Lancaster County PA Realty Check: Home Warranties Can Reduce Your Risk!

Buying or selling a home is one of the biggest financial transactions most people will ever make, and there can be a fear of the unknown on the part of either party.  For a seller, the thought is: "What if my buyer finds some epensive problem that I have to fix?"  Buyers, on the other hand, are thinking, "How do I know there isn't something with the major systems that I can't see?"

Home warranties to the rescue!  For a seller, a home warranty can be a very savvy marketing tool, since most home warrany companies offer sign riders that can "ride" on the sale sign, advising about the warranty; plus the warranty can be included in ads.  It's one more legitimate marketing tool.

For buyers, the warranty can reduce buyer reluctance, based on the knowlege that someone will repair their mechanical systems if something happens.  It doesn't eliminate the need for a home inspection, but it does add a level of comfort to the purchase.

A home warranty typically covers the seller for up to six months during the selling period.  Then the same warranty covers the buyer for a whole year after the sale.  Typically there is a $50 or $55 deductible for each repair call; then the warranty covers the rest of the repair.  The warranty company has their own locally contracted service companies.  If a service person has to come out more than once for the same repair, the deductible is only applied once.

Typically the cost for a warranty is about $375 to $450, depending on the type of home being covered.  Systems usually covered are the heating unit, central air, the water heater, plumbing, and electrical systems.  The warranty may also cover roof leaks, sump pump, water softener, gas lines and other options.  For a relatively small additional fee, major appliances can also be covered.  Read your Home Warrantor's brochures for details on the exact coverage of each provider.

In conclusion, home warranties can reduce risk and stress for both buyers and sellers, and can often even make the transaction easier for their agents!  It's a good thing for all parties to know that such options exist.  Incidentally, buyers can purchase these warranties on their own!  There's no need to rely on buying only homes that have been warranted by the sellers.

For more no-obligation information on how an Accredited Buyers Agent can protect your interests and save you money, contact Brian Schulman at (717) 951-5552 or brian@findlancasterhomes.com .

©BrianSchulman2008