So, what exactly is a home warranty policy? Well, usually, a home warranty policy is a 12-13 month contract a seller can offer a buyer or a buyer can purchase on their own behalf. If you're a first-time buyer who is purchasing a home that is old and might have certain liabilities, there is a good chance you won't have the funds necessary to make repairs right away. A home warranty gives you peace of mind in situations like this!
An insurance policy will protect the buyer for that 12-13 month period of time against any problems with the furnace, dishwasher, air conditioner, or any other appliances. The benefit to the seller is it gives the buyer peace of mind that they are protected for at least a year after purchasing this property; the benefit to the buyer, on the other hand, is if there is any major problem in the first year with the newly purchased home, they will not have to make a huge financial sacrifice to address it.
The price of the policy depends upon the age of the home. On older homes, buyers are often expecting there to be a home warranty included in the asking price, as there is a high chance that there may be defects with major appliances. Often times, it depends on the financial capabilities of the buyers. For example, cash buyers will likely not expect a home warranty to be included in the home purchase. On the other hand, there is a good chance that people who are putting less money down will expect a home warranty to be included.
If you have any questions about this topic, or if you need our assistance, give us a call or shoot us an email at any time. We would love to hear from you!
