{"id":1227,"date":"2021-02-05T09:00:32","date_gmt":"2021-02-05T14:00:32","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=1227"},"modified":"2024-04-25T23:20:03","modified_gmt":"2024-04-26T03:20:03","slug":"when-your-seller-offers-you-a-home-warranty-instead-of-repairs","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/when-your-seller-offers-you-a-home-warranty-instead-of-repairs\/","title":{"rendered":"When Your Seller Offers You a Home Warranty\u2014Instead of Repairs"},"content":{"rendered":"\n
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Let\u2019s cut right to it. For sellers, throwing in a home\nwarranty can move a transaction along, because it appeals to the buyer\u2019s need\nfor peace of mind. But from a buyer\u2019s side, if appliances or systems are\nexpected to break down, it can make more sense to say \u201cNo, thanks\u201d to the home\nwarranty, and ask for a price break instead.<\/p>\n\n\n\n

Why? Let\u2019s do a walkthrough.<\/p>\n\n\n\n\n\n\n\n

Why Sellers Offer Home Warranties<\/h2>\n\n\n\n

A home warranty doesn\u2019t set the seller back too much, yet potential buyers may find it persuasive. As Angie\u2019s List<\/em> puts the point, a home warranty \u201ccan be a great marketing tool<\/a>.\u201d Sellers\u2019 agents, therefore, often suggest including home warranties in home sales where there are a few big-ticket repairs the buyer might face after closing. <\/p>\n\n\n\n

Angie\u2019s List<\/em> quotes<\/a> Mark Finchem, a Tucson real estate broker, as explaining the role of liability in the connection between agents and home warranties. A seller\u2019s agent might urge the seller to offer the buyer a home warranty so the buyer is less likely to take legal action over an inadvertent failure to disclose issues with systems or key appliances.<\/p>\n\n\n\n

In other situations, a seller simply has no time to replace\na system before closing, and understandably wants to assure the buyer that all\nwill be well. In this scenario, the buyer gets the home with the item as-is: an\nolder washing machine, for example. (Items covered in the policy could be plumbing\nor wiring systems, water heaters, the clothes washer or dryer, the dishwasher, a\nfridge, a stove or built-in microwave oven, or sink disposal unit. Warranty\ncoverage varies by company.) <\/p>\n\n\n\n

Fast-forward to the day that 40-year-old washer creates a\nmess. (The typical warranty is good for one year after closing, and the home\nbuyer can renew it yearly.) The home buyer calls the home warranty company to\nhave someone come out and fix the washer. <\/p>\n\n\n\n

The homeowner now learns that each repair visit requires a\nsort of co-pay, usually around $50 to $120 per ticket, as a service charge for\nthe contractor. <\/p>\n\n\n\n

And now, here comes the actual repair. If there is any way\non Earth to fix that machine, count on the repair person to do it! Why? The warranty\ncompany typically does not wish to give the warranty holder a new appliance. <\/p>\n\n\n\n

The repair is done. The homeowner is now left with an old,\ninefficient appliance that\u2019s rusting out, and getting worse over time. <\/p>\n\n\n\n

Common Home Warranty Limitations <\/h2>\n\n\n\n
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Expect a maze of limitations in many of these policies. In 2019, as reported in The Washington Post<\/em>, the nonprofit consumer advocacy group Consumers’ Checkbook (Checkbook.org<\/a>) studied the plans of 14 different companies. The research found that home warranty policies have many ways to hedge and reject potential payouts<\/a>.<\/p>\n\n\n\n

What kind of warranty limitations do homeowners face?\nLimiting rules could include the following:<\/p>\n\n\n\n