Home Warranties, A Bust or A Must???
What is a home warranty? What does or doesn't a home warranty cover? Buyers always want a home warranty... Sellers tend to frown at the additional expense of a home warranty. What is my take? Well, if a buyer is going to ask for one, why not already take that out of the negotiation. Most home warranty companies offer sellers home warranty coverage at no money down until closing. That's right! Sellers get to choose their option plan and will be able to utilize the home warranty plan until closing. Upon closing, the plan is transferred to the buyers. Most basic plans start around $325.00 and go up from there.
Most standard plans cover a variety of items from: Heating systems, Air conditioners, Plumbing, Electrical, Central Vacuum and Appliances. Most home warranty companies also have plan limits and additional upgrades such as: Swimming Pool/Spa Equipment, Washer/Dryer, Well Pump and Septic Tank. If the sellers home is withdrawn form the market, there are typically no fees due to the seller unless they added an upgrade to the policy which included a non-refundable fee.
Home warranty plans help to protect your budget from unexpected and possibly expensive repairs. It seems like a win win to me. In today's buyers market, it is important to take as much of the guess work out of the home buying experience as possible. Some home owners choose to purchase a home warranty plan even if their home is not on the market just to have some protection against the "what ifs" of home ownership.
Home warranty prices and deductibles vary from company to company.
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