Barb's Home Warranty Guide

Home Warranty Guide

There are several types of home warranty available for your home. Although similar, there are some significant differences. Here are some facts regarding home warranties:

A home warranty can be purchased by anyone involved in a transaction, including the buyer, the seller, or the Realtor.
If purchased by a seller, it will cover the home while it is on the market, as well as after closing. There are limitations in the coverage during the sale period and the policy should be reviewed so the seller is aware of them. Such items as built-in appliances, hot water heater, plumbing, and the electrical system may not be covered. Should an item that is covered by the warranty program fail during the listing period, it would be eligible for repair or replacement with a deductible owed by the seller.
Programs differ in several ways and should be chosen based on your comfort level and budget. Variables include:

Deductible amount

How the age of an appliance affects coverage

Which appliances are covered by the warranty

The fee for the plan is usually paid at closing, so no money is paid towards the cost of the plan until the property is sold (except for deductibles due on repairs during the listing period).
A buyer can purchase a home warranty if a seller chooses not to provide one. Warranty periods range from twelve to fourteen months. Some plans have renewable options that apply if the owner wishes to extend the warranty coverage.
Once a seller agrees to provide a home warranty, the warranty cannot be negotiated out of the purchase agreement.
Many home warranties have a "pre-existing condition" clause that excludes repairs performed in the thirty days immediately following closing.

A home warranty will make any transaction smoother by easing everyone's natural concerns about the appliances in a home. Statistics have shown that homes with warranties tend to get higher prices than homes without a warranty. Please contact Barb for a list of sources of home warranty coverage.