What is a home warranty?
As an added incentive to buying a home, many sellers will purchase a home warranty, also known as a home owners warranty or home protection plan, usually lasting up to one year. A home warranty is a service contract that covers the repair or replacement of home appliances and home system components that may break down.
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How does it work?
There are many different companies from which you can buy a home warranty, but they generally all work the same way. Once purchased (typically $400-$600 for one year), the home owner calls the company when a household appliance or component is not working. The company will send a local professional to assess/fix the problem. The home owner will pay a predetermined fee (usually around $75- $125) for the visit and the company will pay the price of the repair or replacement.
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Is it worth it?
For the seller – most homes sell faster if a home warranty is included. It is a great added selling point that can only help in the sale of your home.
For the buyer – it is important to know what exactly is included and excluded in the warranty. If many of the items excluded are the ones causing concern in your home, it may not be worth it to renew after the first year (paid by the seller) expires. In lieu of a home warranty, you could put aside money each year into a home repair fund. That way you know your money can be used for any repair or replacement – no exclusions.
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For all your real estate needs, contact expert DFW realtor, Stacey Perry with Keller Williams Realty, today!
Phone: 817.313.1833
Email: staceyperry@kw.com
Website: Stacey Perry Team
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