In the Real Estate Final Sales Agreement, there is a section where the buyer states if there will be a home warranty included in the sale, who pays for it, and for what coverage. This should be a conversation you have while writing the offer.
You should think hard about the repairs that might be needed to appliances, leaky plumbing, maintenance to the furnace and air conditioning units. Some warranty coverage will include appliances, annual HVAC maintenance, sudden plumbing leaks and even roof leaks, you need to review the coverage offered as the price is effected by the coverage.
In a seller’s market, like the one we are in now, it is hard to ask the seller to pay for for the coverage unless you offer some type of over-payment on the sales price or concession given up somewhere else. A buyer’s market has proven to offer more ease in asking the seller to take on this cost.
This year marks the 5th year in my home, I had decided not to renew my home warranty after the first year, and this is the year I regretted that decision. The first hit was our fridge which would not stop freezing the fridge portion, the cost to fix in a hurry was $400, a replacement was $700, I decided to repair. This would have been covered for a $60 service fee. The second was my garage door spring, as I opened the garage door, a loud thud sounded, the spring had split into two pieces. I had no other option but to repair, as my cars were trapped and the door is pretty heavy. That was a $200 repair which would have been covered for a $60 service fee.
At that point, $600 into repairs, I decided to purchase coverage from Landmark Home Warranty, the premium coverage was just under $500 annually. I had the HVAC pre-season tune up service completed, a $60 charge, and all has been well. This summer the AC stopped being as efficient as it always had been, a $60 service fee later, I we found a Freon leak, this week, I get a whole new AC unit. Last week my heater stopped turning on, its starting to get cold, so I called again to get it checked out, a $60 service fee later, we found the heating core cracked, now I get a new heating core. These 2 fixes alone have cost me over $3000.00 in repairs and replacement. If i didn’t have the warranty, I would be considering not repairing or replacing anything due to cost, now, I have peace of mind and a lot of extra cash!
As a real estate agent, I can help you get great coverage and in touch with a great home warranty rep, call me and ask how! 503-218-3838