I recently sat down with a representative from American Home Shield home warranty company and was truly amazed at the value that it brings to both seller and buyer. Let me first start by showing what a warranty covers so that you will have that knowledge while you continue reading. This is a list, but may not be complete.
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The warranty is available to seller's, buyer / consumer's or both, meaning it could be purchased by the seller and then transerred to the buyer and doesn't have to be paid for until the closing. Can you say wow? The seller will be covered if something breaks and all they have to do is call AHS and AHS will arrange to send a repair person. AHS has a network of reputable repair people so you don't have to figure out who to call. Under the agreement, you pay for the service call which would be around $60 under the plan I talk about. There are two plans. The other you pay around $75, but you pay less for the warranty. I say "around" because from my brochure to the AHS website, it's different. There may have been a price change. Some places may be higher such as CT, MA, ME, NH, NJ, NY, RI, and VT where the service call fee is $95. So, the prices I give are the prices before me, but they may have changed. I am going by our Keller Williams / AHS brochure.
The plan that covers both buyer and seller is $465. The beauty of the AHS warranty to sellers is that if the buyer's inspector finds something wrong with any item covered by the warranty, then all you have to do is call AHS and they will arrange a service call to see about the item and if it's broken beyond repair then they will replace it. That is a great value and peace of mind. To cover a washer and dryer is extra at $80 and coverage of a pool and/or spa is extra at $160. A Seller / Buyer warranty covers the heat pump up to $1500 to the seller and up to $5000 when transferred to the buyer. I am totally sold on the value of a warranty.
A regular buyer or consumer homeowner coverage is $395. Condo buyer coverage is $355 and seller / buyer condo coverage is $420. All under the $60 service call plan. Note....if a seller has the seller / buyer plan and they decide to take their home off the market, then they are only obligated to pay $70 which releases them from their contract. I'd say not bad. Side note, permits are also covered.
With some appliances as expensive as they are, a home warranty can make a lot of sense...especially if you have older appliances or older home systems. As a selling tool, it has unmistakable value. A home warranty will take the hesitation from the buyer on any of the homes mechanics.
Also, signing up for it couldn't be easier Realtors. I called the 800 number and within minutes I had a warranty for my sellers.
I hope I have helped and enlightened you on the virtues of a home warranty. I know I am sold on them. A home warranty can easily pay for itself and may help sell a home.
For more information, visit http://www.ahswarranty.com/index.jsp
Read my other Blogs. I write some good articles :-)
Barry Smith, Realtor, St Petersburg, FL
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