Everyday I hear agents saying, “Oh no, my buyer passed on the home warranty because it was an REO property and sold as is.” Or, “They can’t afford the home warranty.” However, these are actually the best reasons to purchase a home warranty for the property.
For example, a home inspector may tell the prospective homeowner they are looking at $200 in A/C repairs, $150 in plumbing work and $200 in electrical work after closing. Once these systems are brought up to good, safe and working order (even after the closing), the systems are covered by Old Republic Home Protection’s home warranty Plan for a full year.
This means if a compressor blows, a condenser needs to be replaced, or a slab leak erupts, these systems will be covered either for repair or replacement. This is what home warranties are designed to do – cover the major systems in the home (plumbing, electrical, A/C & heating) and the built-in appliances within the living space of the home and the garage that fail due to normal wear and usage.
The systems and appliances should be in good, safe working order on the effective date of the Plan. We know that many banks will not allow prospective buyers to conduct any repairs on these major systems until after closing. However, once the homeowner has addressed the issues flagged on the inspection after the closing, these items will be covered for the term of the Plan.
This very valuable coverage can potentially save homeowners thousands of dollars in unforeseen repairs or replacement of the major systems and appliances in their home. So, just when you think you can’t afford it, just remember–you can’t afford to be without it.
This article is provided courtesy of Old Republic Home Protection, a leader in the home warranty industry, providing superior service, comprehensive coverage and competitive pricing.
Should you have any questions regarding this article or home warranties in general, feel free to contact local area representative Amanda Wood:
Old Republic Home Protection
(800) 282-7131 ext. 1210