Residential Service Contract?

Question

Is it a good idea to purchase a residential service contract? Why does Seller reimburse Buyer at closing cost for the cost of the residential service contract in amount not exceeding $350 if Buyer purchases a residential service contract?

Answer 1

Sounds like a Texas contract to me. Yes, it's a good idea - for the buyer, the seller and even for the Realtors involved. If something breaks (something covered) during the first year, the buyer calls the HOW company and gets it fixed. With no service contract, that same buyer might call an attorney instead. My guess is that it would not be as much fun getting it repaired that way.

I think (not sure) that the wording is that way to make sure that it's the buyer who is picking which contract he wants to have for the next year. Also, the dollar amount to be in that blank can be negotiated. About $300 to $350 is average. The buyer might choose to add upgrades to it, and pay for those himself.