Why Tulsa home Sellers should offer a residential service agreement (home warranty) at the time of listing
EVERY time I represent a Tulsa home buyer, we ask for a residential service agreement (home warranty) when we write our offer. A RSA covers plumbing, electrical work, heat and air, hot water heaters and more, depending on the plan. If I am representing a “not so handy” individual or if the home is older, I’m pretty insistent that my Buyer has that additional insurance against costly repairs during their first year of home ownership.
There are two reasons for offering a residential service agreement at the time of listing your Tulsa home for sale: (1) prospective buyers perceive that your home is in good condition and are comforted that you are offering the warranty; (2) should something break during the listing period, YOU are covered by the warranty.
Currently, I have a home pending that is scheduled to close today. The Buyer performed inspections about two weeks ago and the inspector suggested that the furnace be checked out by a certified HVAC technician, as the flame appeared to be irregular and rust spots were found. The Buyer elected NOT to have that work performed because there were items she considered more important to be repaired.
Why Tulsa home Sellers should offer a residential service agreement (home warranty) at the time of listing
The Buyer and her Realtor went to the home to conduct a final walk-through and inspect to make sure all requested repairs had been made. And, they found the thermostat at 51-degrees – no heat. We hoped that the thermostat had failed or that a simple valve needed to be replaced, but that was not the case. I sent my favorite HVAC technician out to inspect and he found that the heat exchanger was cracked. Now my Seller is going to have to spend $1,500 to replace the furnace before closing. Had she purchased the RSA during the time of listing, she would be paying a $60 service fee instead of paying the whole enchilada.
Difference in price is nominal. If a Buyer requests a home warranty for their coverage during ownership, the cost is $415. If the Seller purchases the RSA at the time of listing, the cost is $475. That extra $60 covers what may break during the listing period and STILL transfers the warranty to the new owner.
Now, if a tree had fallen on my Tulsa home seller’s roof, her property insurance would have covered that expense. But the components in our homes are MAINTENANCE items and not covered by home owner’s insurance policies.
So, yes, I’m a believer in purchasing a residential service agreement at the time of listing for this very reason. And I’ll be sending a link to this blog post to my future Tulsa home Sellers before they make a decision whether to offer a RSA at the time of listing!
