It's been several months since you sold your old home. You were pleased that the buyer was easy to work with and that the transaction went smoothly. You are enjoying your new digs, until one day the phone rings... It's the buyer. He says the water heater quit, and the air conditioning isn't working, and, and, and... you should pay for it all. What?! It's not my problem, you say, but the buyer is adamant. He says you knew about this. You say you didn't. Now what? ...
It's an unpleasant situation all right, even if you thought you did everything right. You provided the buyer with a property disclosure in which you carefully noted the condition of all appliances and the home's various systems to the best of your knowledge. You allowed the buyer to bring in his own inspector to check out everything. The buyer completed the final walk-through, and was satisfied with the property's condition on the day of the closing. He can't go after you for something that happens after the closing, right? He probably can't. But some buyers do anyway. In situations like this you may win in the end, but you'll still pay a price in stress and time.
So how can you avoid this? Provide the buyer with a home warranty. It's relatively inexpensive (less than $400 in most cases), and it covers built-in appliances, plumbing, heating and electrical systems. For a small additional cost it can also cover those appliances that are not built in, as well as the swimming pool, spa, or ay other special fixture that might break. So if something goes wrong, instead of calling you, the buyer calls the warranty company and they pay for the cost of the repair. Good for the buyer and good for you.
But, is it really your responsibility as the seller to provide this warranty to the buyer? Well, no, it isn't. Really, the buyer should buy his own warranty. When I work with buyers I always recommend that they do if the seller isn't willing to do it for some reason. But sometimes buyers are strapped for cash, and sometimes they are just "sure" they won't need it. In this case, the seller purchasing the warranty is not just for the buyer's benefit, but also for the seller's peace of mind. And the additional cost? If you think about this in advance before listing your home, you can figure in the cost of the warranty in your asking price. That way it's not really an additional cost to you, but it is an additional protection against hassles.
