Cash Buyer REO

There are few consumers in the market place today who would buy a bank owned property with cash (or otherwise) and not get an after-market home warranty to protect them from unexpected equipment failures. Purchasing a home warranty is essential and the smart thing to do. We recommend anyone purchasing a resale home to get a home warranty.

But understand that although home warranty companies are very eager to accept your money and provide you with a home warranty policy they are often very “resistant” to pay out for repairs. This is especially true when they believe the issue you wish to have repaired existed prior to the policy being activated. Many times the issue may not have existed prior to the buyer taking title to the home but the home warranty company will deny the repair because they assert it is a pre-existing issue. If you have nothing to demonstrate the prior condition of the property then you have very little recourse in the matter. In this situation you can generally count on paying for the repair yourself. The law in Nevada is “Caveat Emptor” or “Buyer protect thyself”.

It needs to be said that there are some real estate agents who will tell their buyers not to worry about a particular issue found during the course of the inspection because the home warranty company will take care of it after they close on the home. This advice is not only unethical but illegal and is one of the reasons that the cost of home warranties have climbed over the years. It is also one of the reasons that home warranty companies are resistant to correcting legitimate issues. A home warranty is a very beneficial service available to consumers but they should be used, not abused.