A Home Warranty has many benefits for both buyers and sellers. Here are some important points to consider.
Home Buyers:
•Plan now, save later and help eliminate worries
•An unexpected breakdown can be devastating to your budget
•Enjoy your new home without the hassles of covered breakdowns
•Call most warranty companies 24 hours a day, 365 days a year to request service
Buying a new home is an exciting experience. It's also a large investment. That's why you protect it with homeowner's insurance, but what about the items not covered by insurance? A Warranty is a service contract that covers the repair or replacement of many of the most frequently occurring breakdowns of home systems and appliances. When a covered breakdown occurs, just call your warranty company and allow them to handle the rest.
Home Sellers
•Helps improve home's marketability
•Provides Good value
•Helps protect home during the listing period
•Can reduce after-sale liability
A Home Warranty can help you sell your home by giving buyers additional confidence in the real estate transaction – they'll know that a warranty stands behind the covered systems and appliances in the house. In fact, including a home warranty is one of the most constructive and economical methods of helping to achieve a home's asking price. Another bonus is that most warrantys can also protect your home while it's on the market.
Always read your warranty contract coverage carefully and make sure the important things you want covered are listed there. Note, some of our clients get warranty's to cover the problem, but then not the clean up work to replace the sheetrock, match the trim, paint colors etc...Deductibles are usually required. For example, say you have a $400 fix, you may be required to pay $100 deductible then the rest is taken care of. Again, read your policy thoroughly. Most warranty companies also have partnerships built with particular vendors in your area. So if you call your favorite vendor first to fix the problem, the warranty company may not cover the majority of the cost if any. If you have a problem with your home that you think could be covered under the warranty program, call the Warranty company FIRST! If they don't have a licensed contractor in your area they may then allow you to call your preferred vendor at that point. Its ALWAYS worth the savings to call the warranty company first to atleast ask the questions.
(Partial excerpt from American Home Shield, partial Agent based)