Buying a Home: Home Warranty
A home warranty pays repair or replacement costs for the mechanical systems and built-in appliances that break down in a home. Warranties can be purchased by either the buyer or seller. When the seller is paying for the warranty, it is usually paid for and goes into effect at closing. The coverage period is normally one year. There are a lot of companies offering home warranties and the coverage of individual policies can vary widely. Usually, central heating and air conditioning systems, electrical, plumbing and major appliances are covered. It’s important that you read the policy closely and understand what is and is not covered. The cost for a one year home warranty typically runs between $300 and $600, depending on the size of the home and the specific types of coverage. In addition to the policy premium, there is normally a deductible of $50 – $75 to pay when making a repair claim.
Sellers: There are some very good reasons to pay for a home warranty when selling a home:
-Providing a warranty can help set your home apart from the competition.
-Buyers will appreciate having a warranty and will feel more comfortable about buying your home without worrying about hidden problems.
-Providing a warranty can even result in a higher price, offsetting the cost.
-Certainly it can make it easier for a buyer to make an offer.
These assets make the home warranty an excellent marketing tool. In addition to marketing advantages, you could also avoid getting sued down the road. When a major appliance, heating or air conditioning system goes bad shortly after a home is sold, its not uncommon for the buyer to blame the seller. Unfortunately, this can and does lead to lawsuits. Providing a home warranty with the sale of your home can go a long way towards preventing these types of lawsuits. In some areas where lawsuits are particularly common, almost all homes are sold with a home warranty included.
Buyers: If you are buying a home and it doesnt come with a warranty, you may want to consider paying for one yourself. The first year after buying a home is a time when most people don’t have a lot of cash on hand to cover problems that might arise. Having a one year home warranty in place can provide peace of mind during this time, and if something does break down, could really save your budget.
Home Warranty Questions: Contact Katy Family Homes
Home Warranty Companies: A home warranty can definitely be a valuable asset as a seller places his/her home on the market or as a buyer considers buying a home. However, there are many different companies to choose from. Here are a few links of some companies that are reputable: Allied Home Warranty, American Home Shield, Fidelity National Home Warranty, First American Home Warranty, Land America Company, Old Republic Home Warranty. These links will allow you to make an informed decision about which company is the best for you. Each is similar and each is different as to what they cover and how much they charge. Research to make sure you get the one that is right for you.
For more information about real estate issues in Katy or West Houston contact Steve Reddell. He is a licensed REMAX real estate agent in Katy, Texas you can trust. You can contact him directly at 281-994-5173. You can also visit him on the web at Katy Family Homes.
Sowing a Home; Reaping a Family Gal 6:6-7
Filed under: Buyers, Home Warranties, Katy Family Homes, Sellers
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