You are selling an expensive product. A potential Buyer will want to know that the product that they are buying is in good condition. Just prior to the close of escrow, it is vital to conduct a walk through. The walk through inspection is conducted with both buyers and sellers present. All electrical, water and gas systems should be checked at this time. All built in appliances and other appliances that are listed in the sales contract should be tested to be in working order. The results of the walk through should be written down and each item shown to be either working or not. Your sales contract should have stipulated what must be done if any defects were discovered at this time. Let us assume that there were no defects. Both parties have signed that all is in working order when the property title is transferred. Every one is happy. Two months later, the water heater bursts. The new buyer calls you, the seller at 2 in the morning wanting to know what you are going to do about this disaster. They insist you should have know exactly when the water heater should fail and they want you to pay for a new one. This is not an uncommon scenario and it often ends up in small claims court. Let us suggest to you that when marketing your property for sale, you offer a Home Warranty. You can include in your asking price a one year home warranty. This one item can strongly benefit you and your marketing plan. 1) You are staying competitive with the new home builders. They sell almost half of the homes in the Las Vegas Valley. 2) You are telling the buyer that you have a good product to sell and are willing to stand behind that statement. 3) You are telling the buyer that you are concerned about their satisfaction (this could help you when negotiating the final purchase price). There are various Home Warranty Companies to choose from. The basic plans will be similar to each other. A typical coverage would be for one year, would cover all built in appliances and the water, electrical, and natural gas systems. Each repair that might be needed will usually have a $35 to $50 deductible. Basic coverage will have a one time cost of around $300, payable at the close of escrow. Most warranty companies will have a menu for extra coverage such as for a pool and spa, washer and dryer, or refrigerator. Consider the above scenario with a home warranty. The buyer moves in and 2 months later the hot water heater bursts at 2 in the morning. The buyer calls an 800 number supplied by the home warranty company. The warranty company gives the buyer the names of 3 approved plumbers. The plumber comes out, installs a new water heater, the buyer pays the small deductible, and you slept through the entire ordeal. |
What About a Home Warranty? |
Jeannine Cutter (702) 283-8882 David Berg (702) 281-5827 |
