To Warranty or Not, that is the question?

By
Real Estate Agent with First Team Real Estate BRE# 01400631

 

 

In my mind there is never a doubt as to weather a buyer or for that matter a seller should have a home warranty policy in place.  It is the norm here in California for a seller to pay for a home warranty policy for the buyer.  

But... what about a policy for the seller?  It is not the norm to have a seller get a policy on their home when the listing is taken and many agents are not aware that seller's coverage can be purchased during the listing period.  Seller's coverage runs around $1.00 per day and is paid at the close of escrow if the house sells or if the policy is actually used and the seler does not move forward with a sale.

As we know in this business, expect the unexpected. It's like Murphey's Law, if it can go wrong it will go wrong and at roughly $1.00 per day if it does go wrong,  isn't a $60 service call for a plumbing leak much easier to swallow than a bill for $625 because a plumber had to go out on a Sunday evening? 

 

 

 

Posted by

Cindee Cano

First Team Estates

Realtors® | BRE 01400631

 

Christie's International Real Estate

Luxury Portfolio International

 

Cindee 714-328-3333

Info@CindeeAndMichael.com

 

www.CindeeAndMichael.com

Comments (6)

Doyle Davison
Hawaiian Beaches Hawaii - 714-968-6767 - Huntington Beach, CA
30 years as your Concierge services listing broker

I agree that any insurance is better than no insurance. fortunately home warranty insurance has a very small deductable too.

Jul 18, 2015 05:19 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I always recommend home warranties and also ask them to read the fine print.

Jul 18, 2015 09:02 PM
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West - Carlsbad, CA
Presence, Persistence & Perseverance

Cindee Cano We do inform our sellers of the home warranty availability while listed and about 50% elect for this coverage. Good post!

Jul 18, 2015 10:42 PM
Michael Dagner
Brokers Guild Classic - Denver, CO
Your Denver Homes Realty Expert

Hi Cindee, that's one of the best features of the home warranty policy - sellers coverage.  Nice post!

Jul 19, 2015 12:24 PM
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Cindee - I am with you, and think buyers should always get a home warranty plan. I believe that I recently heard of a company that sells a warranty for the home seller, and then it can be transferred to the new buyer. I am going to look into it.

Jul 20, 2015 01:57 PM
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

Here in my market it's not a given that a seller will pay for a home warranty for a buyer but it is something I will always try and negotiate for my buyers. Even if the seller doesn't pay for it I still recommend the buyers purchase one. 

Jul 21, 2015 01:04 AM