The Merits of Home Warranties for Buyers and Sellers
So much hassle and worry can be taken out of home ownership by a home warranty. It can also be a very useful tool when you sell your home too.
Unforeseen expenditure due to the failure of plumbing, an appliance or heating/air conditioning system, for instance, always seems to occur at the most financially inopportune moment.
And concerns over sudden expensive home maintenance problems may act as a disincentive for some would-be first time home buyers, who previously expected such problems to be taken care of by their landlord. They are naturally anxious to avoid unwelcome and unavoidable bills that could create havoc with marginal finances, especially in the first few months after the expense of getting on the home ownership ladder.
There are a wide range of products and levels of coverage on the market, but home warranties can basically be viewed as insurance policies. Usually for a regular monthly outlay, they provide protection against all the typical things that can go wrong with HVAC systems, plumbing, appliances and electrical problems etc., etc. Even swimming pools and hot tubs can be included additional options.
While they inevitably involve some regular expense, the key advantage is that homeowners can rely on a predictable and relatively very low figure for repairs, or complete replacement of items in many instances.
There is generally a nominal service charge for investigation of a problem, but this is always going to be much cheaper than the usual high costs of hiring independent specialists.
A home warranty is also becoming more widely recognized as a great home selling tool. Sellers offering a warranty with their home can create a very positive impression with potential buyers, who may be more attracted to the property, as they will be able to control costs in what are often the most economically sensitive few months as they settle in. And they will always have the ability to continue with the warranty after the expiration of the period the seller has taken coverage out for them.
If the seller doesn't offer a warranty as part of the purchase package, buyers can consider asking for one as part of negotiations.
Please don't hesitate to contact us to discuss how to use warranties to your best advantage, whether you're buying or selling.