Home Warranty

Typically, buying a home is the largest purchase people make. Whether new construction or a complete fixer, every property deteriorates with each passing day. So what can be done about it? For starters, buyers can ask the seller to pay for a one-year home warranty when an offer is submitted (this is renewable after the year). Sellers often agree to give a warranty as it assures the buyer and seller that issues that arise within the first year (be aware that home warranties have limited coverage) will be repaired through the home warranty company. If you are currently in escrow and already had your buyers’ inspection, you can request repairs be done on the property or ask for a credit based on what work you believe the home needs. The seller does not need to agree to any of the repairs, but it is smart to ask. Getting a home warranty is a good idea even if the sellers choose not to agree to one.

As you can see from the picture, this gas line has seen better days! My clients smelled gas within their home that they recently purchased in the Montalvo, Ventura area. The deteriorated gas line did not show up on the buyer’s home inspection report when my clients were in escrow. And to our knowledge, the seller was not aware of this issue. Due to the need to repair the gas line as soon as possible, my clients immediately had a plumbing contractor come out to fix the gas line. The home warranty reimbursed my clients for the repairs. Before you get a home warranty, it is important to verify that the warranty will reimburse you for covered items if you choose to use a specific contractor and pay out of pocket.

Although I do not recommend a specific home warranty company, here is a list of a few that I have seen purchased: American Shield, Old Republic Home Protection, Fidelity National Home Warranty, First American Home Buyers Protection, CRES Home Warranty by HISCO, and Buyers Protection Group.

When a seller does agree to pay for a one-year home warranty, it’s a win-win situation, as the seller knows items neither party were of aware of will be repaired. (Please be aware that home warranties are limited in nature, and it is recommended that buyers of the home warranty do their due diligence to their satisfaction.)

Chris Chin |Broker & Owner

October 7, 2014

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