Anybody have any experience with home warranties? Specifically, do they cover plumbing?
We're considering making an offer on a house, but there is some water damage on ceiling tiles in the basement, in a location that would most likely come from plumbing. It seemed dry in there, but since it is finished, we couldn't really get a good look at the pipes.
Our plan is to ask for the seller to pay for a 1-year home warranty. This would also cover a pretty old furnace that has been cleaned and inspected, but is old nonetheless.
I just want to make sure if I, for example, tear out the ceiling to replace the damaged tiles and discover a leaky pipe that the plumbing repair will be covered.
You need to read the fine print. I don't know if that would be considered a pre-existing condition or if that is even an issue, but we got three new ceiling fans with our home warranty after they stopped working.
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"The greatest thing in the world is not so much where we are, but in what direction we are moving." --Oliver Wendell Holmes
I'd have them pay for the home warranty. They most likely will. Out here, a home warranty is standard fare these days and the seller always pays.
I'd also have them fix it after the home inspection, or at least explain it. Use the inspection to your advantage and get money or get what you want fixed right away.
It should cover plumbing, we got a new garbage disposal within a year of buying our house.
I agree about using the inspection to your advantage though. Definitely ask where the water damage came from (possible that it's old and they had it repaired - but make them tell you that and then you have proof in case it backfires later).
1 year warranties are pretty standard offerings from sellers.
I think the warranty should cover it, but I would make them address it in the home inspection process. With the market the way it is right now, they'd be pretty dumb to let an offer go without making a reasonable effort to fix that type of problem.
We got a great home warranty, and it's nice because it can be renewed year to year. We'll probably renew for at least 2 or 3 years, as we have an old water heater and furnace, and I think it costs $200 to renew. Basically renew until we can replace both on our own...
Good luck with it!
E
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"It's what you've got inside that matters. The details and technological things will take you only so far. You still have to pedal the bike. Some people are always looking for the magic secret. There's no secret. Just bust your ass." -Dave Zabriskie
Something that minor would be in their best interest to fix prior to the sale. Warranties are meant for truly big expense items: broken furnace, rood that develops a leak, pipes that bust and flood the house.
If the ceiling tiles are removable, I'd suggest you get someone up there.
The seller may get a cheap plan just to pacify you, I would probably pick a company that has good reputation or that my realtor likes and request that company specifically.
The tiles were the type that are nailed/stapled into wood runners and thus can't really be removed without damaging them. If it had been a suspended ceiling, I would have popped one out myself and taken a look.
Turns out, it doesn't matter anyway. The seller had just made a major price drop ($30k) and wasn't willing to accept our other contingency that our house sell first.
Hopefully they won't get any other offers and they'll come back to us in a couple weeks, at which point we'll be in a stronger position to negotiate. In this market it's possible, but at the current price and location, it may be a longshot.
Before I started actively looking for a house, I didn't realize how many would have foundation problems. I suspect it's part of the reason they are down to my price range, despite having beautiful living spaces. Good grading on the grounds will help prevent it, but not always when you take into account the settling that occurs.
Because of this, I'm becoming less of a fan of finished basements, at least as it pertains to wall paneling and drywalling. They look nice, but unless they are easily removed, it makes foundation inspections impossible w/o doing some demolition work.
I know Owens Corning has a basement finishing service using wall tiles that easily come off for foundation inspection and access to pipes, wires, etc. That may be a good option for someone buying a house with a foundation in good to excellent condition.
Home Warranties
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