Home Warranties Benefit both the Seller and the Buyer

Home Warranties Benefit both the Seller and the Buyer

One of the most important aspects in maintaining a home is keeping things fixed around the house. When something goes wrong with the plumbing, electrical, the heating and air system, hot water heater or septic system, it costs a lot of money to repair. No one looking for a house to buy wants to buy what they think is their dream house, only to have some major home failure happen within the first year of their home ownership. If you are selling your home, you sure do not want the buyer to come back on you for its repair costs after the deal closes. You want to be able to walk away, free and clear of all responsibilities on that home. Sellers can protect themselves by purchasing a home warranty. Not only will it protect the seller, it protects the buyer, and it also makes the home more desirable to interested buyers.

Home warranty policies typically cover the cost of certain major home repairs. A home warranty relieves the seller from financial responsibility. It also relieves the seller from incurring unexpected repair expenses on a newly purchased home. A major home failure is often the cause for heated debates between the buyer and the seller over who is financially responsible for the repair bill. The entire scenario is completely avoidable if there is a home warranty in place. However, major repair bills are only covered by a home warranty policy if the failure occurs naturally. In other words, the failure cannot be due to improper installation, code violations, or deliberate damage, etc.

Sellers can include the price of buying a home warranty in closing costs. The home seller can also defer the payment for the policy until after closing. That way if something does go wrong with the home after the sale, the warranty policy covers the cost for large repairs. When included in closing, the buyer pays for the policy. These types of warranties give both the buyer and the seller peace of mind about unexpected major home repair bills. Before home sellers buy a home warranty, they should make sure that they understand the policy and what it covers. Also be aware of exclusions of certain repairs listed in the policy. It is best to do some comparison shopping before purchasing your warranty so you can decide which policy fits your needs the best.

There are different types of plans to consider. For instance, some home warranty companies only cover plumbing. Others only cover electrical systems. Then again, there are other companies that cover a whole list of things that can go wrong with a home. The more things covered the better. Look for a policy that covers water heaters, heating and air systems, electrical and plumbing systems, etc. There are even plans that cover appliances, such as dishwashers, hot water heaters and ceiling fans. If you are a new home buyer, you can also buy a home warranty plan on your own. Just be sure to read reviews and compare prices on the different plans available today.

 

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