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Winston Heverly We always place a "Seller's Home Warranty" on our listings (provided free of charge by the warranty company). It's up to the Seller and the Buyer as to whether that turns into a Buyer Home Warranty at close of escrow.
Sandy Padula and Norm...
Tony and Suzanne Marri...
Yes, but no so much as an incentive.
it is a mixed bag. and often they are only as good as the local company doing the work and charging. it does one thing for sure. it gives the buyer the "feeling" of security. But seldom covers what you think it will. Buyer beware
We use to have a brochure that we gave out but we don't do that anymore.
As Joe Pryor mentioned, the cost of the warranty sometimes costs more than what it covers. I just prepare everyone involved as to what could occur as worst case scanerios.
I mention home warranties on every listing and every sale. Many sellers are prepared to provide one. I believe it is a good tool.
From personal experience I do not find home warranties to be of great value. In one case on my home with what they are doing on major repairs like heat and air, by the time they caculate what they will not pay for I found I could get it done for less money outside the warranty. I now view them as sales gimmicks.
we don't offer them....we rarely offer incentives unless we are in an extreme buyer's market and we need to move listings....
I use home warranty as an resolution to avoid complaints....
Many people think they are not getting their money worth. We hired an inspector, we all crawl under the house, You signed an as is agreement.
If I have a listing that's an older house, I may encourage the sellers to offer it up front. With newer homes we leave it as a negotiating point if the buyer asks for it as part of their offer.
In terms of me using it to secure a listing, no. Never.
Absolutely.....and we have one for our own house and encourage others in our sphere to buy them as well she says having saved thousands of dollars on replacements !
I've tried that in the past just to get some listings. It did not work
Not so far.
Sometimes we do.
Winston Heverly home warranties are good for sure. I request my seller to include that at the time of listing. And for buyers, I highly recommend.
Sometimes they are good to have, but they seem to be losing their appeal. I think most buyers expect them, and most sellers usually offer them mainly for peace of mind.
They are part of the purchase contract in California, page 3 of the offer. One year is paid for by the seller. Negotiated items are cost, level of plan and any included items (pool, AC, etc.). All buyers check the "Seller pays" box and I've yet to see any seller balk at it. It is looked at as an insurance policy for the seller so if something big does go wrong, the buyer isn't mad at the seller.
Now me personally, I like them! I have four houses, each with a policy that I renew every year. For a $65 service call, I've gotten $1500 worth of a new water heater, circulating pump and labor on my house. My rentals have all had service calls from drain issues to heater issues. It usually costs more out here to have a service tech come out to look at the problem than the $65 cost. Mostly beneficial in older houses that get well lived in. I may cancel it on one of my properties because they only have one or two issues a year and no heater, no AC and not much to repair. The water heater is the only thing of concern, but I've probably paid for that already in my premiums these last 4 years. Plus, I just found an awesome cheap plumber on the same block as one of those rentals.
I always mention them and I tend to buy them as a gift for first time homeowners, especially if they are purchasing an older home. It may or may not come in handy but it gives them piece of mind. I just had a buyer, who is very saavy, decline the home warranty and then one of his subzero refrigerators stopped working the first week after closing. A small service charge would have covered the repair but he had to shell out a couple of thousand to fix it.
In difficult situations a warranty is a great closer to get listings and close sales.