If you are or have gone through a real estate transaction you have probably had the opportunity to discuss a home warranty for the house that is being sold or purchased.
So what is a home warranty and why does it matter in a real estate transaction?
A home warranty is a service contract that provides peace of mind for a homeowner for repairs in the major systems of a home such as air conditioning, heating, duct work, water heater, kitchen appliances, electrical, and plumbing. If a failure occurs, a claim can be placed and a licensed contractor within the pool of licensed, insured & qualified contractors will be dispatched to schedule an appointment. Typically the service or diagnostic fee is between $50 and $100 per trade. Please keep in mind the home warranty compliments the home owner’s insurance, but does not replace it.
The benefit’s of a home warranty are important to understand. The primary benefits are as follows:
- Peace of mind for all parties
- Saves money on home repairs & protect’s the budget
- Reduces negotiations during the transaction
- Provides a marketing advantage to attract a buyer for properties for sale
- Increases the likilhood of the property selling
- Reduces liability for all parties involved
- Reduces “after the sale” headache