Omaha, Nebraska - Contributed by David Matney with Alliance Real Estate

It is obvious to all agents in the industry of the value of a home warranty.  This may not apply to all markets but in the Omaha market you can get a home warranty with the choice of it being an EVALUATED or NON-EVALUATED plan.

With an EVALUATED home warranty, the warranty company visits the home to make sure the major systems of the home are operational and are in working condition.  Now, if the warranty company finds a something wrong like a "dripping faucet" then that particular item is EXCLUDED from the warranty coverage.  Therefore, if your buyer wants the faucet fixed then they have to fix it on their own and the repair is not covered under the warranty coverage.

Now, if you represent a buyer a better way to protect your buyer is to say in the contract, "the offer is contingent on the seller to provide a EVALUATED home warranty with NO EXCLUSIONS."  Now, your buyer is now protected IF during the evaluation the warranty company finds a dripping faucet.  The seller would have to fix the faucet because it was previously agreed upon that the warranty would have NO EXCLUSIONS.

The key to all of this is to understand the terms and conditions of the home warranty.  Every home warranty company is different and coverage varies from company to company and market to market. 

Any thoughts?

David Matney, CRS,GRI

Alliance Real Estate

http://www.alliancesells.com/