In most real estate markets, even in a seller's real estate market, most home sellers are willing to ante up to pay for an HPP - Home Protection Plan, aka Home Warranty.
The biggest reason is it's a showing of good faith. They cost anywhere between $300 for a very basic plan for an entire year to $1000.00 for a premium plan with all the bells and whistles.
Most turn out to be somewhere in the middle.
The extra fee's typically referenced "special" items that the home has. i.e. a SubZero - premium appliance. With a price tag of $15,000 - a Sub Zero Fridge requires extra to cover.
Pools are also an "extra" that a basic home warranty plan, HPP, does not cover. That is something that will have to be included.
Most real estate agents are very familiar with home protection plans. Most have them on their own residences and keep them up throughout the years.
Ours has paid for itself since moving in last October 2017. Plumbing issues, a leak, Pool equipment, filter and other 'very expensive' items have all been covered after paying a small deductible.
The other thing that the Home Warranty provides for the home seller is peace of mind. They are now able to move along with their life because instead of attempting to bother them, you are going to follow with the Home Warranty company if something breaks after you move in.
Make sure you know what items are covered and which are not.
For example, we are currently selling a property that has a Sub Zero fridge, there is no pool and the HPP that we were able to get the sellers to agree to was in the amount of $600.00. Just to make sure, I called our HPP lady and she informed me the home warranty has to be kicked up to provide for premium appliances. She fixed it and all is good in the world.
Sub Zero's, at least at the median housing prices in the Santa Clarita Valley are not very common.
As a home buyer, you are going to want to make sure, along with all of the other paperwork, you have the name of the home warranty company and the rep's the contact information.
For our real estate buyers and sellers(they have a plan too - see below), we always run interference for the first request should it arise. I want my clients to call me before calling the HPP company. I want to make the introduction because it makes everyone come to attention for my home buyers.
There are a lot of different contractors that work for the home warranty companies. Some of those "contractors" are great and some are horrible. When I make the first call, introducing my clients to the Home Warranty rep whom I give a ton of business to, I'm hoping she will choose the vendor wisely. The plumber, the electrician, the contractor, the pool person, etc., are all considered "vendors".
Home Seller's HPP - Home Warranty Plan
Did you know, that as a home seller, you can have a home warranty plan to follow your home before and throughout escrow until the date of closing?
It's very inexpensive, the only caveat is that the home buyer, those who end up buying your home, have to go with the same home warranty company.
Usually, we have the ability to have that work out within the countering process. Sometimes, it does not work out due to most buyers agents want to have the credit and home warranty issue going to a home warranty company and home warranty representative they know personally.
The reason for this is not because they "get anything in return". It's because when things go wrong we know who to call and have a business with them.
"Sellers coverage is $1.33 per day. It is billed through escrow. It starts when you requested and stop the day escrow is closing and that is when the buyer's policy starts. We sell you this coverage assuming we will get the buyers policy of course. We cannot get paid otherwise. It covers the items in the value plus plan: the basic home warranty items the upgrade and air-conditioning coverage. Air-conditioning coverage is limited to $1000 during Sellers coverage. All normal terms and conditions apply. If you’re going to utilize it, it must be put on prior to the home inspection. Once you’ve done the home inspection all of those items are now known as pre-existing conditions."
This is a paraphrase that of the Santa Clarita home seller's home protection plan while escrow is in process. Please contact me to see who we work with and to get your very own renewed home warranty plan policy. If you are a home seller, working with another realtor, ask them about this awesome coverage and how they can make it happen for you.
Be safe - talk soon and make sure you reach out to me, Connor MacIvor, when you are ready to have your Real Estate Won and not just done.