Developers and building contractors generally offer a warranty with all new construction. This warranty, known as the ‘home warranty’ provides a guarantee that the home’s plumbing, electrical, heating and air conditioning systems will work for a specified period of time. Additionally, if the house is sold with major appliances installed, the warranty will also include these items. Should any system or appliance malfunction during the warranty period, the repairs or replacements will be covered. Typically, home warranties cover a property from one year up to five years, and may be renewed with a fee.
Home Warranties Coverage
Home Warranties vary from company to company, but in general they cover:
- Kitchen appliances such as your range or oven, dishwasher and built-in microwave
- Garbage disposals
- Plumbing including a whirlpool tub
- Sump pump
- Water heater
- Ceiling fans and exhaust fans
- Heating and electrical system components
Find a Great Deal
Home buyers generally look for a good deal and a home warranty, even when it is offered with a house that has been previously occupied. The majority of homebuyers invest most of their liquid assets to make the purchase, and a warranty that offers a few years of not having to deal with any expensive repairs would definitely influence them to choose a specific property. The cost for the home warranty will be included into the house’s price.
Competing with newer properties in your vicinity can be a bit tough if you are selling a home that is 20-30 years old. Don’t worry – You can still offer a seller’s warranty to attract buyers. With a seller’s warranty, you will make your property attractive to potential buyers by taking the worry of repairs and replacements off of their hands.
Specialized Seller’s Policies
Obtaining a seller’s warranty is simple. You will have to pay about $300 – $400 for one year of coverage and in the event of a malfunction within that time; the new owners will only have to pay about $50 – $75 in the form of a deductible. Some companies offer specialized policies where you don’t have to pay the premium until you have finalized the sale of your house. You need not worry about the age of your home, as the majority of these companies will provide warranties even to old houses.
Home Warranty vs. Homeowners Insurance
Do not confuse home warranties and homeowners insurance. Homeowner’s insurance policies don’t cover appliances or mechanical systems in a house. As a seller, a seller’s warranty offers you protection in the event of a system or appliance malfunction in the property that you had sold. If you have any more questions about selling your home with a seller’s warranty, contact Frankel Realty (561) 427-2154.