It's a familiar scenario these days in neighborhoods across the Austin area. A financially distressed home goes on the market. It might be a short sale situation or a foreclosed/REO home. It's likely a good deal for a prospective buyer, but the property has been vacant for while, the utilities have been cut off and the home does not look like it's been well maintained.
Mr.Super Agent, "Should a home warranty be included in this transaction?"
The answer is a resounding yes. Home warranties are particularly advantageous for foreclosure, REO and short sell transactions for numerous reasons. When the condition of home appliances and systems is unknown or questionable, an home warranty can add protection from expensive and time-consuming breakdowns for the buyer.
Complete and thorough home inspections on such properties may not be possible without access to utilities, making the condition of home systems even more uncertain. It's also a well-known, unfortunate fact that owners anticipating foreclosure may stop caring for and maintaining the property, leaving systems and appliances in precarious shape. In fact, buyers express more concern regarding financially distressed properties than any other type of property. A warranty alleviates many of these worries, and can offer budget protection to the buyer as well as to future resale buyers under the term of the contract. In short, a home warranty is one of the best, most cost effective investments a buyer can make to help preserve the value of an REO property.