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| What is a Home Warranty? |
| Whether you are buying or selling a home, you may want to consider
purchasing a home warranty. Repair costs on problems that may arise from plumbing,
heating, air conditioning and major appliances that are not covered by your
homeowner's insurance will be covered in a home warranty. |
| Although sellers are required to disclose known problems, we
all have experienced an appliance or air conditioner that worked just fine
yesterday but won't do a thing today. A home warranty can protect you from
this kind of frustrating situation. Typically warranties last for one year
and cover the replacement or repair of appliances or systems that break down
under normal wear and tear. |
A seller offering a home warranty can increase its marketability
giving peace of mind to a potential buyer. Your home will sell faster and
you may be able to get a slightly better price for your home than unwarranted
homes.
Warranties work by offering the seller limited coverage while the house is
listed. At closing, the real estate agent notifies the home warranty company
and coverage begins for the new homeowner at the close of escrow. |
| There is a fee that usually ranges from $35 to $50 for the homeowner
for the service call. The contractor that has been supplied by the warranty
company to make the repairs will bill the company for any remaining charges.
After the first year, a home warranty costs approximately $350 to $400 plus
the service call fee. You should have a feel for the home by now and whether
you choose to purchase additional warranty coverage is up to you. |
| Do your research on any company that offers home warranties.
Be sure to check out exactly what coverage they offer and what limits or exclusions
are there to the plan. A good idea is to check with your local Better Business
Bureau or consumer protection agency for additional information on the company. |
| Your real estate agent should be able to recommend companies
that have a proven record.
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