Whether you are a home buyer or selling your home and buying another, a home warranty offers peace of mind before, during and after the real estate transaction.
As a seller, a home warranty will protect your home when it is first listed, until it gets sold, through closing, and then transfer to the buyer and provide a full year of home coverage. Some real estate agents believe that a home that includes a warranty will sell faster and for a higher price.
The cost of a basic home warranty averages $400 to $500, with extra protection available for another $100 to $300.
Buyers may rely on a home warranty to pay for repairs that are needed during the first year of owning their home. Sellers sometimes offer a home warranty as an incentive to buy their home.
In some cases, real estate agents will purchase a home warranty for their buyers as a settlement gift. Additionally, some agents might provide a free home warranty for their seller clients when the property is first listed.
A home warranty is especially valuable for sellers when selling a home with older appliances and mechanicals. It will provide protection while the home is on the market, and it will offset potential costly repairs.
Once again, the warranty might be transferred to the new buyers to protect them as well.
What a home warranty covers is based upon what is stated in the specific home warranty policy. While home warranties cover the cost of repairs, they might not be enough to replace an item that is worn out and no longer working. Additionally, when appliances or systems are repaired, you will be required to pay a service fee of $50 or $75.
Most home warranties will cover:
- Oven, dishwasher, garbage disposal, and built-in microwave
- Kitchen and bathroom plumbing
- Water heater and ceiling fans
- Heating and electrical system components
- Additional coverage may be added for air-conditioning systems, refrigerator, washer and dryer.
- Want to know more about home warranties? Simply search “home warranties” on the Internet or ask your favorite Realtor when you are thinking about selling or buying a home.
Larry Stoller is a real estate consultant and advertising executive who loves living in Bluffton and helping real estate agents and sellers get homes sold.