Imagine that when you listed your home with an agent, the dishwasher was working. You have moved to your new location, and your agent has brought in a buyer with a home inspection contingency on the contract. A home inspector inspects your home, and now finds that the dish washer is NOT working. Small things like this can be bothersome to sellers who would now try to either pay for fixing, replacing, or offering a credit. However, it may be to a sellers benefit to have a home warranty that covers many of the mechanical and plumbing issues that are covered by the terms of the sales contract or home inspection contingency. It could be just a dishwasher, or something as big as a water heater.
For buyers, there is an incentive towards buying a home where a warranty is offered. Many times it just gives them peace of mind to know that they won't have to spend any large amount of money to repair or replace appliances in the home for the term of the warranty. It's important for buyers to ask questions about the home warranty:
What does the warranty cover? Appliances, heating, air conditioning, plumbing are all standard coverage. Check to see what is covered.
What is the deductible? Does it cover the cost of labor and/or the new equipment? It may seem like an obvious question, but read the service contract to see just what is covered. I've negotiated tons of contracts- leave no questions unanswered.
Ask about plan coverage for 13 SEER: The Department of Energy has phased out many old systems that may still be in use. Review your home warranty service contract if the the home (you are buying or selling) uses anything less efficient than 13 SEER to heat or cool the home.
There are special clauses in the contract about replacing an entire unit if the parts for less efficient equipment are no longer available.
Next time: DIY for the Home Owner
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