Home warranties have been a part of real estate transactions for about 40 years, but how much do you really know about them?
According to Amanda Wood, a home warranty is a limited service contract designed to address common malfunctions in systems and appliances in the home and provide repair and replacement options.
If your water heater blows up one day after you close escrow, for example, home warranty companies have to make sure they apply coverage appropriately and verify that the water heater failed due to normal wear and usage during the term of the plan instead of some pre-existing issue. Realtors typically include their buyer’s request for a home warranty in the purchase contract, and it’s common for the seller to pay for that home warranty, though that can depend on the state of the market.
A seller can also get a home warranty when they list their house. A seller’s warranty provides coverage for the seller during the days they have the property listed and in escrow. In essence, this gives the seller peace of mind and budget protection. It can also help distinguish your home compared to other similar homes on the market and help it sell quicker and for a higher price.
Generally, the coverage costs less than $1 per day and extends from low-end repairs like a leaky faucet to more higher-end ones like a whole HVAC system.
If you’d like to know more about the different types of coverages available, whether you’re a buyer or a seller, you can contact Amanda by phone at (800) 282-7131 ext. 1210 or email her at email@example.com.
If you have any other questions, feel free to give us a call or shoot us an email. We’d be happy to speak with you.