Why should you purchase a home warranty?

When you hire a professional real estate agent to sell your home you will most likely be presented with the opportunity to purchase a home warranty.

Many home sellers question the value of home warranties, especially when the home they are selling is relatively new or when most of the major components have been recently upgraded. 

There are two good reasons to offer a home warranty:

  • Reason #1Even though everything was in working order when you sell your home, there are no guarantees as to what can happen four, six or even ten months down the road.   After you close the sale of your home, the last thing you need is to get an unexpected call from the buyer telling you about a problem with the house. When you provide the buyer with a home warranty you are also giving the buyer someone to call (other than you) if a problem should occur.

  • Reason #2:  Lastly you should consider providing a home warranty to the buyer because a home warranty is one of the best marketing tools you can use when selling your home. Keep in mind that a large percentage of homes are bought by first time buyers. First time buyers will generally put all of their available cash into the down payment and closing costs required to purchase their home. In many cases a system failure or problem after moving in could create a major financial burden for the buyer. By offering a home warranty you increase the marketability of your home by giving the buyer "Peace of Mind".

    • Keep in mind that you don't pay for the home warranty coverage until closing.

Some of the most commonly covered Home Warranty items are...

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  • Central Heating system
  • Heat Pump system
  • Central air conditioning Units
  • Hot Water Heater & Hot Water Heat systems
  • Plumbing systems
  • Electrical system
  • Attic/Exhaust Fans and systems
  • Built-In Dishwashers
  • Oven/Range and Microwave
  • Trash Compactor
  • Garbage Disposal
  • Refrigeration system
  • Lighting Fixtures
  • Central Vacuum system
  • Well Water Pump
  • Burglar Alarm and Door Bell System
  • Roof Repair
  • Garage Door Opener
  • Electronic Air Cleaner
  • Furnace Humidifier
  • Septic Tank Mechanical System
  • Sump Pump

Most major Home Warranty Companies will offer additional coverage for the following items...

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  • Swimming Pool
  • Spa/Jacuzzi
  • Washer and Dryer
  • Water Softener

Note: Covered items and limitations may differ depending on the home warranty company that issues your policy.

 

 

 

Copyright 2006 Mary M. Trueheart (GRI)
All rights reserved.
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Last revised: 29 February, 2008

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