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Voices Member,  in

I wanted to know what buyers and sellers think about home warranties on listed properties?

Asked by Voices Member, Tue Apr 8, 2008

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In the present as I have increased my dealings with Foreclosure homes throughout the Detroit, MI Metro area, I find Home Warranties if purchased correctly can be a valuable asset to a property for a buyer and seller. In Michigan a new program through the company that brought Home Protection One will be offering policies that cover roofs, and several other items that haven't been included in standard policies. For a $100 or more so to a policy I think Home Warranties can offer great relief to those on fixed or on tight incomes.
0 votes Thank Flag Link Wed Apr 9, 2008
There is also a distinguish between Seller coverage or Buyer coverage for the Home Warranty. The one I talked about is the home warranty during listing period only; which I usually get as a benefit for my sellers. If we are talking about home warranty for buyers, then I agree, it will be a bargaining tool when selling a home. Depends on the age and condition of the home, some might care, some might not (one of my buyers bought a big fixer to fix up,, so the warranty does not benefit them at all), for my young clients who just bought an older, first time home, the coverage is quite important and give them a sense of security.

Sylvia
0 votes Thank Flag Link Tue Apr 8, 2008
Sylvia Barry,…, Real Estate Pro in Novato, CA
MVP'08
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Again and again, the home warranty has proven helpful for my clients. I like that I receive notification of a past or present client using the home warranty to fix something, it gives me a chance to call them and let them know that I care about them and want to stay in touch. It is such a cost savings for the client, also versus calling a contractor to get something fixed.
0 votes Thank Flag Link Tue Apr 8, 2008
I think it's a bargaining tool and in the end, it's the buyer who pays the fee for it. I'd rather have the price of the warranty deducted from the sales price, personally.
0 votes Thank Flag Link Tue Apr 8, 2008
Hi Alys:

I always get the listing home warranties for my sellers if they don't already have one. I think most of my sellers like the idea, but they don't really realize the benefit until something happens. The listing coverage is not as generous as a buyers home warranty policy but it's better than none.

Just had to use one for my seller's home. The furnace had a crack and would cost $3500 to replace (which is needed). Although the warranty company only allows for $500 as a listing coverage, it's $500 better for my sellers;; and the cost is very low. I personally think it's worth it.

Sylvia
0 votes Thank Flag Link Tue Apr 8, 2008
Sylvia Barry,…, Real Estate Pro in Novato, CA
MVP'08
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