Phoenix Real Estate/ Arizona Homes/ Home Warranties Can Aid Buyer and Seller

HOME WARRANTIES CAN AID BUYER AND SELLER.
Many home purchasers erroneously assume that the Seller is always somehow liable when there is
a defect or failure found in the home’s cooling, heating, plumbing, electrical and/or appliances after
the Buyer moves in. Unless otherwise provided for in the contract however, risk of loss often falls on
the Buyer. Even where the contract provides that heating, plumbing, pool & equipment, electrical,
etc., need to be “operative” on or until date of possession, disputes can always arise as to when the
breakdown occurred, who is responsible, how the repairs are to be funded, and when they are to be
made.

Home warranty plans go a long way to alleviate these risks and concerns. For a modest price
(currently basic coverage is $300 to $400, slightly more for optional coverage), Seller can provide to
Buyer a one year warranty covering, specified heating, plumbing, electrical, water heater or
appliance breakdowns. Coverage under most plans commences at closing (although some can be
made to commence during the listing period as well). In all cases, there are important limitations
and exclusions (example: appliances/systems must be operative at commencement of coverage).

Inspections
Inspections and potential repairs are the number one reason sales don’t close. Typically,
buyers have a certain number of days in which to inspect the property and accept or reject
the property based upon these mechanical and structural inspections.

SELLER
SEES THEIR HOUSE

BUYER
SEES YOUR HOUSE

INSPECTOR
SEES THE HOUSE