Buying a home is a big investment, and it is wise to consider what, if any, warranties are in place on the home you are about the purchase.

When Purchasing a New Home: Typically, warranties for newly built homes offer limited coverage on workmanship and materials to components such as windows, appliances, heating, air-conditioning, plumbing, electrical and major structural for a specified periods.

When Purchasing a Resale Home: The builder warranty coverage may have expired for some or all of the components depending on coverage time provided by the builder so you'll want to know what is and is not still covered.

If you are purchasing a resale home with limited or no builder warranty in place, there are companies that provide a residential limited service plans referred to as "One-Year Warranties" These service programs cover the repair or replacement of many of the most frequently occurring breakdowns of home system components and appliances due to normal wear and tear.

For a fee ($299-$500), these home warranty plans go into effect on the day of close and can be paid for by the buyer but are commonly paid for by the seller as part of the purchase contract agreement. During the service plan term, the buyer will pay a small fee ($45-$65) for each service call incident. This is minimal compared to what you might otherwise pay for repairs without the service plan in place

Here are some buyer advantages to having a home service plan:

• Contract terms are for generally for 1 year and renewable yearly
• You are covered for unexpected home repair or replacement costs on many of your home's major systems and appliances
• Coverage is regardless of the appliances' age, make or model
• If it can't be fixed, it will be replaced*
• It only takes a phone call and a small service fee to fix the problem
• The warranty call center maintains a list of contractors for service calls

*Additional charges may apply to specific repairs and replacements.

Additional or optional coverages for items such as kitchen refrigerator, washer/dryer, air conditioning, pool and spa equipment and limited septic and roof leak repair are available for purchase for an additional fee and initiated by close date of home.

A home warranty plan should not be considered as an alternative to having the property inspected by licensed professionals. System defects discovered during the home inspection won't be covered by a home warranty plan. These repairs should be negotiated between the buyer and seller prior to closing.

Don't confuse homeowners insurance coverage with Home Warranty Plans - Homeowner's insurance policies cover damage as a result of accidents and external forces, such as weather (including lightning), earthquakes, and fire, while Home Warranty Plans cover internal defects from normal wear and tear during the contract term.

If your relocating or already here and would like more information about our area or assistance in buying or selling a home, I welcome your call or email.  I know and specialize in Austin, Round Rock, Pflugerville, Cedar Park, Leander or Hutto. 

Karen Staha, CRS,GRI,ABR, REALTOR - Selling Texas Since 1995 - Gaston & Sheehan Realty - Call me direct: 512-217-2435 email: kmstaha@aol.com website: www.karenstaha.com