Home Warranty Catch for Buyers to Know

This recent article provided by the National Association of Realtors caught my attention.

The Warranty Catch your Buyers Should Know

I particularly liked the article as it provides the reasons why some sellers offer a warranty and it also advises the buyer that "Pre-Existing" defects typically get denied.
While we have had buyers save many dollars in repairs, we unfortunately had a client this past year who had significant claims that cost her thousands of dollars, all denied by the Warranty Company.  We went to bat for this client, we sent several emails and made as many calls to supervisers of the warranty company pleading a case for our buyer client.   In our review of the inspection report, the warranty company denied the claim because there was a picture that was included in the report, yet there was no written explanation about what the photo was illustrating.  While the heating contractor who the warranty company sent out to the home was able to identify the defect, he also informed the warranty company that this appeared to be a pre existing defect, thus NO COVERAGE.  It was the warranty companies position that the photo was proof it was pre existing.  The Buyer had no understanding whatsoever of what the purpose of the photo was or why it was in the report.

Do you need a Home Warranty?  Weighing the pros and cons     Allow us to add that we caution buyers when we anticipate a multiple offer scenario.   Price and terms get scrutinized when a seller has several offers to review and we suggest the buyer in these cases consider buying the warranty themselves.  Also, rather than including it as a requirement and an added cost to the seller, the purchaser has until closing, and perhaps beyond, depending on the company, to purchase a warranty if they so desire.  Of course, read the fine print to know the terms of a policy. 

Should you offer a Home Warranty when you sell your home?     This article presents reasons a seller may consider offering a plan.  Not only do listing agents suggest the warranty may help hook that buyer from choosing a different home, there are policies that offer the seller coverage during the listing period prior to the home selling, often with the understanding the actual cost of the policy or plan is not due until closing.  Not a bad deal to have such protection or "piece of mind" without up front costs.  Again, we suggest the plans be compared and read in full detail.  

Home Warranty Company Comparison for Michigan

There are numerous decisions made during the homebuying and selling process. 
We provide information to assist our buyers and sellers to make the best decisions possible.  While we offer every bit of energy and care to provide choices and advice, the answers or decisions must always come from our client.  We have expertise in marketing real estate, assisting in the real estate transaction process, and we diligently resolve problems that occasionally surface during the process.  We advise our clients and customers seek expert advise when needed from their respected Attorney, Financial Advisor,  Mortgage Representative,  Home Inspector, and any expert as needed along the road to Home Ownership.  

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