Jump to content

Warranty sales by HI's


Marc
 Share

Recommended Posts

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

Link to comment
Share on other sites

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

Link to comment
Share on other sites

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

Link to comment
Share on other sites

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.

Link to comment
Share on other sites

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

Link to comment
Share on other sites

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.

Link to comment
Share on other sites

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

Link to comment
Share on other sites

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

Link to comment
Share on other sites

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...

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...