Do You Need a Home Warranty?

by Andy Ott on March 2, 2012

Does your home insurance policies include things like plumbing or electricity failures? It probably doesn’t. What will you do if something goes wrong in the home after you’ve successfully closed the deal? Even worse, what if something goes wrong after the buyer has now moved in? You could end up paying thousands to have the problem fixed.

Don’t feel that just because ownership of the property has transferred within you to buyer that the buyer won’t come to you if there is a major home failure. Imagine if the brand new vehicle malfunctioned within era of its purchase. Would you make payment for for repairs without word on the dealer? Of course, you wouldn’t. Neither will your buyer if there is a problem with the home after closing.

Being a for sale by owner home seller, you can benefit from the purchase of a seller’s home warranty. Not only will it cover the cost of repair if a major home item fails, it can also make your home look more inviting to buyers. Prospective buyers will be pleased with the assurance which comes from a home warranty.

The very last thing you want is to require the pressure of coping with surprising failure in your home after you have successfully closed the sale. Deciding whether you or the buyer is responsible for spending money on the damages could result in a heated debate. Even within the unfortunate event of the home failure, you can avoid this type of situation by purchasing a seller’s home warranty.

Essentially, your home warranty picks up where insurance policy leaves off if you are paying for failures in things like heating, plumbing, electricity, and air cooling. Be advised that the warranty only covers these materials if they fail automatically. Improper installation or maintenance, code violations, and unordinary deterioration can lead to a denial of coverage. Even without having a home warranty, the purchaser could not reasonably request you to cover damages which were caused by actions adopted their part.

Depending on the provider, seller’s home warranty coverage may vary. Make sure you carefully study and completely understand the policy you are purchasing when you pay for it. In some cases, your home warranty might cover different items pre and post the closing.

Typically, the home warranty takes a year. Buyers are given the option to renew the warranty coverage when it expires. Be sure to advise your buyer the cost to renew the protection might end up being a lot more than the initial cost of the insurance policy.

One of the good things in regards to a seller’s home warranty is it can be included as one of the closing costs. You can obtain the warranty then defer payment until closing, getting the benefit of the warranty without paying for it until later. The benefit for paying for the seller’s home warranty your own self is that you have peace of mind knowing the buyer won’t have to phone you about an unforeseen problem after closing.

Check out why constant home improvement projects are an easier and fast way to save time, money and your sanity when you’re ready to sell your home. Are you looking for a vacation home? Check out Castle Rock Lake.

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