HOME WARRANTY OFFERS PEACE OF MIND TO BUYERS AND SELLERS
REAL ESTATE PRACTICE, SHASTA COUNTY, TIPS FOR BUYERS, TIPS FOR SELLERS, TIPS FOR SENIORS
September 7th, 2008
Buyers are hesitant, at times, to purchase an older home fearing unexpected expenses from a breakdown of a home system or appliance. Such an incident can strain a budget that was stretched to make the home purchase in the first place. A home warranty can ally some of these fears by providing coverage for many components that could fail during the first year of ownership.
A home warranty is a service contract that allows the buyer and seller to have specific items covered for one year from close of escrow. When a covered item breaks down, the homeowner calls the home warranty company(available 24/7) and they will have a contractor call the owner to schedule an appointment for a service call. The homeowner pays a trade call service fee to the contractor typically ranging from $45-$65. The homeowner is required to use the contractor specified by the warranty company because they have negotiated discounted rates with specific tradespeople to handle repairs. Most warranty companies have contracts with a plumber, electrician, appliance repair person, etc.
Here’s a brief summary of what a standard policy usually covers:
- Heating system
- Plumbing (including stoppages)
- Water heaters
- Electrical
- Built-in kitchen appliances and freestanding range/ovens
Optional coverages include:
- Air conditioners
- Pool and/or spa equipment
- Well pump
- Septic pumping
- Washer/dryer/refrigerator
- Water softener
- Ceiling fans
- Garage door openers
- Telephone wiring
- Doorbells
- Central vacuum systems
Some home warranty providers try to distinguish themselves by offering additional coverage for code violations, undetectable pre-existing conditions, improper installations, permits and/or mismatched systems.
Home warranties should not be purchased with the intention of using them to “fix up” a home with deferred maintenance or as a substitute for hiring qualified professionals to thoroughly inspect the property being purchased. Real estate agents offer the plans but receive no compensation from the warranty company. Seasoned agents fully understand the value of a home warranty by protecting the home buyer and seller from untimely failures of a home system or appliance.
The list of excluded items is lengthy:
- Solar systems
- Fireplaces
- Improperly sized HVAC systems
- Collapse or damage to sewer, water, drain or gas pipes
- Faucets, whirlpool jets,water purification systems
- Stoppages due to roots
- Lighting fixtures, inadequate wiring capacity,damage from power surges
- Range clocks, meat probes, knobs
In fact, in many cases, the lists of excluded items is longer than the covered items. These warranties are used by home buyers 80% of the time though the average claim costs the company less than $100. Generally, the warranty company will offer to renew the policy for an additional fee before the policy expires.
If you have any questions about home warranties or any real estate matter…give me a call:
530-224-6767 or 530-941-7492
BRAD GARBUTT
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
[...] – Dyson D26 | Spincycle Home AppliancesBest Of emYOU! WinnersRandom Tips ” jimcofer.comHOME WARRANTY OFFERS PEACE OF MIND TO BUYERS AND SELLERS …Our Best and Worst Wedding Registry Experiences (Hint: Avoid [...]
Hi, just doing some browsing for my Whirlpool website. Lots of information out there. Not what I was looking for, but good site. Have a nice day.
This weblog was fantastic! Lots of awesome data and inspiration. Keep ‘em coming… u all do such an important job at writing… can not let you know how much I, for one appreciate all you do! limousine limousine limousine ROCKS
Just desire to say your article is as amazing. The clearness in your post is just excellent and i could assume you’re an expert on this subject. Well with your permission allow me to grab your feed to keep up to date with forthcoming post. Thanks a million and please keep up the enjoyable work.