Should I Buy a Home Warranty?

If you’re thinking about selling your house, one factor to consider is whether or not to offer a home warranty. Even though this is an added cost to you as the seller it may be to your advantage. It might be the one factor that makes your home more appealing to nervous buyers as they try to decide which home to purchase.

Home warranties average about $400 for a year depending on the company and terms of the warranty. Many companies allow a seller to wait until their home is sold to pay the warranty premium. If anything should break down for the new home owners such as a problem with the furnace or an appliance breaks down, the new owners would just have to pay a small deductible and the problem would be repaired.

As a buyer when you purchase a home that has a home warranty in place, be sure to read it. Make sure you know what’s covered and what’s not. It’s also important to know who to call when repairs are needed.

One of the home warranty companies that interacts with provides policies where a homeowner can call its customer service representatives 24 hours a day and then call a repairman of the homeowner’s choice. This is not the case with all warranty companies where the homeowner has no choice in who to call for repairs. In many cases, the warranty company will send a repairman of its choosing to your home.

Another important point to remember is that a home warranty is not the same thing as an insurance policy. Home warranties usually cover very specific things in your home such as appliances or furnace for example, for a certain period of time depending on the warranty. Your home owner’s insurance generally covers damages to your home due to natural disasters, fire, crime, accidents, etc.

When selling your home, especially if it is older, a home warranty might give you a bit of an edge on the competition. It might just be the one factor that tips the scales in your favor. Call and one of our agents can help you decide whether this would be a good option for you.