Home Warranty

Purchasing a home is a considerable investment. Whether purchasing or selling a home, it is nearly impossible to predict when problems may occur. The last thing a home buyer wants to worry about after closing is what could possibly break or malfunction in their new home. Unplanned repair expenses can likely create a significant strain on a family budget.  It's a good idea to get a Home Warranty or Home Protection Plan. It's especially a good idea to obtain a home warranty if you're a first time homebuyer with no experience maintaining a home.

Home warranties generally cover major systems such as heating and cooling systems, plumbing, electrical, and large appliances. Some may also cover roofs, pools, spas, pumps, ceiling fans, private septic systems and wells as well. These contracts normally insure these systems regardless of the make and model or age. Home warranties allow for the repair or replacement, for a full year upon closing, and existing home’s covered systems that unexpectedly stop working due to normal wear and tear. The policies are prepaid for a year in advance, at which time they expire or can be renewed.

Now, whether the seller pays for the home protection plan and home warranty coverage or whether the buyer pays for it, will depend on your local customs. It varies and many times is part of the negotiations in the contract.  In many locales, it's normal for a seller to pay for the coverage because it's a seller benefit. Why? See below.

YOUR HOME CAN SELL QUICKER
Statistics from the National Home Warranty Association show that warranted homes sell up to 50% faster than homes without a warranty.  Home warranties remove many concerns, which a home buyer might have about the major appliances, which are bundled into the home sale. It shows the buyer that you are standing behind the home sale and have taken steps to make sure that the major furnishing which are part of that sale are guaranteed.

YOU CAN SELL YOUR HOME FOR A POTENTIALLY HIGHER PRICE
Statistics prove a home warranty can improve the value of your home. Warranties have been known to increase sales prices by up to an average of 3%.

YOUR POST-SALE LIABILITY IS DECREASED
You can reduce the chances of having to deal with problems and the expenses that go with them - after your home has been sold because then the buyer won't be calling after closing if something breaks.  They are fairly inexpensive, typically ranging from $250 to $400, depending on coverage.

SMOOTHER SALE
Providing a home warranty as part of the selling package offers some advantages for potential buyers. The price of a home warranty is minimal and can generally be paid out of the proceeds from the sale of the home at closing. Besides the additional selling feature, a home warranty will normally protect the Seller against expensive repairs during the time that the home is on the market.

BUYERS, HERE’S WHAT HUD HAS TO SAY ABOUT HOME WARRANTIES:
"Home warranties offer you protection for a specific period of time (e.g., one year) against potentially costly problems, like unexpected repairs on appliances or home systems, which are not covered by homeowner's insurance. Warranties are becoming more popular because they offer protection during the time immediately following the purchase of a home, a time when many people find themselves cash-strapped."

TITLE SOURCE USA, INC., through its affiliates, has access to some of the largest and most well known providers of Home Warranties and Home Protection Plans in the U.S.  

Ask your Title Source USA professional about the various plans from these providers: American Home Shield, Old Republic Home Protection, Globe Home Warranty, Broward Factory Service, BFS Home Warranty, Home Buyers Warranty VI, and LandAmerica Home Warranty.