Marc Posted March 23, 2010 Report Share Posted March 23, 2010 Lost a sale yesterday because some competition of mine offers a warranty and I don't. It's time I checked this out and thought I'd begin with an inquiry to the TIJ brain trust. Who are the venders which allow a home inspector to offer a warranty for sale to their clients? As I understand, these warranties are only valid until closing. I'd like to get an intimate understanding of them. All the fine print. Thanks in advance. Marc Quote Link to comment Share on other sites More sharing options...
Inspectorjoe Posted March 23, 2010 Report Share Posted March 23, 2010 Marc: How would a warranty that's only valid until closing be a benefit to the buyer? I'll never offer a warranty. I don't want my clients to associate my work with a warranty of any kind. Quote Link to comment Share on other sites More sharing options...
caryseidner Posted March 23, 2010 Report Share Posted March 23, 2010 Marc, Do you mean a warranty for your inspection, or a warranty for the home? Quote Link to comment Share on other sites More sharing options...
Marc Posted March 23, 2010 Author Report Share Posted March 23, 2010 Marc, Do you mean a warranty for your inspection, or a warranty for the home? The caller had a concern about a water well, no longer in use, that had been cemented over. She asks if I could confirm that it was properly capped. I replied that I could not see through the concrete but would check for hazards. She then asked for a warranty and cancelled a scheduled inspection an hour later. There's new competition in town. A new franchise chain and they offer free warranties. I'm guessing that the answer to your question is 'Home Warranty'. Marc Quote Link to comment Share on other sites More sharing options...
Tom Raymond Posted March 23, 2010 Report Share Posted March 23, 2010 As I understand them, listing period warranties are purchased by the seller and are valid 6 months, or if it sells, 1 year after closing, at which time the new owner is bombarded with sales calls to re-up. They are most often sold by the listing agent (you can buy these wholesale for around $50). If they are not properly transfered at closing (and the transfer fees paid) they are void. I have a client that was willing to pay me to review his warranty and check the covered systems but he never received his warranty at closing. He has no coverage and I lost a gig. I read an article somewhere about an underwriter that is trying to build a new model where the Home Inspector checks the house and bases the warranty on his findings rather than the current 'blind' model, but I haven't seen anything new on that front. Warranties would be handy add on sales if prelisting gigs were popular, and I have considered marketing them to the FSBO crowd as a way in the door, but for now I'm gonna pass. Tom Quote Link to comment Share on other sites More sharing options...
Scottpat Posted March 23, 2010 Report Share Posted March 23, 2010 Most of the home inspector warranty programs are not worth the paper they are written on. I think AmeriSpec offers a warranty on their inspections, is this the franchise? Don't worry about the loss of an inspection, it is going to happen regardless if you have a waranty or not. When I'm asked about a warranty I tell the caller that they can take one out through their agent, get the seller to provide one or get one online that will cover the home for a year. Quote Link to comment Share on other sites More sharing options...
Marc Posted March 23, 2010 Author Report Share Posted March 23, 2010 Most of the home inspector warranty programs are not worth the paper they are written on. I think AmeriSpec offers a warranty on their inspections, is this the franchise? No. House Call USA. Based in Metrairie, near New Orleans. Marc Quote Link to comment Share on other sites More sharing options...
Scottpat Posted March 23, 2010 Report Share Posted March 23, 2010 Most of the home inspector warranty programs are not worth the paper they are written on. I think AmeriSpec offers a warranty on their inspections, is this the franchise? No. House Call USA. Based in Metrairie, near New Orleans. Marc Never heard of them. Looks like they have sold 4 franchises, I would call them more of a local or regional company. They are also touting home foundation level surveys as one of the benifits as well. I think another franchise does that as well, is it Home Pro? It is what it is, I would not worry about them. They are trying to be the one stop shop. Quote Link to comment Share on other sites More sharing options...
Marc Posted March 23, 2010 Author Report Share Posted March 23, 2010 I appreciate the responses from all. I've been thinking it over....In many states, the inspector is required to brief the client on just what a home inspection is before they sign the contract. What's covered and what's not. So why is it that the inspector can sell them a warranty but there's no requirement that they make it perfectly clear to the client just what the limitations are. One such warranty doesn't cover the roof, any framing or other building component other than the three systems - HVAC, plumbing and electic. Clients are being mislead by inspectors looking after their own pocketbook. Marc Quote Link to comment Share on other sites More sharing options...
Jim Katen Posted March 23, 2010 Report Share Posted March 23, 2010 I appreciate the responses from all. I've been thinking it over....In many states, the inspector is required to brief the client on just what a home inspection is before they sign the contract. What's covered and what's not. So why is it that the inspector can sell them a warranty but there's no requirement that they make it perfectly clear to the client just what the limitations are. One such warranty doesn't cover the roof, any framing or other building component other than the three systems - HVAC, plumbing and electic. Clients are being mislead by inspectors looking after their own pocketbook. And there's the answer to your problem. Several years back, there was a local inspetion outfit that offered a warranty with their inspections. When customers started asking if I offered a warranty, I'd explain that I didn't, then I sent them a copy of the other guy's actual warranty, including all of the exclusions & disclaimers. They usually came running back to book with me. If you're uncomfortable with that, you could send them to the URL that includes the damning information. Alternatively, you could ask some leading questions: * That sounds great! I hope is isn't one of those scams, though, where the warranty really doesn't cover anything. * Exactly what does this other fellow's warranty cover? * Oh, the details of the warranty aren't posted online? I wonder why. You don't suppose that he's afraid to show it to you upfront because you'll be put off by all of the fine print that takes away the rights that the large print seemed to give you? * Scam? No, I wouldn't call it a scam. I'm sure that he has the best of intentions. All that fine print is probably just stuff that the lawyers made him put in there. - Jim Katen, Oregon Quote Link to comment Share on other sites More sharing options...
Marc Posted March 23, 2010 Author Report Share Posted March 23, 2010 Excellent suggestions for my secretary. She felt inadequate when that call came in. I'll forward them to her. Thanks Jim. Marc Quote Link to comment Share on other sites More sharing options...
Terence McCann Posted March 23, 2010 Report Share Posted March 23, 2010 And there's the answer to your problem. Several years back, there was a local inspetion outfit that offered a warranty with their inspections. When customers started asking if I offered a warranty, I'd explain that I didn't, then I sent them a copy of the other guy's actual warranty, including all of the exclusions & disclaimers. They usually came running back to book with me. If you're uncomfortable with that, you could send them to the URL that includes the damning information. Alternatively, you could ask some leading questions: * That sounds great! I hope is isn't one of those scams, though, where the warranty really doesn't cover anything. * Exactly what does this other fellow's warranty cover? * Oh, the details of the warranty aren't posted online? I wonder why. You don't suppose that he's afraid to show it to you upfront because you'll be put off by all of the fine print that takes away the rights that the large print seemed to give you? * Scam? No, I wouldn't call it a scam. I'm sure that he has the best of intentions. All that fine print is probably just stuff that the lawyers made him put in there. - Jim Katen, Oregon Cynic... Quote Link to comment Share on other sites More sharing options...
Tom Raymond Posted March 23, 2010 Report Share Posted March 23, 2010 Is HWA a sponsor or paid advertiser? I hope Jim didn't offend a sponsor[:-dev3] Tom Quote Link to comment Share on other sites More sharing options...
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