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Your offer has been accepted... So, now what? Part V (Home Warranties)

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Real Estate Agent with Marcie Sandalow, Compass 301.758.4894

Your offer has been accepted... So, now what? Part V (Home Warranties)

Home WarrantiesWhat are they?  For approximately $400/year (for single family homes... less for condos/coops) you are covered (usually for a nominal service fee) in the event that one of your appliances or HVAC fails.  Some of the policies even cover roofing and/or swimming pools.  raining in the kitchenIn theory, they either repair it or replace it.  As a new homeowner, already stretched by your new mortgage, this can be a real lifesaver.

Who pays for it?  Depends.  In these trying times some sellers will offer up a one-year home warranty as an enticement.  If, during your inspection, a few items are revealed to be at the end of their life cycle (but still working) this might be something you ask for from the seller- either in the contract or as part of your home inspection negotiations.  Or, you can buy it yourself.

Why get a home warranty?  I can't help but think of my poor neighbors who within the first year of owning their house had to replace the washer, the dryer, the AC and the water heater.  A warranty would have saved them a bundle.  Hindsight is golden.  But like all insurance, it's painful to pay if you don't ever get a chance to use it. 

Part I of "Your offer has been accepted... So, now what?"  tackles home inspections and how they might play out in your home purchase scenario. 

Part II discusses financing and what to expect.  

Part III deals with settlement attorneys, and

Part IV covers title insurance.

Coming soon... Be on the lookout for "Your offer has been accepted... So, now what? Part VI" which will discuss final walk throughs.

Posted by

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Marcie Sandalow is a realtor with Evers & Company Real Estate, Inc. in Chevy Chase, DC.   
With 15+ years in the business, and a sharp understanding of her client's needs, she serves Buyers and Sellers
in and around Bethesda, Chevy Chase, Washington, DC, Kensington, Rockville, Silver Spring and Takoma Park. 

E-mail:  marcie@bccdcrealestate.com
Cell:  301/758-4894

Website:  BCCDCRealEstate.com and DCHouseSmarts.com

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Comments (3)

Todd Kevitch
InterContinental Capital Group - Boca Raton, FL
Mortgage Loan Officer - I get deals done!

Good to know. Also, some lenders are now offering Home Warranties included with their REOs.  Saxon is the first I've seen, expect others to follow.

Jan 31, 2010 01:39 AM
Jill Schmidt
Aurora, CO

I like how you broke it down for buyers.  Good idea for blogs for my website.

Jan 31, 2010 02:38 AM
Marcie Sandalow
Marcie Sandalow, Compass 301.758.4894 - Bethesda, MD
Bethesda Chevy Chase DC real estate

Hey- I didn't know that.  Thanks, Todd.

Happy to help, Jill!

Jan 31, 2010 07:43 AM