What is a Home Warranty?
The term “home warranties” can refer to a number of different types of warranties. When buying or selling a home, different types of home warranties can provide benefits to buyers or sellers – and sometimes both. For sellers, a home warranty increases the perceived value of their home by providing an extra incentive. For buyers, a home warranty purchases a little extra peace of mind.
A home warranty is sometimes purchased independent of a real estate transaction by a homeowner simply wanting extra protection in the event of appliances breaking down or other issues that can come up in a home that are not protected under standard homeowners insurance.
However, sometimes home warranties are supplied by the real estate agent hired to sell the home and protects the seller in the event an appliance breaks or other pre-existing, undetectable defects cause havoc during the listing. With each new listing, I provide Sellers a home warranty program that provides coverage from the time the home is listed to the time the home sale is closed. This program is especially valuable to Sellers who are not living in the home at the time and not physically present to discover problems that may arise and need repairing or replacing. For Buyers, the home warranty coverage extends for 1 year from the time of purchase. The coverage provided with the warranty covers a number of items from heating, A/C to water heaters, appliances and plumbing.
In some cases, the eventual homebuyer may choose to extend this warranty once the property changes hands. Covered items vary widely on these types of warranties, so it’s a good idea to carefully review the warranty to be sure you’re receiving the coverage you need. In many cases, after-market warranties can be created from an “a la carte” menu, allowing you to select the coverage most important to you.
Be clear on the exact resolution process when a problem arises with each covered item. For example, if the fridge breaks down, what is the process for getting it fixed? Regardless of the type of warranty, there’s no doubt that they are an excellent tool to build trust and comfort between buyers and sellers.
For more of the nitty-gritty details on home warranties, give me a call at (425) 644-2933 or send an email to firstname.lastname@example.org. Let me show you how to use this strategy to your advantage.