The last thing a homebuyer wants to worry about after closing is what could possibly break or malfunction in their new home. Since that can cover a multitude of items and systems, for peace of mind, it’s a good idea to get a home protection plan. If you are a first-time buyer with no experience maintaining a home it could be a good investment. More importantly in today’s market with the majority of homes being sold are foreclosures and the contract states “as is”, the buyer needs to protect their investment.
A home warranty is an insurance policy that covers a variety of mechanical, electrical, and plumbing items, as well as some appliances, inside the home. Optional coverage is available for more expensive systems such as air conditioners, refrigerators, pools and spas.
The Seller may purchase a home warranty plan prior to selling to protect against repairs needed during the listing period, and the Buyer may be able to assume the policy at the close of escrow. Or the Seller may offer to purchase a home warranty policy for the Buyer: Offering a home warranty plan may provide these benefits:
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Increase the marketability of your home by reassuring potential buyers.
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Helps sell your home faster and at a higher price
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Ward off potential disputes after the sale for repair and/or replacement of covered items.
Most home warranty plans can be paid for at the close of escrow. Your Realtor can provide you with brochures of several companies.
