What is a Home Warranty and Is it a good idea to get one? This is a Frequent Question that I receive from both buyers and sellers?
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A Home Warranty plan helps you avoid unexpected home repairs which are often extremely expensive. For a year from the buyer's closing the warranty provides coverage against mechanical failures for many major systems and appliances, coverage that is not provided by most homeowners insurance.
Here are some of the benefits of a Home Warranty for both buyers and sellers:
Home Warranties Protect Buyers
- Customer pays only a standard deductible per service call when a repair is needed.
- The customer service center is available 24 hours a day, 365 days a year and provides access to a nationwide network of qualified contractors.
- If you decide to remodel or upgrade, you can take advantage of savings on brand name appliances.
- You are usually covered for locksmith services if you get locked out of your home.
- Renew your warranty - You can enjoy the protection for as long as you own your home.
Home Warranties Protect Sellers
- It provides you with valuable protection before and during the sale.
- 8 out of 10 buyers prefer to buy a warranted home. (Source: Gallup Poll)
- Sell your home faster - Homes with home warranties can sell faster than unwarranted homes. (Source: National Home Warranty Association)
- Sell your home for more - On average, homes with a home warranty increase sales prices by up to 3% by making them safer investments for buyers. (Source: Business Week)
- Save money - Seller's coverage can protect you against costly repairs while your home is listed for sale.
- Peace of mind - Buyers who receive a home warranty are less likely to call the home seller if a covered item in their home breaks down after closing.
