After having a professional inspection completed, Sellers or Buyers should next consider the advantages of purchasing a home warranty. Statistics on real estate transactions taken over a period of many years demonstrate the true value of a home warranty.
- Eight out of ten Buyers prefer to buy a warranted home;
- Home warranty coverage can protect the Seller or Buyer against costly repairs while the home is listed for sale;
- Home warranties reduce the possibilities that the Seller will be asked for compensation after the closing; and
- For the Buyer, a home warranty provides financial protection for unexpected system breakdowns, such as: HVAC system, kitchen appliances and in some cases, roof leakage.
Home warranties will vary, with allowances or deductions for unexpected roof issues, systems age limitations and exclusions for pre-existing conditions. Some home warranties can be difficult to deal with and will always opt to keep repairing systems rather than replacing, irrelevant of age, leaving you with a hefty deductible payment every time. Some will even prolong replacement of major systems for weeks leaving you without the use of the system such as the air conditioner, because they can. A home warranty is only as good as their commitment to you and the contractors they have working for them. Do your research and choose a warranty that best suits your needs.