The Advantages of a Home Warranty

Real Estate Agent with Fathom Realty,AR, LLC./Turn Key RE Group EB00053853

Whether you are buying new construction or an older home, purchasing a home warranty is always a good idea. What is a Home Warranty? A NWA Home Warrantyhome warranty is an insurance that covers repair or replacement of major appliances and household items that break down. Home warranties are good for one year and are available to both home buyers and current home owners. After a year, the home warranty policy can be renewed. With the help of a home warranty, a buyer can be sure certain items will be replaced or repaired at no additional cost. From household items to major appliances, paying for repairs can be quite costly. Major repairs are the last thing a homeowner wants to worry about. With a solid home warranty in place, however, homeowners can rest easy in knowing that repairs will be covered if they become damaged.

How Does a Home Warranty Work?
Most home warranties have the same reporting procedures, but a home buyer should do research on every company’s policy since their coverage may differ. Make sure to ask each company what items are specifically covered, which items are replaceable in case they cannot be repaired, and if upgrades are available.

Step 1 - Once a household item or appliance breaks down, the home owner calls the home warranty company and informs them of the problem.
Step 2 - The home warranty company calls one of its partner service providers.
Step 3 - The service provider sets an appointment with the home owner.
Step 4 - The service provider repairs the damaged appliance. If the item is beyond repair, the home warranty company may pay for a brand new replacement item and have it installed in the home. The extent of the coverage for replacing damaged items differs with each company.
Step 5 - The home owner pays a minimal trade service fee.

Items that are typically covered by home warranties include items that are usually built into the home:
- Ceiling fans
- Cooking range
- Dishwashers
- Electrical wiring
- Garbage disposal units
- Heating systems
- Microwave ovens
- Plumbing systems
- Water heaters

Benefits of Home Warranties to Sellers
Not only do the buyers of a home get to enjoy the advantages of the Home Warranty, but also the seller of the home. The greatest advantage is the fact that it can help the seller attract more potential buyers.

After all, if the seller is willing to purchase a warranty to stand behind the home’s condition, the buyer is more likely to believe that the seller is offering a fair deal. Furthermore, buyers are more interested in purchasing a home where they know their investment is protected. Buyers who agree to purchase a home warranty at the time of closing do not need to come up with the out-of-pocket money to make the purchase. Rather, the funds can simply be taken out before the final check is delivered.

With the rising costs of maintaining and repairing a home, a home warranty is a good investment for any home owner. It could save not just hundreds, but even thousands of dollars worth of repairs or replacements. Home warranties are also particularly useful for tenant occupied properties.

Northwest Arkansas Real Estate AgentAngela Johnson is a Realtor in Northwest Arkansas with over 15 years of real estate experience.  She brings a wealth of knowledge and expertise about buying and selling real estate in Bentonville, Fayetteville, Springdale, and all of Northwest Arkansas.  Buying and selling real estate is not the same everywhere, so you need someone you can trust for up-to-date information.  Angela Johnson is eager to assist you with finding your next home, selling a home, and consulting with you on home selling tactics.  Visit for access to homes for sale in Northwest Arkansas.


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Trisha Bush-LeFore
Preferred Properties Land & Homes - Walla Walla, WA
Providing Realtor Services in the Walla Walla Area


Great information on home Warranties. I always reccommend a home warranty to my clients. It takes alot of the stress out of the home purchase/sale process. Makes everyone happy.

Aug 12, 2013 07:04 AM #1
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