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A home warranty is not only crucial for buyers but for home sellers as well. If you want to purchase or sell a home, not investing some money to have a home warranty can be regrettable. It is important to be aware of what warranties entail and why you should consider getting one.

Purpose

A home warranty provides you with coverage in case major systems or appliances break down. In many cases, a warranty covers things that a conventional home homeowner’s insurance policy will not. Having a home warranty as well as comprehensive home insurance gives you excellent coverage.

Many homes encounter issues that pertain to appliances and mechanical systems on a regular basis. This may arise once in a year or after every few years but you cannot be sure about the things that will happen. Having the protection that a home warranty provides is a wise step for both buyers and sellers.

  • Buyers
  • When buyers are covered by a home warranty, they have access to experienced and qualified contractors by simply calling their providers. This is a key advantage when you are not familiar with the area.
  • While sellers usually purchase the first year of the home warranty, buyers can renew on an annual basis. As a home gets older, the possibility of problems arising increases. Having a warranty can be beneficial in the long run.
  • There is fulfillment and ease that comes with knowing that you are adequately covered if problems occur. Click here for California warranties.

Sellers

  • Sellers get coverage for the listing period and are not required to pay for a policy until the deal closes.
  • Providing home warranties may successfully entice potential buyers to buy your homes instead of those that do not offer a warranty.
  • If an issue comes up after the title transfer, the buyer can get in touch with the warranty company instead of contacting you.

Getting a Home Warranty

When you are buying or selling a significantly costly home, spending some money on a home warranty is a relatively minimal expense. If you regard a home warranty as an investment rather than an expense, it makes much more economic sense.

Key Considerations

  • One of the aspects of a smooth real estate transaction is buying a home warranty when you purchase a new home. Home warranties can also be referred to as protection plans and are available in a variety of formats. They help to cover several items that could malfunction or break in your home.
  • The cost varies and major appliances are usually covered. It is important to get a detailed list of all the items that are covered. You should also find out about any pocket service fees that may be your responsibility.
  • It is common for home sellers in today’s market to pay for home warranty coverage. This is because it is regarded as a benefit and the buyer will not be relying on the seller if something breaks after closes.
  • In some cases, the real estate agents also offer their clients the gift of a home warranty at closing.
  • Working appliances are necessary for a functional home.

 

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