What is a Home Warranty?
Why should I purchase one for my home?
A home warranty is an insurance policy that will provide repair or replacement of major home systems during the listing period and for a year after the sale of a property. The price will depend upon the extent of the systems being insured, but we always feel that this is a worthwhile investment for any home seller.
- First, this policy protects you, the Seller, during the period that your home is listed. We have many times seen air conditioning or heating systems fail, pipes and cause a flood, appliances break down while a home is listed. You are protected in these events and pay only a modest service fee.
- Second, the Buyer will undoubtedly request/demand that you provide this coverage as part of their offer if it is not already provided, and no one would risk losing a sale by refusing to provide this coverage.
- Furthermore, if your home does not sell within the listing period and you decide not to continue efforts to sell our home, you do not pay for the policy EVEN IF YOU HAVE MADE A CLAIM ON IT. The policy is paid from the closing proceeds, and if there is no closing there is no payment.
Thus we always encourage our Sellers to provide this coverage when they first list their home.