The Benefits Of
Buying A Home Warranty: Good News For Home Buyers and Sellers
MySpendingPlan.com Editorial Staff
A home warranty
is a type of insurance that is available to both home owners and buyers.
Home warranties cover different types of household items and major
appliances and pay for the repair of the covered items in case they
break down. Some types of home warranties may even pay for replacing
the damaged appliances with new ones.
Here are some of
the appliances that are routinely covered by most home warranties:
built in appliances are covered by home warranties and not free standing
ones. But by paying a little extra, you can add coverage for appliances
- Water pumps
- Sauna or
If any appliance
is damaged or not in working condition when you buy the home owner’s
warranty, those appliances will generally not be covered under the home
Benefits Of A
- Having a
home owners warranty enables you to attract more buyers for your
home. Your home becomes more appealing to prospective buyers as
they do not have to worry about repair costs for the major
- Without a
home warranty, you may have to deal with angry home buyers who knock
on your door because you sold them a house which you knew had
defective appliances. Consider the legal issues here. The low cost
of buying a home warranty is much preferable than having to settle
issues with your home buyer.
- If a home
buyer is deliberating over buying your home because the appliances
and systems are old, having a home warranty will give confidence to
the buyer to buy your property.
- If you
purchase the home warranty while selling your home, you will have to
pay for it only at closing and thus need not shell out your own
closing the deal for a new home, buyers are typically low on cash.
In such a situation, you definitely don’t want to have to spend
large sums of money in repairing major appliances. This is where a
home buyer warranty can be very useful.
- In most
cases the home seller will buy the home warranty, but if they don’t,
you can ask them to purchase a home warranty. Most sellers will
oblige in a bid to sell their homes. You will therefore not have to
pay for the home warranty.
- As a buyer
you can have the satisfaction of knowing that the home seller is not
trying to sell you a home with bad appliances which may break down
and need repairs as soon as you move into your new home.
Buying a Home
You have two
choices when it comes to buying a home warranty:
- You can buy
the home warranty from a home warranty provider
- Your gas or
electric company may offer appliance service plans to customers for
a modest monthly premium. These plans protect you against repair
and replacement costs up to the period of the plan.
warranties can be bought for about $350-$450 per year whereas those with
additional optional coverage can be bought for $600-$700 depending on
how many extra appliances you wish to insure. Considering the rising
costs of appliance repair and replacement, a home warranty is an
absolute must for home sellers and buyers.