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

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

Brian Schulman offers expert real estate representation for buyers and sellers of homes in Lancaster County, PA.  To learn more, visit http://www.FindLancasterHomes.com/

 

Brian Schulman offers expert real estate representation for buyers and sellers of homes in Lancaster County, PA.  To learn more, visit http://www.FindLancasterHomes.com/

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Comment balloon 4 commentsBrian Schulman • April 28 2007 12:05PM

Comments

I am with you Brian! I pretty much made home warranties standard in all my deals in the late '90s. I even got one on the last two homes I bought for myself. In both cases, they more than paid for themselves. I have had clients call me and thank me for these warranties after 6 months goes by and the A/C dies.
Posted by Robert Whitelaw, Broker, CEO, Realtor , ePro (Whitelaw & Sons Real Estate Services) about 11 years ago

Our company actually gets a discount on our E/O insurance based on how many of the homes we sold had a home warranties on them.

Posted by Respect Realty LLC, Brokers - Oregon / SW Washington Real Estate (Respect Realty LLC) about 11 years ago
Robert,  I have an investment property I have been thinking I should get a warranty for - the major systems are all 15 years old including the heat pump/CA.  Im glad your experience with warranties has been good.
Posted by Brian Schulman, Lancaster County PA RealEstate Expert 717-951-5552 (Coldwell Banker Residential Brokerage, Lancaster PA) about 11 years ago
Todd - that's a great E&O policy; they must recognize that liability risk is reduced when the buyer is covered for unexpected system malfunctions, especially soon after the purchase was made.
Posted by Brian Schulman, Lancaster County PA RealEstate Expert 717-951-5552 (Coldwell Banker Residential Brokerage, Lancaster PA) about 11 years ago

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