Why is it important to negotiate a home warranty into your offer as a buyer?
When buying a home, I can’t stress enough on how important it is to negotiate a home warranty into the deal. Every house is used differently depending on the family. Example: The seller is living at his house all by himself. Let’s assume Mr. Seller takes 1 shower a day. You want to purchase this particular home and have a family of 5. One of your kids plays sports and needs a shower after all of his practices and games. If everyone’s taking 1 shower a day and your kid is taking 2, that’s 6 showers a day or 42 showers a WEEK. That’s significantly more than Mr. Seller who’s taking 7 showers a week. See how your water tank and plumbing will be used differently (quadruple the usage) than Mr. Seller? The same thing applies to your furnace/AC, appliances, and other items which may be covered on a home warranty.
But what if the seller says they won’t pay for your home warranty when negotiating and you don’t want to pay the $399 premium upfront? If you’re being represented by an agent who knows the industry, they’ll advise that the seller still pay for the warranty and you’ll add that $400 into the purchase price. That way it’ll give the seller approximately the same net as if they weren’t purchasing the warranty and you don’t have to pay the $400 upfront since the seller technically is. Granted the home will still need to appraise at full value, but it’s a strategy I use with my clients when necessary. If you’re looking to sell or buy a home in the surrounding Cleveland or Akron area, I’d be happy to help! (330)322-8868
But what if the seller says they won’t pay for your home warranty when negotiating and you don’t want to pay the $399 premium upfront? If you’re being represented by an agent who knows the industry, they’ll advise that the seller still pay for the warranty and you’ll add that $400 into the purchase price. That way it’ll give the seller approximately the same net as if they weren’t purchasing the warranty and you don’t have to pay the $400 upfront since the seller technically is. Granted the home will still need to appraise at full value, but it’s a strategy I use with my clients when necessary. If you’re looking to sell or buy a home in the surrounding Cleveland or Akron area, I’d be happy to help! (330)322-8868
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Comments
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Posted 01-26-2016 at 02:56 PM by case44
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I've read it. Did I do something wrong? Or are you referring to the email address I had in my entry?Quote:Originally Posted by case44
Posted 01-26-2016 at 05:28 PM by OHdanIO 
