Home Glossary Contact Us  
News Back
Home Warranties: A potential benefit for both buyers and sellers alike.
The market for homes across the USA has never been more challenging for homeowners trying to sell, nor more mind-boggling for buyers shopping among the historically overwhelming inventory of discounted listings. At the same time, mortgage lenders are more stringent than ever due to painful losses due to delinquencies and foreclosures, so it is important to write purchase offers on houses that can hold up to mortgage company and appraiser scrutiny. But beyond the initial sale of a home, legitimate buyer concerns arise regarding the condition of the home – and whether it will continue to provide a problem-free experience after the keys change hands.
One resource to add to your credibility toolbox is a home warranty. While these insurance policies are often overlooked or underrated, they can easily pay for themselves by boosting confidence, ensuring quality, and calming the emotions of nervous and cost-conscious buyers.
The way a home warranty works is that it covers basic components of a home such as appliances and furnaces for a period of time, allowing the homeowner to market property with an added security blanket. Buyers get the assurance that things will work as they are supposed to, which can often make or break a fragile sales transaction. Many also cover your home the entire time you have it listed, so that last minute breakdowns don’t threaten to kill an otherwise flawless deal.
When moving into a new home most consumers are cash poor, thanks to an inordinate amount of expenses such as new furniture, interior decorating, and moving van costs. That fact is only intensified and accelerated by today’s high gas prices and fears of an economic recession, so sellers who offer a home warranty generally get a solid return on their investment by giving buyers a reliable and predictable outlook. That’s because if items that are covered need to be repaired or replaced during the warranty period it won’t add a financial burden.
The policies can be bought by the buyer or the seller, and sometimes are thrown in by real estate agents as an added bonus or housewarming present. Especially for sellers trying to market an older home in today’s highly competitive market, a home warranty can be an attractive yet affordable perk. Warranties are fairly inexpensive, typically ranging in price from $250 to $500, depending upon what is covered. It is also possible to find discounted policies when insurers offer specials, seasonal sales, or enhanced coverage for the “regular” price. Policy premiums are paid up front, and the period of coverage can run from a few months to more than a year, depending upon the specific terms and whether the holder decides to renew the policy or not. Homeowners making a claim may sometimes have to pay a service call fee, but those are usually nominal.
Details of the coverage are critical, and differ from policy to policy, so it is important to read the fine print and understand any and all restrictions. Whether or not the policy is transferable depends on the company, and this can be an important feature if you plan to sell and don’t want to remain responsible for handling potential claims.
Find an Agent
Enter City Name:
Useful Links
Homeowners Insurance
Auto Insurance
Life Insurance
Health Insurance
Free Insurance Brochures
Recent News
In a “Rent to Own” Situation? Get Condo Rental Insurance
The Presidential Memorandum Regarding Hospital Visitation and Decision-Making
Homeowner Insurance Overview - What You Need To Know
Homeowners and Renters Insurance - Don't Take Chances With Mother Nature
Study: Gay marriage bans lead to lack of health insurance
The Gay Ghetto Top 10 for 2008
Reasons For Home Insurance
Homeowner’s Insurance Puzzles: Is This Covered?
Insurance Professionals Dedicated to Serving You!
Auto Insurance for your kids
November, 2010
June, 2010
February, 2010
January, 2010
September, 2009
August, 2009
July, 2009
June, 2009
May, 2009
April, 2009
March, 2009
February, 2009
January, 2009
December, 2008
November, 2008
FAQ | Agents Join | Agents Login |  Link Partner | Privacy Policy | Terms of Use
Copyright © 2019 Gaysurance.com