The Advantage of Having a Home Warranty When You Sell
Many homeowners seem to think that having a home warranty is a good idea but most people don't take the trouble of getting one set up. When it comes time to sell, however, that changes the situation and it may have additional advantages. We will cover some of the reasons for this.
What Is a Home Warranty Policy?
The home warranty is a type of insurance which covers all the repairs or replacements of any appliances or major systems that are working in the home, such as built-in microwave, water heater, ceiling fans, range, exhaust fan, air ducts, pipe stoppages, and related items. Coverage may also include additional items such as the Jacuzzi and washer and dryer. This is similar to the regular homeowner insurance but while regular insurance provides coverage against damages to the house and the personal belongings in it that are caused by environmental factors such as storms and fire, or events such as theft, the home warranty covers breakdown of appliances and systems that are installed in the home.
Those who have a home warranty are covered against having to pay the cost of repair or replacement if any of the covered systems or appliances within the home break down. There will be normally only a nominal fee that is due when the technician makes a house call to repair something. These fees, which are clearly set in advance, are usually negligible when compared to the expenses of replacement. The price of a home warranty policy is less than a homeowner policy, which is understandable due to the more limited range of coverage. For example, a homeowner policy will have to cover the structural damage if a tree falls on your house; comparatively speaking, your drain or trash compactor is a minor loss.
One good thing about getting a home warranty is that it could be obtained without any regard to the type of house. In some cases, a home inspection might even be waived as not necessary before getting coverage. The contract of the warranty would state clearly which items are covered and which are not.
You will need to decide on a contract term you will sign up. There are policies that last a year, which could be renewable and there are longer warranty policies up to lifetime. Normally, as with many things, having a longer period will have a lower annual fee.
Does a Home Warranty Help When You Sell?
Many buyers feel comfortable and reassured when they know that the seller has provided a home warranty because of the protection it gives. This would indeed make a more tempting deal for the buyer.
As with all other insurance vehicles, the home warranty comes in various flavors and you will find a variety of different quotes from the available providers. In order to get a good deal, check around and investigate several sources. Using a phone directory or the internet, and asking a few questions, makes it a snap to get yourself informed.
To summarize, having a home warranty can be an attractive advantage for a buyer. If you are a seller who provides it, helping to make that buyer happy, you're in a good position for success in making the sale.
This article was provided by your Boulder real estate specialists in Colorado, Automated Homefinder.
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Linda Zimmerman, GRI, e-PRO, SRES |
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