Short Sale Home Warranty? Absolutely!

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by Roberta Murphy

 

home warrantyWe have negotiated a number of San Diego short sales, and have yet to have one shorted lender or seller agree to fork over several hundred dollars for a one year home warranty.

And why might the buyer of a short sale need a home warranty?

Consider that homeowners in dire financial straits tend to ignore routine maintenance–and remaining appliances may or may not be in the best condition. Additionally, many of the homes may be vacant or have been tenant-occupied, and seller disclosures may be somewhat meaningless.

What to do if the seller or lender refuses to pay for a one-year home warranty–which we always demand for our San Diego home buyers?

Either negotiate with your Realtor or the seller’s representative to assist with the cost (or pay it in full)–or purchase the coverage for yourself.

This insurance can provide protection if the hot water heater goes cold, if the dishwasher doesn’t, or the air conditioner just blows hot air. There will almost always be a reasonable deductible for service calls, but the protection can be invaluable–especially with neglected homes.

And in case you are wondering, we always insure that our buyers are provided with this coverage (regardless of the type of home purchase)–even if we have to pay the cost ourselves.

It is coverage we ourselves wouldn’t be without.

3 responses to “Short Sale Home Warranty? Absolutely!

  1. Thanks for writing about this important topic. It is well worth the approx. $250-300 for the year’s coverage. In our cooler climate, we can opt out of air conditioner coverage for a reduced fee. I automatically provide sellers coverage starting on day 1 of the listing, and either pay for myself or negotiate buyer’s coverage into a purchase contract.

  2. Marian: I so agree; however, even if a coastal San Diego home has air conditioning, we always urge additional coverage for this feature.

    Something called Murphy’s Law….

    Hope all is well with Half Moon Bay’s Realtor!

  3. Thanks for this tips, having a one-year home warranty is really must have when your buying a house, many real estate companies are now offering this thing.

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