Whether you’re the seller or a buyer in a realty contract, you each share the same end goal: Finalize the sale! That’s why, as a seller, committing to pay for the first year of the home’s warranty is such a good idea in order to close on the contract with the buyer no matter what.
As the buyer, if your contract includes a home warranty, you can know that the seller is working in good faith, even despite the quirks of the house which are still apparent after the home inspection.
What Is A Home Warranty?
A home warranty is different than house insurance. Whereas insurance covers you in case of property damage, a home warranty helps you acquire repairs to any large appliances in your home. Although each policy has slight differences, a typical warranty includes coverage for:
– Kitchen appliances
– Air conditioning/heating units
– Laundry appliances
– Roof leaks
A house inspection points out age and working conditions of most of these items, but as a seller, a home warranty is beneficial to provide for the buyer if those repairs are not something you are ready to take on yourself before the sale is finalized.
Why Is A Home Warranty Beneficial?
Everyone knows a new home brings with it projects which can quickly add up. Even your dream home has a few quirks that will need to be fixed eventually! A home warranty lasts for 12 months and can be purchased at any time through the life of your mortgage.
Although home warranty plan prices fluctuate depending on where you live, plans typically cost around $75 a month. Renewing your coverage each year is a wise idea, but not required. Keep in mind that if the seller of your home purchased a year of coverage for you as the buyer, that only covers the first year.
If one of your appliances need repairing, you call the company supplying your home warranty, and they will send a registered technician out to assess the issue. Once that is done, you will only pay the service fee for the repairs to be completed. This fee is usually around $125.
Despite the fact that early on into owning your own home $125 doesn’t sound like pocket change, this is only a fraction of the cost which you would have to pay out of pocket otherwise. For comparison, a standard water heater replacement usually costs anywhere from $400 to $1,600. Home warranties can save you more money than you think!
Although home warranties are always a wise investment, make sure you know how old your appliances are when you first move into and/or sell your home. Most appliances come with a 1-3 year warranty which can also assist with the replacements or repairs of your appliances if they are still within that specific time frame.
Need Help Deciding?
If you’re still not sure whether a home warranty is right for you, it’s never a bad time to set up an appointment with an experienced realtor for advice. Kim Clark has several years of experience and knows the specific details you may not be aware of in regard to home warranties in Kosciusko County, Indiana. Make an appointment with her today!