If you are a homeowner, chances are you have heard of a home warranty. But what exactly is one? A home warranty is insurance policies that covers the cost to repair or replace your air conditioning system, plumbing, dishwasher, and other appliances in your home should they break down due to normal wear and tear.
In this blog post, we will answer some frequently asked questions about these policies so that you can make an informed decision about whether or not to get one when selling your home.
Do I Need A Home Warranty When Selling My Home?
Most real estate agents will recommend that their sellers purchase a home warranty. Even if your appliances are brand new, it is still recommended to get one because they can save you money on repairs even if you never have to use them. If the appliances are older or not in perfect condition, you will need to get one. Chances are, your buyers will request it if you don't have one, even if the appliances are in great shape.
How Much Does A Warranty Cost?
A home warranty will typically cost about 2-3% of your home's selling price. It is well worth it when you consider that most repairs cost well over $1,000.
Can I Use My Warranty In The Middle Of Selling My Home?
What if I just want to list it without one? When you are ready to sell your home, you must provide your buyer with a complete home disclosure checklist. This form will state all of the systems in your house that are working and those that need to be repaired or replaced. You will also have a section on the form where you must disclose whether or not your home is still under warranty. If you don't have one, this could hurt your chances of selling your house since most buyers require them to complete the sale.
Can I Keep My Warranty Even After I Sell My Home?
You will have to give up your warranty most of the time once the home has been sold. This is because most warranties are tied directly to the address where they were purchased. If you decide that you would like one on your new property, you can usually get a new warranty issued by another company.
What If I Need To Make A Claim?
Most home warranty companies offer a service that is easy for customers to use. You should have an easy time contacting your insurance company through email or phone, and you can also submit a claim online. You will typically need a repair person on site before they approve the repair, so you will have to schedule this at a convenient time.
Do I Need A Warranty for My Home?
Most real estate agents will recommend that their sellers purchase a home warranty. Even if your appliances are brand new, it is still recommended to get one because they can save you money on repairs even if you never have to use them. Even though the appliances might be older or not in perfect condition, you will be required to get one. Chances are, your buyers will ask for one.
Conclusion
Home warranties are affordable, and they can save you a lot of money if your appliances break down. When buying or selling a home, it's essential to decide how much insurance your property needs. It is best to consult with an experienced real estate agent before making any significant decisions. A professional agent will be able to help you make the best choice for your situation.
You can pay for this all at once or use a finance option to split the payments into manageable installments. Home warranties can help with real estate transactions and more by making this process easier. You will have to give up your warranty most of the time once the house has been sold.
