When a buyer is presenting an offer to purchase real estate, they are faced with the decision of whether or not to purchase a home warranty. A warranty will guarantee that certain aspects of the home will properly function for 1 year. Unfortunately home warranty, you can’t go back in time after an unexpected problem occurs. By reading this article, hopefully you don’t need to ask yourself, “Should I purchase a home warranty?”
As the buyer a home warranty offers peace of mind. Items typically covered by this purchase are ceiling fans, cooking range, dishwashers, electrical wiring, garage disposal, plumbing systems, water heaters, microwave ovens, and heating systems. They typically don’t cover pre-existing problems. A buyer should do a proper due diligence to verify full functionality before closing on a purchase of real estate. These warranties don’t cover items covered from homeowners insurance such as a fire.. Home warranties don’t cover all areas of a home. However, you can make an extra monetary investment to cover additional items that you deem necessary.
As a seller, offering a warranty encourages more buyer activity. From a buyers perspective, it’s builds belief knowing that a sellers stands behind their appliances and the integrity of their home. Purchasing a home warranty is inexpensive and will lead to buyer confidence.
One of the most challenging steps in determining coverage is determining your provider. It’s important to research your options and get customer feedback to ensure legitimacy and quality customer service. One of the main reasons there seems to be negativity towards home warranties is because a homeowner wasn’t aware that certain conditions weren’t covered. Nobody is perfect and the same applies for Home Warranty companies. There should be enough evidence out there to find reputed companies with good ratings.
Many individuals think warranties in general are a scam and would never pay for such a frivolous expense. I truly believe if a home buyer is living paycheck to paycheck, an unexpected expense could cause financial distress. This warranty could be a life saver and add peace of mind to everyday living. If a buyer is financial sound and is prepared for the unexpected, a home warranty may not be worth the expense. Think about it, how do these companies make their money? Obviously not by paying out money for repairs on a regular basis. More often than not, these companies make money and never hear from a buyer within the first year or ownership.