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
- Which appliances are covered by the warranty
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.
- 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
- 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
- Many home warranties have a "pre-existing condition" clause
that excludes repairs performed in the thirty days immediately following
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