Friday, June 13, 2014
Warranties vs. Guarantees
First off, I will apologize for the pause in posting. The last couple of weeks have been very busy. Part of the reason for that has been the announcement of the new "We'll Buy Your Home" Guarantee by InterNACHI. Anyone who has owned a home is probably familiar with the traditional home warranty programs, and many have probably had one at some time. If you aren't familiar with these, they are often offered as part of a home sale to cover major systems for a set time after closing. Many home inspectors also offer warranties as a part of their inspection package. Of course, these come with all kinds of exclusions and deductibles.
As an example, I had an A/C unit break down, and when I called the home warranty company (one of the biggest) I was told that they wouldn't replace it, but would instead exercise their cash-in-lieu option (They pay me what they think they could get it replaced for, and I get it replaced). How much did I get? $700. How much did I pay to have it replaced? $6900. And nothing I could do, except cancel my policy with them.
So, why do I tell you all of this? Basically, warranties are planning for failure. The home seller knows that something will probably go wrong, so they try to assuage you fears, and cover their liability, by offering the home warranty.
On the flip side, a guarantee is planning for success. We are very confident in our inspections. So much so, that InterNACHI has agreed to back us up on that with their "We'll Buy Your Home" Guarantee. If we miss something that we should have inspected per the standards, InterNACHI will buy the house back from you at the price you paid, and it's valid for 90 days after closing.
So, one final question, why would you have an inspection done by someone planning to fail?
To schedule your home inspection backed by the best guarantee in the industry, call 210-202-1974 or book online at www.vhillc.com.