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Article rating : 5.00, 1 votes. Author : Cecilia Sherrard
What is a Home Warranty?
It is a 1 year service contract that helps protect homeowners against the
cost of unexpected repairs and replacements of covered major systems
and appliances that break from normal usage.
What Does a Home Warranty Cover?
- Water heater
- Heating system/Cooling system
- Plumbing system
- All major appliances
- Electrical system
What it Doesn't Cover
- Roof
- Doors & Walls
- Items not built-in
Optional Warranties
- Roof
- Well pumps
- Swimming pools, spas
A warranty normally excludes pre-existing conditions, such as items that
are
not in working condition when coverage is put in place.
Where can I get One?
Your REALTOR can provide you with the company information.
Many times a seller pays for and provides the coverage to the buyer as
part of the transaction.
Ask for a "seller provided" warranty when making an offer on a house.
Many buyers purchase them for their own protection.
How Much Do They Cost?
The cost for a basic one-year home warranty ranges from $325 to $425.
Optional coverage is per added item, such as pool, spa or well pump.
Each contract calls for a deductible payment or service call fee from the
claimant directly to the repair contractor. This fee is usually $50 to
$100.
The warranty company picks up the cost of repair above that amount.
Home warranties
have proven to be well worth the cost of coverage.
As a buyer, use it as a negotiation tool in a purchase contract.
Why a Home Warranty
Sellers: A Home Warranty provided by the seller will be viewed as a
benefit to the buyer. Adding a home warranty to your listing adds
confidence and might result in someone purchasing your home over a
newer home. Many people are nervous about old appliances and
fixtures. Buyers are much more comfortable with a house that includes a
one year warranty. The warranty can be promoted in the advertising as
a drawing feature of the home.
It protects you should something go wrong after the buyer moves in. If
a covered system or appliance repair is needed, the Buyer calls the
warranty company, not you!
This after-sale liability protection is well worth the cost of coverage.
Pay at Closing
There is no charge to the Seller until closing. It is typically paid through
escrow.
Cecilia Sherrard is a full time dedicated Realtor in Northeast Ohio. With
years of experience and knowledge, she has maintained a multi-million
dollar producer status. Servicing areas such as: Westlake, Lakewood,
North Olmsted, Rocky River, Cleveland, Brook Park, Parma, etc. Visit her
website at http://www.youshouldown.com
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