Everything You Need to Know About Home Warranties

By Home Bay

Posted on November 16th, 2016

Taking the initiative to sell your own home means going the extra mile to strike the best deal with an interested buyer. You may want to consider a home warranty as part of the deal. This will typically cost you a few hundred dollars out-of-pocket, but the added cost can really pay off in the long run.


Benefits of Offering a Home Warranty:

Think about the last time you made a major purchase. Whether it was a car, an appliance or even a new flat-screen TV, there’s a good chance it came with some sort of warranty. Knowing you have a warranty included with a major purchase provides added peace of mind and makes you more likely to go through with a purchase.

This same idea applies to those looking to buy a house — especially first-time buyers, who may be a little nervous or uneasy about the potential maintenance costs involved in being a homeowner. Knowing a home warranty is included may give buyers the confidence they need to make an offer.

Inclusions and Exclusions of Home Warranties:

So, what’s typically included in a home warranty? It really depends on the amount of money you’re looking to spend and the coverage you want to offer. Most home warranty companies have a variety of packages or tiers to choose from that offer varying levels of coverage. A basic, bare-bones home warranty should cover heating and cooling systems, plumbing and electrical systems and major appliances. However, if your home has special add-ons, such as a pool or hot tub, you may want to consider purchasing coverage that includes those as well.

It’s also important to understand what’s not included in a home warranty by taking the time to carefully read the terms of the agreement. For example, while a home warranty may cover the cost of repairing a burst plumbing pipe, it may not cover the cost of replacing the wooden flooring that was damaged by the water leak. By taking the time to do a little research, you can ensure that you’re offering your buyers good coverage and that you’re getting a good value for your money.

What to Look for in a Home Warranty:

When shopping for a home warranty, take the time to evaluate different companies. Specifically, you should read reviews of a company online to get a better idea of their customer service, claims process and the like. Even though the warranty is going to be transferred to your future buyers, remember that the coverage will likely begin while you still own the home, so the last thing you want is to end up with a warranty that doesn’t live up to its expectations.

Making a small investment in a home warranty can be a great way to generate interest in your home and can increase your potential sale price.

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Posted in Selling a House