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Buying a Home Warranty? A home warranty policy covers repair or replacement costs for appliances and other systems in the home that may break down. The warranty may be purchased by either the buyer or the seller, or may be negotiated as part of the purchase process, with the parties sharing the cost. A home warranty covers a home of any age, and does not require an inspection of the home or it's systems. The provider usually requires that systems be functional, and will not cover repairs to pre-existing failures. Standard warranties vary by provider, so be sure to check what is covered. Usual standard coverage includes plumbing, appliances and heating and cooling systems. Additional coverage can be obtained for hot tubs, septic systems, wells and swimming pools. Some policies even cover roof replacement. Be sure to compare coverages when considering a warranty provider. Costs for home warranties vary, but the usual range is $350 to $500. There can be additional costs for special items. The usual policy period is one year, and is renewable each year. Be sure to ask about renewal prices, as some providers charge more than the original policy for renewals. Your policy will include a cost per visit, typically $45 to $75. The technician will repair the item, or replace it with an item of similar value. There can be additional costs to repair or replace certain items. When considering a provider, check to see that they have a full range of services and that they are available in your geographical area. A home warranty makes a home more attractive to buyers because it gives them some assurance that they will not face unanticipated expenses during the period immediately after the sale, when cash can be scarce. It helps the seller to avoid repair expenses should something breakdown while the home is for sale. In older homes, it helps to eliminate home inspection issues typically raised when an inspector notes a system is "nearing the end of it's useful life". Even though that 20 year old water heater or furnace is working perfectly, it can become an issue during the sale.
Contact Bold Real Estate Group for more information
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