One of the things that I almost always recommend that Buyer ask for when they make an offer on a home is for the Seller to provide a Home Warranty. Unless the home is just newly built and therefore covered by the builder or manufacturers warranties for major components, then it makes sense to have a home warranty policy to provide peace of mind and protection against a costly repair. A Home Warranty doesn’t cover everything about the home. It typically covers the furnace/AC, water heater, plumbing, electrical system and appliances. The cost is about $375 for a one year policy and there is a deductible amount for each repair or service call. Typically the deductible is $100 but that amount as well as the cost of the policy itself and what specifically is covered varies between warranty companies.
A sellers offer to provide a warranty is useful tool to help sell the home too and may help to bring a higher price for the home. Or it will just help to effect the sale in general because Buyers feel less skittish about the condition of the home and components there. Also, the Seller can ask for the policy to begin at the start of the listing term with no cost to them so that if anything that is covered breaks, the only thing they pay is a deductible amount. They don’t need to pay for the policy until final closing. So it’s a win-win situation for the Seller. The home is covered during the marketing period and afterwards too for the Buyer.
If you enjoyed this post, you may also be interested in:
