What is a Home Warranty?
A home warranty is a service contract that helps protect against unexpected repairs or replacements . There are different home warranty programs. Make sure you check which systems and items are covered. Typically a home warranty costs around $450. When you purchase a home warranty for yourself, you are purchasing a warranty for the listing period (up to a year) and also 1 year coverage for the buyer. The fee is owed only when the property is sold. If your property does not sell, nothing is owed.
Should I Buy a Home Warranty?
A home warranty is not required, but I would recommend purchasing one. It can help cut down on unexpected costs. Also, buyers are increasingly requesting sellers to purchase them a home warranty. You might as well protect yourself during the listing contract at no additional cost. Purchasing a home warranty can also help with potential issues the buyer may have and may help in negotiations. For example if the inspector says the hot water system is towards the end of its life , a warranty may help a buyer feel more confident about purchasing your home knowing that if it goes out, they will be protected.
