Avoiding problems

A - Home Warranty: Is it smart to offer this as house protection?

A helpful negotiating tool:

A house warranty or homeowner's warranty provides home protection from repair and replacement costs for things like major appliances, plumbing, electrical, heating and air-conditioning units and usually without a prior inspection. Basically, it's a guarantee that most mechanical systems will be in working order for the first year of ownership by the new buyer.

It can be used to save the day in order to clinch a deal. It can ease buyers’ fears while giving you some protection and peace of mind.

During negotiations, if a question concerning the remaining life of some mechanical item (such as a central air conditioner) becomes an issue, you can put the buyers at ease by suggesting the use of a home warranty. 

The seller usually pays for it but it can be negotiated, including splitting the cost. A warranty for a newer home usually isn't as necessary. If it's requested in this situation, look to the agents to pick up the cost in order to get the deal together.

If the buyers are using a Realtor, suggest that the home warranty would make a great house-warming gift from their agent, who can even deduct it as an expense.

Below are some of the largest and warranty providers in the business. Having the policy information before it becomes an issue may help to make a sale.  

You can be covered too:

Simply call and advise these companies that you're selling your home. They'll send, fax or e-mail you a blank policy. Typically they cover the buyers' first year in the home and cost from $350 to $500. Some companies will optionally provide protection to the seller before the close. However, these companies only cover homes in the USA:

American Home Shield        800/247-5153                 Not available in Alaska    

Choice Home Warranty         888/531-5403

Empire Home Warranty         877/236-9660

Home Buyers Warranty        800/795-9595                 Not available for homes being sold by owner.

Home Warranty of America  888/492-7359                No coverage in North Carolina

Shield Star                  877/782-7987

Warrantech                              800/723-1496                Not available in these states:

                                 AK, CA, CT, FL, GA, MA, MT, NH, NY, VA, VT, WY