Before purchasing a home today, most buyers of Beverly Hills houses have a home inspection. The inspector alerts them to issues he or she can see or determine through testing. The buyer and seller re-negotiate if the inspector notes that the roof, or the heating or cooling system is of an age or condition where it might be expected to fail within a short time, or if there are structural or safety issues.
This inspection is a useful tool to prevent buyers from purchasing Beverly Hills houses that are a “money pit” that might drain their resources in the coming years. But it can only go so far.
Better safe than sorry dealing with Beverly Hills houses
The fact is, the inspector cannot see and predict everything. The reason appliances are sold with a 1 year manufacturer’s warranty is because sometimes even brand new equipment is faulty. There are things going on with the interior mechanism that neither a homeowner nor an inspector can see or anticipate.
In addition, many new homeowners exhaust their savings with the down payment. They aren’t financially prepared to meet the cost of replacing a major appliance. It makes sense to spend all you can on a down payment in order to get a better interest rate and a lower monthly payment, but that doesn’t leave an adequate cushion should a $6,000 repair suddenly be necessary.
Enter the home warranty. For a small annual fee, the homeowner’s liability for the cost of repairs is limited to a fee of about $75 to $125 per incident. Compare that to a $6,000 furnace replacement or an $800 water heater replacement and the value is clear.
Sellers of Beverly Hills houses usually include a prepaid home warranty in the sale is a good marketing move. It’s a small thing that just might be the deciding factor in a choice between two homes. It’s also good insurance against the off chance that a buyer might come back and sue for damages, saying “You didn’t disclose…”
Buyers of Beverly Hills houses, purchasing a home warranty is an investment in peace of mind – knowing that if something unforeseen happens, they won’t be going over their heads in credit card debt to handle it.
Note to agent: If you are among those who give a home warranty as a closing gift, add the following sentence:
Since I believe home warranties are important for peace of mind, I give one as a closing gift to all of my home buyers. It’s my investment in their future happiness.