WHAT IS A HOME WARRANTY AND HOW DOES IT WORK?

WHAT WILL IT DO FOR ME AS A BUYER?

A home warranty can give a purchaser peace of mind.  If anything catastrophic happens in the house, you are only financially liable for the deductible.  So if the furnace goes out one evening and you just can't get it going (as long as it is maintained and not abused) you would call the warranty company and they would send out a technician to fix/repair/replace the furnace depending on the problem. So yes, if the furnace did indeed blow up (heat exchanger) you would get a new furnace of comparable quality.  You cannot choose the technician or company involved but for years my clients have used these warranties with no problems.  You just have to give up a little control with that extra peace of mind.

What if the house is a disaster?  Foreclosure?  You can only guess from the home inspection how the systems and appliances were previously treated. In some homes it is completely obvious that they haven't been maintained at all!  The particular system or appliance must be in working order as of the closing for the warranty to cover that particular item.  So if you purchase a home where the dishwasher is not working or cannot be fully tested, the dishwasher would be excluded.

WHAT WILL IT DO FOR ME AS A SELLER?

It can offer the buyer peace of mind and bolster their faith that all the appliances and systems in the house can be repaired if anything does go wrong. The nominal deductible seems very reasonable when a service charge alone is usually double the deductible. Normally I wouldn't suggest this if you have a new furnace or this is a newer home.  The perfect selling solution for a home and a warranty is where the furnace is around 10 years old and all the appliances have been well maintained and cared for but varied ages.

As a seller, your home would be covered as of the listing day thru the closing day. Then the warranty would transfer on to the buyer at closing and then continue for that full year.  The warranty is paid for at the closing.

Currently these two companies are RE/MAX Benefits Partners which lets me offer you a reduced price on warranty policies given thru my company for listing or buying a home thru me.  Depending on the sized home and features covered this can be up to a $750 value.

Possible Savings:  AC or Heating System $1250 to $5000

Washer or Dryer   $200 to $1000

Stove $500 to $1400

Refrigerator $600 to $1200

Water Heater   $375 to $800

Home Component Life Expectancy Article

A home warranty is a service contract, normally for one year, which helps protect home owners/home buyers against the cost of unexpected covered repairs or replacement on their major systems and appliances that break down due to normal wear and tear. Coverage is for systems and appliances in good working order at the start of the contract.

Check each home warranty policy from each company to see which of the following items are covered and which company you prefer. Also find out if the policy covers the full replacement cost of an item.

• Plumbing
• Electrical systems
• Furnace
• Water heater
• Heating ducts
• Water pump
• Dishwasher
• Garbage disposal
• Stove/cooktop/ovens
• Microwave
• Refrigerator
• Washer/dryer
• Swimming pool (may be optional)

  Deductibles are usually $55 - $75 - $100 depending on what plan you select for 'EACH' occurance.

HERE ARE TWO RELIABLE COMPANIES THAT OFFER POPULAR PLANS FOR YOU TO CHOOSE.

Show me what Home Warranty of America Offers

Globe Warranty Coupon

Show me what Globe Home Warranty Offers

Lyn Sims (847)230-7324 at RE/MAX Suburban

I proudly serve and sell real estate in the Northwest Suburbs of Chicago.  If you are thinking about purchasing or selling your home in the communities of Elk Grove Village, Schaumburg, Hoffman Estates, Roselle, Palatine, Medinah, Itasca, Bloomingdale, Carol Stream, Bartlett, Hanover Park, Streamwood, Elgin, South Elgin, St. Charles and more importantly, want to work with a local area expert, contact me immediately.