House Warranties – An Increasingly Important Part Of Home Buying Negotiations

Posted by on Aug 24, 2016 in Real estate | Comments Off on House Warranties – An Increasingly Important Part Of Home Buying Negotiations

A home warranty could benefit both the home seller and the house. Home warranties could be bought by either a home seller or a house buyer and are usually paid for at closing when they’re part of a sales contract. Home warranties cover repair and replacement costs when appliances and other systems in your home stop working properly.

If you’re constructing a new house, it’s likely that your builder is required to provide a one year warranty for problems that you might encounter after closing. It’s very necessary that the purchaser does not confuse a house warranty from hazard insurance. Hazard insurance covers items damaged by fire, wind, or other covered events. A warranty changes, restores or repairs things that fail on their own. Packages of house warranties are available through most real estate brokers and differ somewhat in coverage policy. Normally, they’ll warranty the most important systems of the home for a year. Sooner or later every appliance and system in your home is going to fail due to normal tear and wear. It’s virtually impossible to predict when breakdowns will occur, and all too often they happen at the worst possible time. Home warranties could help secure your home from costly repairs to all your appliances and major systems in your household.

Standard house warranties offer warranties that differ a little bit by provider so it is smart to learn each policy cautiously prior to selecting one. Most standard home warranties pay for repair or replacement costs for plumbing systems, appliances, and the heating and cooling units. Some home warranties include the roof of your house in their policy coverage. House warranty coverage is usually different for sellers and buyers. Examples of this kind of warranty coverage include a standard policy may not forfeit a seller’s repair fees if the air conditioner stopped working before closing, however, it’ll cover the purchaser if that happens after the transaction of the house. When it comes to any warranty it is very important to read the fine print so that you will be sure about warranty coverage for particular circumstances. Most real estate agents provide extensive literature from various house warranty providers.

House warranty policies are usually effective for 1 year and the buyer have an option to renew the warranty coverage once expired. The cost for renewal is generally higher than the cost paid for the first policy. A standard home warranty policy typically costs anywhere from $ 350 to $ 500, but costs vary from provider to provider. While you are shopping for your house warranty provider, it is best to know which things are incorporated in the standard coverage, such as which things should be added on as separate policies and how much will it cost in cases you want to add them, as well as what the co-payment would be. The co-payment is the amount the owner will be required to pay when a repair person comes out to fix a failed system. This payment generally covers the entire cost of the repair and is similar to a health insurance co-payment. It is important as well to know if the provider of the warranty policy has been operating long enough to prove you a good past performance for customer reliability and service.

Home warranties give benefit to buyer and sellers as well as making your home more attractive to possible purchasers. These warranties are very useful especially when the appliances in your home are already old. Giving a warranty would ensure a little peace of mind to the buyer as well as to the seller.

As the price of the home warranty is so minimal compared to the price of the house and can be paid for at closing, the seller is not out of any money until the house sells. If you’re buying a previously owned house and a home warranty is part of the deal there are some important facts you should know before you buy. If a warranty is purchased on an existing house you are actually buying a service plan that is supposed to protect you from repair bills on major appliances. This type of warranty does not cover structural defects so it’s important to have the home inspected. Another major problem with this type of warranty is the denial of claims as they may be deemed pre-existing conditions. Having a home inspection will help ward off this type of denial in claims. House warranties are often great idea especially when it comes to considering your homeowner’s insurance normally will not cover repair fess for appliances. It is best to seek the guidance of your realtor for best decisions on getting a home warranty as they could likely suggest a plan that suit your needs.

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