Most buyers don’t go blindly into the purchase of a home. We typically recommend a thorough, professional home inspection. This can alert buyers to any issues with the structure of a home, major mechanical systems, and many other problems that buyers may not notice while touring a home. Unfortunately, even the most in depth home inspection can’t predict everything that can go wrong with a house. After sinking a huge chunk of their savings into the downpayment for a home, many buyers would balk at the cost of replacing a suddenly broken HVAC system, or repairing a broken sewer line. A home warranty can help in these situations. If you’re not familiar with home warranties, read on for more info.
What is a Home Warranty?
A Home Warranty protects you from the high cost of unexpected failures to the major systems and appliances in your home by repairing or replacing covered items that break down due to normal wear and tear. A home warranty fills in valuable coverage where your homeowners insurance doesn’t apply. Although home insurance will cover catastrophes, like fires and falling trees, they usually won’t pay for a new appliance when the old one wears out. This is what a home warranty is for.
How Much Does it Cost?
Although it varies from place to place, here in Central Ohio, you can get a good home warranty for between $450-$650. Ask your realtor for more details about different home warranty options. Your warranty will last for 12 months.
Who Pays for It?
Either the buyer or seller can pay for a warranty. For sellers, throwing in a home warranty can sweeten the deal for potential buyers, especially if you have older mechanicals. Of course, buyers can purchase a warranty on their own to protect themselves. Again, if you’re interested in a policy, ask your realtor–they’ll be able to give you expert advice.