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Contract Series Paragraph 18

By
Real Estate Agent with Keller Williams Realty

George Clements ~ Greenville, SC Real Estate

 

Paragraph 18 of the Contract For Sale deals with home warranties and looks something like this: 

 

18. HOME WARRANTY : It is understood a third-party 1-year home warranty ___ will, ___ will not be provided through_______________________________ Warranty Company at a cost not to exceed $________ at closing. If pplicable, the cost will be paid at closing by ____ Purchaser  ____ Seller. No additional home warranty will be provided if one is currently being offered by the Seller.

 

This paragraph  shows if a home warranty will be provided for the home and if the purchaser or the seller is going to pay for it.  Normally, a home warranty costs between $400 and $600 just depending on what is covered in the warranty.  There is normally a deductible that comes with covered items but it can be worth it if it saves hundreds of dollars on some repairs. 

A seller will not care if the purchaser gets a home warranty or not as long as they get their same bottom line for selling a house.  In other words, $100,000 and no home warranty is the same as $100,500 and a $500 home warranty.  The sellers net price is the key. Sometimes, sellers will offer a home warranty as a way to entice purchasers but it does not really have much affect in getting a house sold.  The key factors are still pricing and staging.

 

 

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