According to a 2004 report cited by American Home Shield, there is a 68% chance that a major system or appliance will break down in the first year you live in your home. With the protection of a home warranty, a breakdown or repair won’t break your budget.
New home builders generally supply a one year limited warranty and a longer structural home warranty, but it is important to verify what is included.
What is a home warranty? It is a contract that is generally renewable that covers the repair or replacement of many of the major home systems and appliances in the home. Exactly what is covered varies by the home warranty company and the options they provide.
What are the benefits to a seller for purchasing a home warranty?
First of all, if a system fails during the listing period when a home warranty is purchased with seller coverage, the repair will be covered by the home warranty.
A home warranty is an excellent marketing tool. Potential home buyers appreciate a home that is covered knowing that they will be protected from unexpected home repairs that are covered.
Studies show that 76% of Realtors® recommend a home warranty.
According to a study done by Marshall & Swift LP, in 2005, homes with warranties sell up to 15% faster and they sell for a price that is 2.2 % higher.
It is important to understand that generally there is a trade service fee each time a service call is made but it is usually very reasonable and the fee can often be reduced by paying a slightly higher up front fee.
Home warranties typically have limitations and conditions to the coverage. Refer specific questions to the home warranty company.
Contact the Marti Hampton team for a list of Home Warranty Companies that we recommend.