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Home
sellers should consider providing a home warranty
policy as part of their sales offer. There
are so many things to worry about when purchasing a
home and typically, a major worry of a prospective
buyer is that something
breaks or doesn't function properly after they move
in and they may have to incur a large expense at a
time when cash is at a minimum due to the home
purchase. For a newly constructed home the builder
generally offers a 1 year full warranty. For resale homes there is
even a higher risk for buyers since
appliances, furnaces, air conditioners, water
heaters, roofs, etc. are older and may be near the
end of their life cycle. Real Estate professionals,
as well as sellers, are also concerned that if something occurs after the closing,
buyers will be less than fully satisfied with their
home buying experience and problems may arise after
closing. Sellers
offer the policy to gain a competitive edge by
increasing the appeal of the
home to buyers. If not offered, a policy is often requested
by the buyer in the Purchase Agreement. A
1 year home warranty policy typically costs a seller
between $300 and $400 and has some coverage for the
seller while the home is on the market. The
coverage for a resale home has a deductible amount
of $75 to $100 per occurrence and typically covers
the following for the buyer: |