Home warranties can be worthwhile for both buyers and sellers.
Is it necessary to get a home warranty? Whenever you’re considering getting a home warranty, we have to look at both sides—are you the buyer or seller?
Buyers should know that home warranties help with normal wear and tear. Your homeowner’s insurance will cover accidental loss or damage, but it will not cover normal wear and tear. For example, if your air conditioner goes out in the middle of summer, your home warranty will typically have some kind of service fee, and then they’ll either replace or repair that particular item. Your homeowner’s insurance would not cover that.
“Home warranties are there for normal wear and tear.”
For sellers, depending on what items may come up in an inspection report or what kind of credit some buyers may be requesting, it may be beneficial for you to offer them a home warranty. It could cost you thousands of dollars to repair those items, but a home warranty would cost $400 to $500 for a year’s worth of service. In many cases, a buyer will take it because it covers the items they requested and the entire home. Considering a home warranty could be a great way for you to negotiate a better closing for your transaction.
If you have any questions on home warranties or anything else regarding your real estate transaction, please call or email us. We are always happy to help you out.