Home Warranties
By Cecilia Sherrard, Fri Dec 9th
What is a Home Warranty?
It is a 1 year service contract that helps protect homeownersagainst the cost of unexpected repairs and replacements ofcovered major systems and appliances that break from normalusage. What Does a Home Warranty Cover?
- Water heater - Heating system/Cooling system - Plumbing system- All major appliances - Electrical system What it Doesn't Cover- Roof - Doors & Walls - Items not built-in Optional Warranties- Roof - Well pumps - Swimming pools, spas
A warranty normally excludes pre-existing conditions, such asitems that are not in working condition when coverage is put inplace. Where can I get One?
Your REALTOR can provide you with the company information. Manytimes a seller pays for and provides the coverage to the buyeras part of the transaction.
Ask for a "seller provided" warranty when making an offer on ahouse. Many buyers purchase them for their own protection.
How Much Do They Cost? The cost for a basic one-year homewarranty ranges from $325 to $425. Optional coverage is peradded item, such as pool, spa or well pump. Each contract callsfor a deductible payment or service call fee from the claimantdirectly to the repair contractor. This fee is usually $50 to$100. The warranty company picks up the cost of repair abovethat amount. Home warranties have proven to be well worth thecost of coverage. As a buyer, use it as a negotiation tool in apurchase contract. Why a Home Warranty
Sellers: A Home Warranty provided by the seller will be viewedas a benefit to the buyer. Adding a home warranty to yourlisting adds confidence and might result in someone purchasingyour home over a newer home. Many people are nervous about oldappliances and fixtures. Buyers are much more comfortable with ahouse that includes a one year warranty. The warranty can bepromoted in the advertising as a drawing feature of the home. Itprotects you should something go wrong after the buyer moves in.If a covered system or appliance repair is needed, the Buyercalls the warranty company, not you!
This after-sale liability protection is well worth the cost ofcoverage. Pay at Closing
There is no charge to the Seller until closing. It is typicallypaid through escrow.
For more real estate information and articles visit:http://www.youshouldown.com
About the author:Cecilia Sherrard is a full time dedicated Realtor in NortheastOhio. With years of experience and knowledge, she has maintaineda multi-million dollar producer status. Servicing areas such as:Westlake, Lakewood, North Olmsted, Rocky River, Cleveland, BrookPark, Parma, etc. Visit her website athttp://www.youshouldown.com
