Selling a home can be a long and challenging process. There are countless costs and considerations to account for. You may have gotten everything in order, found a buyer, and you are ready to close the deal. Then something breaks. The last thing you want is to end up paying for expensive repairs and replacements out of pocket when you’re about to sell your home. A good home warranty can help.
How Is a Home Warranty Different From Home Insurance?
A home warranty functions differently from standard home insurance. You likely already have home insurance, but this does not mean you are totally covered. Home insurance protects your property in the event of an accident, fire, or natural disaster. A home warranty works similarly to an extended warranty on a car. If a primary system or appliance fails, a home warranty provider covers the repair or replacement costs.
How Does a Home Warranty Work?
Imagine you are finally about to sell. You have been working for months with your realtor. You have shown and made changes to your property. You found a buyer and are ready to close. Suddenly the home’s septic tank begins to leak. You have promised to sell the property “as is,” and if you cannot afford to fix the damage, you cannot sell your home. This is where a seller’s home warranty comes in.
Provided you have purchased this kind of coverage, you need only file a claim with your warranty company. They reach out to a service provider that in turn contacts you. The provider fixes or replaces the damaged septic tank, and you are clear to close your deal. Instead of spending thousands of dollars in repair costs, you need only pay the provider a small $75 service fee, and you are good to go. This is the value of a seller’s home warranty.
What Does a Home Warranty Cover?
A home warranty covers significant systems and appliances in your home. However, each contract has a different amount of coverage. Most plans cover things like heating and cooling, plumbing, and electrical systems. They also cover appliances, including water heaters, stoves, garbage disposals, and built-in microwaves.
While this does not account for everything, additional coverage for smaller devices can also be purchased to cover washers, dryers, dishwashers, refrigerators, and garage doors. Premium coverage options ensure hot tubs, pools, and septic systems can be repaired with little cost to the homeowner. Coverage also will vary from state to state.
Will a Home Warranty Help Sell Your Home?
Not only does it provide peace of mind, but it also adds value to your home. Potential homebuyers will appreciate a home warranty on the house they are looking to purchase. They do not want to pay for costly repairs either. It can also incentivize them to close a deal quickly. They want to acquire the house before the warranty expires, so they too can have repairs done before they are too costly to make.
Do You Really Need a Home Warranty?
Most home warranties can be purchased from a realtor from $300 to $550. This may seem expensive at first, but remember, a faulty plumbing system could cost you up to $15,000. Still, some who purchase this protection never need to use it. You may think it will not happen to you, but accidents happen, and systems break down. These are simple facts of life. Many homebuyers also expect home warranties. Two-thirds of all home warranties are purchased in conjunction with the sale of a home.
How Do You Choose a Home Warranty?
You have decided you are better off with the added protection of a home warranty, but where do you start? Many home warranty companies are promising the most comprehensive coverage at the best price. Identify how much protection you need. It does not make sense to purchase premium coverage if your home and appliances are brand new. Do research too. Different companies offer different packages. Some may even provide discounts, but you will not know until you ask.
Call around and compare quotes. One example is Landmark Home Warranty, which offers complete and comprehensive coverage for subterranean termites, plumbing, and electrical systems. For niche coverage for things like whirlpool bathtubs, you can turn to Choice Home Warranty. In addition, it also reserves failed repairs at no cost and even provides coverage to outdated systems and appliances. There is no one size fits all contract, so be diligent. You want to find the best protection for you and your home.
A home warranty may seem unnecessary but can potentially save you thousands of dollars. It protects you from costly repairs, adds value to your home, and provides peace of mind. The next time you are selling a home, look at a home warranty. Your wallet and your future buyer will thank you.