here is my story for my clients that don't want an inspection or the home warranty:
You remind me of our good client John. He is a young sailor who wanted to buy his first home. He didn't qualify for much in our area. Less that 150k. But if we worked hard, and negotiated hard, we could get him a nice condo. Which is what he wanted. We did work hard and we negotiated hard and we found him that condo that he loves!!
Fast forward to today. John calls and says Ma'am, the air conditioner in my condo doesn't work, and in fact, has never worked. Doesn't the last owner owe me a working a/c since it was advertised with air conditioning?
I told him let me pull his contract so I can refresh my memory of our transaction that happened over 6 months ago. Yes, he is calling me today to ask me about the a/c. I look it up and call him back.
John, I say, I can see where you waived getting an inspection. Remember the conversation we had about getting an inspection and what it would cost you? Yes, Maam. But John, you decided that you wanted to save that money against my better judgement and advice, do you remember me telling you that it was well worth your money to have one? Yes maam. But you decided not to. So, no one knew that the a/c wasn't working in the middle of winter. I certainly didn't. I am not an a/c person, nor am I an inspector.
But the owner should owe me. No, john, remember that disclaimer that you signed? Remember how I went over that with you, and said the owner is telling you that he is making NO representations as to the status of anything in the home and you have the right to inspect. I even told you that we are in a Caveat Emptor state... Buyer Beware. Remember when I told you that? Yes Ma'am, I remember those words. Great. That is also when we discussed having an inspector and you waived that right. It is right here on the contract with your signature. yes ma'am.
Now, on to the home warranty. Remember how we talked about getting a home warranty and what it would cover? Yes Ma'am. Well you asked the seller to pay your Closing Costs, including the home warranty, up to XXXX dollars. You have that in your contract, right? Yes ma'am. But when it came time to close, your Closing Costs plus the home warranty would have cost you about $200. So, you choose to waive the home warranty to save that money. Remember that? Yes ma'am. You decided to save your money because those Home Warranties are "scams". Do you remember telling me that? Yes, ma'am.
John says to me, but isn't it a scam that the owner won't give me air conditioning now since that machine was so old? No. You negotiated a very good price on a home, with some very good closing costs as well. You opted to save a few hundred dollars. You now own the home along with any home repairs that need to be made. You are not a rentor anymore. You are a home buyer that is responsible for your own home. And you also get the appreciation for that home.
I couldn't have been more forceful about the inspection and home warranty, but John was making the decisions. I didn't like his decisions and let him know, but I can't save everyone. I still know that he got a VERY good price on a Very nice condo. And I know we looked out for him. And I do wish he would have taken our advice.
Now, Mr. and Mrs. Home Buyer, are you sure you wouldn't like that inspection and/or home warranty?
How could I reconstruct all of that after 6 months? I have all the disclosures and disclaimers signed, including waiving the insurance and the home inspection. I also use scripts. Every home buyer and every home seller gets a version of the script. I even tell them, you may not want to hear this, but I am going to say it anyway, so no one can tell me later they didn't know. Are you alright with that? I also keep notes and log's of conversations. Could you reconstruct this scenario for your clients? Are your keeping the records? And feel free to use this story for your next buyers.... John is having to buy a new A/C today....i hate that he is having to do that, but it is reality. By the way, John is a good guy and still loves his condo. He couldn't be happier with his decision to purchase he told me before hanging up. He just wishes it has A/C!!!
Shelly