If you are in the middle of a home purchasing process, chances are you'll be encountering offers for a home warranty from your seller which is at times rolled together in the purchase agreement. Whether the home to be sold is new or not, a home warranty promises the buyer affordable fixing charges when one component of the home breaks down. Have you ever wondered if you really need this add-on during home purchasing? Read on to know more about a home warranty to help you decide whether you really need it or not.
A home warranty provides reduced fees for home repair and replacement especially when major home components such as air conditioning, plumbing, electrical or gas system needs them. Some warranties also cover repair of major appliances such as refrigerators, swimming pools or washers and dryers. Repair and replacement usually costs a hefty amount of dollars, especially when the house component concerned has been operating for a long time. Although home warranties do not cover all repair and replacement fees, some homeowners still opt to include home warranties in their purchase agreements because it can greatly reduce their overall cost of repair.
There are several benefits in availing home warranties, whether you are a first time home buyer or your house is not newly constructed. Some of these benefits include:
Homebuyers are protected against unforeseen repair and replacement bills. This is usually felt by homeowners who haven't started saving for an emergency fund or those who don't want to use them when the need for home repair arises.
Home sellers are protected against buyer complaints. When a major repair is seen by the buyer of a newly purchased home who happens to avail a paid whole year round warranty, the buyer won't have to complain to the seller about the repair since the home warranty already got it covered. However, it is still the seller's obligation to disclose to the buyer any identified issues of the home to be purchased even if a home warranty is purchased.
Homeowners don't have to search and negotiate with contractors to do repair and replacement. Homeowners don't have to undergo the painstaking process of searching and negotiating with contractors since the home warranty already identifies the contractor who will perform repair and replacement. This is most helpful when the homeowner is fairly new to the place and is not yet familiar with the performance of contractors available in the neighborhood.
Like with any other contract, a home warranty may not be the perfect solution to eliminate the risks faced by homeowners. It is important for every homebuyer to read and understand the home warranty contract to help them decide if it is really meant for them or not. If unsure, they can always seek the help of a real estate professional to provide them more information about the warranty and provide expert opinions as well.
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