What Is a Home Warranty and Why Do I need one?

By
Real Estate Agent with Coldwell Banker, 170 N Main Street, New City NY 10956
http://actvra.in/NxR

What Is a Home Warranty and Why Do I need one?

Your home is probably your single biggest investment.  For most new home buyers the last thing they need to worry about is an unexpected repair that can seriously strain their budget.  For peace of mind and as added protection against anything major that might go wrong with a homes major systems, it's a good idea to get a home protection plan.

handyman

It safeguards you against the financial strain of a major repair and for first time homebuyers that have little or no experience in maintaining a home this can be a real lifesaver.

What exactly is a home warranty?  It's actually a renewable service contract that covers the repair or replacement of most of a homes major systems.  Most home warranties will cover the plumbing, electrical, and  heating systems of the home and also some of the homes major appliances such as refrigerators, dishwashers, and ovens.

plumbing

The way it works is that the home warranty company contracts with local repair companies and servicemen to provide service.  If something breaks you call the home warranty company and they send an insured and approved contractor to do the work.  In most cases, your only out of pocket expense will be a small service charge to the contractor. All other work and replacement parts are assumed by the the warranty company.   If it becomes necessary to replace any appliance or system, they will replace like with like or in the case of a discontinued item, they will replace with the next closest comparable item.

If, as a seller of a home you offer a home warranty to your buyer, then the coverage offers protection for the home the entire time it's on the market  from the time its listed until one year after title transfer.  This gives buyers extra confidence in the real estate transaction since they know that if anything goes wrong while the house is under contract, the home warrenty company will fix it.  They don't have to rely on a seller who might avoid investing more money into a home he's trying to sell.

The best source for a Home Warranty company would be your Realtor since they deal with these companies daily and know which ones are the most popular ones with their home buyers.

As a realtor I generally encourage both my home sellers and buyers to invest in a home warranty.  They range in price between $350-600 /yr depending on the company, location and coverage.  I'll negotiate it for my buyers and contribut to the cost of it for my sellers. Its a small price to pay for piece of mind.

Posted by

Lora "Leah" Stern - Your Rockland County, NY REALTOR of Choice - (914) 772-4528

Your Rockland County, NY Real Estate SpecialistLeah Stern Signature Photo

Lora "Leah" Stern
Real Estate Salesperson
Coldwell Banker Residential Brokerage
(914) 772-4528 CELL
(845) 634-0400 OFFICE
(862) 345-2463 FAX

If I can assist you in any way with your real estate needs in Suffern, NY Rockland County or the surrounding areas, please feel free to contact me by phone at (914) 772-4528, email me at Leah.Stern@cbmoves.com or visit my website .

Follow Me:        Twitter icon      Linkdin icon      facebook icon     AR raindrop

 

close

Re-Bloggged 18 times:

Re-Blogged By Re-Blogged At
  1. Praful Thakkar 01/13/2011 11:50 PM
  2. Ellie McIntire 01/14/2011 12:57 AM
  3. Vickie Nagy 01/14/2011 02:19 AM
  4. Karen Kruschka 01/14/2011 08:12 AM
  5. Rob Arnold 01/14/2011 10:55 AM
  6. Linda Sabo 01/14/2011 11:52 AM
  7. Gloria Todor and Doug Durren - Delaware County PA Real Estate 01/14/2011 12:09 PM
  8. Karen Fiddler, Broker/Realtor 01/14/2011 12:43 PM
  9. Brandon & Grace Yee 01/14/2011 12:46 PM
  10. Donald Bradbury 01/14/2011 12:46 PM
  11. Ed Silva 01/14/2011 07:22 PM
  12. Debbe Perry 01/14/2011 10:18 PM
  13. Trisha Pennington 01/15/2011 12:53 PM
  14. Gene Riemenschneider 01/15/2011 10:18 PM
  15. Cindy Jones 01/16/2011 02:35 PM
  16. Judi K Barrett 01/16/2011 02:39 PM
  17. Pamela Stangler 01/17/2011 10:02 PM
  18. Kristen Wahl 01/20/2011 07:57 PM
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the foot to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
Home Buying
Location:
New York Rockland County
Groups:
1st Time Buyers
Advice for Buyers
Advice for Sellers
Almost Anything Goes
Posts to Localism
Tags:
home warrenty
suffern ny realtor
buying a home in suffern ny
selling a home in rockland county ny

Comments 69 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the flag to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
572,502
DeeDee Riley
Realtor - El Dorado Hills & the Surrounding Areas
Lyon Real Estate - El Dorado Hills CA

Leah, A home warranty is really worthwile and something I put on every contract.  Here is CA the companies that offer them have a seller's policy but it covers just during the listing period.  The buyer's coverage if purchased takes over on close of escrow.  Great explanation here!!!!

January 16, 2011 07:34 PM
Rainmaker
493,806
Lora "Leah" Stern 914-772-4528
Real Estate Salesperson
Coldwell Banker, 170 N Main Street, New City NY 10956

DeeDee - Same here - The sellers policy covers them for the duration of the listing.  The buyers' for a year from close.

January 16, 2011 08:49 PM
Rainmaker
750,827
Marte Cliff
your real estate writer
Marte Cliff Copywriting

This is something that hadn't come into fashion when I quit selling, but I think it's a wise idea. Even after an inspection, something can break down a month after closing, and buyers who poured it all into a down payment might not have the resources to pay for repairs.

January 17, 2011 12:44 AM
Rainmaker
291,975
Margaret C. Taylor
St Marys/Calvert/Charles MD Real Estate Agent
Century 21 New Millennium MD

Reading the small print is important in every document.  If someone else pays the Buyer might not get everything but he will get some  protection.

January 29, 2011 10:13 PM
Rainmaker
192,165
Sandy McAlpine
Search Lake Norman Homes For Sale - Lake Norman NC
McAlpine Properties

great explanation fo the home warranty. I try to offer one to all my listing and buyer clients

March 02, 2011 08:46 AM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the lamp to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
493,806

Lora "Leah" Stern 914-772-4528

Real Estate Salesperson
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the airplane to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information




How Can I Help You?
Interested in Buying or Selling a home?? Contact me and we can brainstorm our way to a closing together!
Lora "Leah" Stern, Realtor