Given that the bulk of sales in our area are either short sales or foreclosures, home warranties are becoming increasingly important.

Most short sales and foreclosures are sold "as is" meaning that the owner is not willing to repair any defects in the property. So, if the refrigerator doesn't work, too bad.

These are the properties buyers are snapping up and they're getting excellent deals. But it's a higher risk transaction and home warranties are one way to take away a little bit of that risk.

There are a couple of things to keep in mind if the seller is buying the home warranty, an increasingly common occurrence in this market.

Home warranties typically have basic coverage with options available for additional coverage. The additional coverage can cover things such as the roof, well and septic, swimming pools, etc. Depending on the property you're buying, it may make sense to consider purchasing the additional coverage yourself.

If the seller buys the basic coverage, most companies will allow the buyer 30 days to add additional coverage. Note that this is not meant to allow you to find problems and then buy insurance retroactively to cover them! So, the best way to do this is really at the settlement table.

When you're buying foreclosures or short sales, you should really have a home inspection before making an offer. But if you don't, a home warranty can be a very good investment!

For more information, check out my previous blog post on this subject.

Congress is working on its plan to stimulate the real estate market. But no one ever said the wheels of government turn with alacrity! And, I've never been any good at all at waiting!

So, here's my own little real estate stimulus plan!

If you're looking to buy a home, I'm offering a buyer's rebate program that's good for any ratified contracts between now and May 31st.

In addition, all buyers will receive a free home warranty.

If you're planning on selling your home, and you list with me between now and May 31st, I will pay for a home staging consultation and a home warranty.

If you'd like more information on either of these programs, give me a call at 800-851-1563 or e-mail me at Julie@JulieEmery.com