For a few hundred dollars a year, a home warranty offers protection and peace of mind. As a seller, you can increase your chances of selling quickly and at close to asking price by purchasing a home warranty. And your buyers will feel more comfortable knowing they’re protected if an essential part breaks down, particularly if yours is an older home.
Sometimes called a home protection plan, a home warranty is an annual contract that provides for repair or replacement of major items, such as the heating, air-conditioning, plumbing, and electrical systems. Some warranties also cover major appliances such as refrigerators, washers and dryers, and even swimming pools.
When an item that is covered by the home warranty breaks down, the warranty company will dispatch a service provider to assess the problem. If the needed repair or replacement is covered by the warranty, the provider completes the work. Best of all, the homeowner pays only a modest service call fee (typically around $60).
The cost of a home warranty varies depending on the type of property, the kind of plan (basic or extended), and the warranty company, but it can be a bargain compared to the cost of repairing or replacing an essential component out of the homeowner’s own pocket.
Note that a home warranty usually doesn’t cover items that have not been properly maintained, so the homeowner may have to prove regular maintenance. And it’s most important to ensure the home warranty company is reputable and will pay for covered repairs without hassles.