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Home owner warranties to cover major appliances seem to be a pretty common thing these days for a seller to provide, especially if the major systmes are not brand new. So how much do these run and what do they cover? How important are they to making a sale? Thanks
In my area(Middle TN) the base price is around $450 for basic coverage. There is optional coverage that can be added for a fee. The best way for you to find out what is covered is to go to one of their websites as it is fairly detailed. As an example, go to First American Home Buyers Protection|Home Warranty|Purchase Home Warranty|Home Protection Plans|Home Warranty Option|Selecting a Home Warranty|First American Home Warranty|A leader in the home warranty industry which is the website for First American Home Buyers Protection Corporation.(disclaimer: I am not affiliated with this company) I think, more than anything, a warranty for buyers offers some sense of comfort, especially if they are moving into a home that is not new. You will get differing opinions as to how good or effective these home warranty's are. The key to maximizing home warranty benefits is to absolutely follow their procedures/guidelines in accessing the services and to know what is covered upfront. When I have a buyer client making an offer on a home that is not new I always recommend asking for a one year home warranty if it is not initially offerred.
Hope this helps.
First American and AHS are two of the largest companies. It's a nice thing, but I don't know any buyer that has bought a house because it was advertised as having a home warranty.
First American and AHS are two of the largest companies. It's a nice thing, but I don't know any buyer that has bought a house because it was advertised as having a home warranty.
Ok, I didn't buy my house just because of the warranty, but it sure did help sweeten the pot.
Maybe in a high end market or in newer homes it might not be as enticing, but in my situation it made me feel more comfortable about buying a house with a few potential problems.
It's proven it's worth to me. I bought a low end house that was older, so I knew it was going to have some issues. That $500 policy the seller threw in has been worth that much and more so far. I've already had an appliance repairman, an electrician, a plumber, and the HVAC guy has been out once for the heater and once for the AC.
Home owner warranties to cover major appliances seem to be a pretty common thing these days for a seller to provide, especially if the major systmes are not brand new. So how much do these run and what do they cover? How important are they to making a sale? Thanks
We paid $500. Had to pay $90 for a service call on our furnace New Years weekend We had been listed about a week. Got a firm contract a few weeks later, so I guess it was priceless! Buyer never knew.
I warn you they will fix, fix, fix, before they ever replace.
Home warranty prices are based on square footage and type of property i.e. condo, townhome, single family, mobile home etc. Most of them have a basic premium of $350 then you can add additional coverage such as termite coverage, washer/dryer/ and many have the "green" option too etc. Most of them provide free coverage to the seller while the house is on the market. So if something breaks, you just have to pay the $60-$75 fee.
They do sweeten the pot when you are selling a home but buyers are savvy these days.
In the Texas contracts, you can't just tell the seller to provide one, you have to put a dollar amount for the max allowed for the seller to contribute. That way, if the buyer decides to add on a million extras, the seller isn't pay for the buyer's personal property like fridge, washer, or dryer.
In my area, we typically cap at $500, but if there is a pool, most companies charge about $150 for the added coverage so we do $650 for those houses. Each company has different prices so if the buyer spends more, they will pay the difference at closing, not the seller.
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We had been listed about a week. Got a firm contract a few weeks later, so I guess it was priceless! Buyer never knew.
