A home is an an asset and one of the most important ones to own. Whether you are in a situation where you are purchasing a home or selling a home, home warranties can be a good way to protect your investment. A home warranty is a policy that homeowners can purchase that will cover certain appliances and systems in the home. It is not to be confused with homeowners insurance which covers the house itself and your personal items and property.
For Sellers: As a seller, when you you list your home, you are in an important period of time where the quality of your home is important to maintain. You need to keep it in good working condition to sell but also trying to keep your finances healthy for the purchase of your new home. The warranty protects any unexpected issues with the home that may arise. These protect not only your finances but it also gives your listing an edge! You can offer a home warranty in your home purchase as an incentive. It makes an older home more attractive to prospective buyers.
For Buyers: As a buyer, investing a large amount of money in a home to purchase it and then having to fork over more money on repairs is the last thing you want to do. If you are a buyer purchasing new construction, the builder will often offer a builder’s warranty on your home. This will cover various items from siding to roofs. The items included in the warranty are covered for different periods of time. For example a roof is often under warranty for 10 years but siding may be covered for only 1 year. A reputable builder will almost always offer a good home warranty.
If you are purchasing an existing home investing in a home warranty can be a great way to protect your finances and put your mind at ease. A home warranty is a good idea for those buying foreclosures or short sales. Home warranties usually start at about $300 and top off at almost $1000. Pricing depends on what you want covered and how long you want it covered for.Major systems in the home such as HVAC, electrical and plumbing are included. Appliances like refrigerators and stoves are covered as well. Builder’s warranties will also include siding, trim, flooring and other like items.
Generally home warranties are good for 1-2 years. Some sellers who purchase home warranties, choose to have the policy last for only the time that their home is listed on the market. Other sellers may choose to offer it to buyers as an incentive. In this case, they would extend the warranty to a year or two past the home purchase date.
For new construction purchases and builder’s warranties, various items are under warranty for different lengths of time. It is always important that no matter what type of home or warranty your are choosing, to always read the policy carefully. Knowing what and for how long things are covered is crucial to making the most of your warranty.