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If you're in the process of buying or selling a home, you should consider including a home warranty. A home warranty covers the repair and replacement costs for appliances and other systems that break down in the home. It can be purchased by either a home buyer or current homeowner, and is often paid for at closing.
How it helps sellers?A home warranty makes a seller's home more attractive to potential buyers, especially if the home includes appliances and other items that are older. A warranty might give the seller an advantage over another home that is similarly priced and desirable to the buyer. A warranty can assure the buyer that they will be covered if something stops working after the closing. The price of a home warranty is minimal. Typically the warranty is paid for at closing so the sellers will not have to pay anything out-of-pocket until the home sells.
How it helps buyers?A home warranty can give buyers peace of mind. These individuals have just made a major purchase and oftentimes are strapped for cash. Facing unexpected repairs down the road can be a burden. A warranty can alleviate that worry. Oftentimes a seller will include the warranty as part of the purchase price; or the buyer can get one on their own. Or, they can arrange to split the cost with the seller. A home warranty can help protect the buyers from the costs of major repairs.
Facts about Home Warranties?Most home warranty policies are effective for one year from the date of purchase. They come with an option to renew coverage upon expiration, but be aware that the renewal cost is often higher than the fee paid for the initial policy. Standard coverage can differ quite a bit by provider, so do your homework. Many standard home warranties cover plumbing, appliances, and heating and cooling systems. Some policies will also cover the roof. Typically you will have to buy extra coverage for high ticket items, such as private wells and septic systems.
Labels: home buyer, home warranty, Real Estate, seller