned that replacement parts are no longer available for that unit, and that 2 new HVAC systems would be required – at a potential cost of over $10,000. This also meant an immediate upgrade in SEER rating, as well as, an enhancement to the value of my clients’ new home! Not to mention the comfort in knowing that a dangerous situation with the carbon monoxide was eliminated.

The moral of the story is two-fold: Buyers, make sure that you get a home inspection and a home warranty when purchasing your next home.  Sellers, if you do not have a home warranty, make your life a little easier by purchasing one when you list your home for sale.

Chuck Webb, Wilkinson & Associates,, 704-724-2454

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Lori Bowers
La Quinta, CA
The Lori Bowers Group

Great advice, as with homeowners insurance, you never know when or if you will need it, but when you do...boy are you glad you have it.....

Oct 05, 2009 06:30 AM #1
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