Does a home warranty benefit you?
Home warranties have been around for quite awhile and have some benefits for both buyers and sellers.
A home warranty will cost between $350-$700 depending on the plan that is purchased. A buyer or seller can purchase a home warranty during negotiations or even after the purchase of a new home. Home warranties can vary, but are typically for one year. Two year plans can also be purchased.
A home warranty can benefit a seller because if something unforeseen arises after the sale such as a refrigerator quits working, the buyer can pay a flat fee and it will be repaired or replaced through the warranty company. This helps the buyer because they don’t have the stress of a large repair bill and they know what to expect. The home warranty also alleviates the buyer from coming back to the seller asking them to replace the refrigerator. Home warranties are a good way to insure against homes with older appliances, hot water heaters etc… They can also cover well pumps and septic systems for an additional fee.
If you are purchasing a home in the near future, you may want to ask your agent about warranties available in your area.