When it comes to home buying, many sellers offer a "Home Buyer Home Warranty" included in the negotiated purchase of a home. In the event it's not included, home warranties are also available for purchase from the buying side.
Home buyer home warranties are basically a one-year contract, regardless of who pays, (the buyer or the seller) for a period of time, typically written for one year from the close of escrow. Most of them are usually renewable at the end of the initial period of time at the option of home buyers.
Like any contract/policy, it's important to know what's covered...and what's not, because not all policies are the same. Most policies cover most of the working components of a home, for example:
Normally included:
- Built-in appliances
- Plumbing
- Heating
- Air Conditioning
Optional items include:
- Roof coverage
- Pool/spa
- Refrigerator
- Washer & Dryer
- Fixtures
The items listed above are just a few things to consider when deciding on a home warranty for your sale/purchase. Your REALTOR can also provide you with information from the different companies that are available. The "customer service" side can also make a difference.
It's also critical to know policies DO NOT cover pre-existing conditions! Meaning if an item is referenced in the property inspection report as being in-operable/defective, do not expect coverage from the policy contract. It's similar to applying for health insurance with a "pre-existing" health issue.
So when you're looking for competent and knowledgeable real estate help, contact me: Lynda@PreferredHomeBrokers.com or (714) 595-1494 Text or Direct. As the Broker & Owner of Preferred Home Brokers, we've been successfully representing Southern California home buyers and sellers for 35+ years!
Check out our other 2-Minute Real Estate Videos and Subscribe!
- CA Real Estate Contract ~ Understanding the Contract
- Working With a CRS ~ A Certified Residential Specialist
- Short Sales ~ Do's & Don'ts of a Short Sale
- Probate & Estate Home Selling ~ When That Time Comes
- Offer Accepted? ~ What's Next?
- Home Selling 101 ~ 5 Things You Need to Know
- Home Buyer Disclosures & the Statewide Advisory
- Home Buying Know How in a Homeowner's Association
--CA Broker's Lic. Since 1976 ~ 00402040
Not a big fan of home warranties. When looking at what they did or did not cover, on a $35,000 house where money is tight enough, just not going to fly, be needed. The harvest gold stove is probably going to malfunction but a new glass top unit is coming in right after it heads out the door in lots of cases.
Lynda--Lots of people mistakenly think that these home warranties will protect them from every little thing that comes along with replacement coverage. That is so not the case and your video explains this. I do think these are wonderful tools for sellers who want to give buyer peace-of-mind when buying an existing home. Good explanation!
Hi Andrew ~ Some love-em, others think they're a waste of money. Personally I've experienced both myself on purchases. Bottom line, for most I think it removes some of the fear of buyng a "used home" and having large repairs.
Teri ~ You are right about what buyers think about every little thing is covered and I'd also agree about the peace-of-mind for most buyers. Thanks for the visit.
Lynda, love the use of your video to explain to home buyers the value of a home inspection!
Hi Joan ~ Thanks for the nice comment, I've been trying to create "virtual segments" of real estate transaction. This way I just include a video in my communication to my clients, that way they know what to expect. More than anything it seems to generate a lot of questions, which in my book is a good thing.
Lynda, good job with yet another video explaining a home warranty. It was great to talk with you yesterday - sorry my cell kept dropping - my home office seems to be the only spot where it happens. Handy. :)
I look forward to your next video and also let me know what software you decide to use. Curious minds want to know.
Hey Debb ~ Thanks for your comment, and I will let you know if/when I decide on another one!
As long as it is not on the pre-existing you are right Lynda, good to go on the service warranty. EXCELLENT video.
Gary ~ Thanks!