Friday, October 18, 2013
by Team Lynch Real Estate Consultants
Home Warranties are a service contract to complete future repairs/ or replacement on household appliances and systems. The interest in Home Warranties seem to go in cycles, but bottom line- they do help both the seller and buyer. Once misconception about Home Warranties is that they are only available for "single family" homes. Untrue- they can also be purchased to protect appliances and systems in condo's, townhomes, vacation homes, multi-family homes and rental properties.
What do Home Warranties typically cover? Most policies cover the cost to repair/ or replace the following:
*Furnaces
* Air Conditioning Systems
* Plumbing & Electrical Systems
* Dishwashers
* Ovens
* Garbage Disposals
* Refrigerators
* Water Heaters
and so much more.
Because these items are not typically covered in a Homeowners Insurance Policy, the cost to repair/replace even one item, more than pays for the cost of the warranty itself. And having one in place gives your buyer an added level of protection and comfort knowing that if something should go wrong with any of these....that it will be covered. This is another enhancement to the Homeowners Insurance Policies.
If you're a seller, you should know that research from the National Home Warranty Association estimates that, on average, listings with home warranties sell 50% faster than homes without warranties. And Business Week Magazine indicated that homes with home warranties sell at a premium of 3% in higher price.
Even better...these claims are extremely easy to use! Here are the simple steps you would take to file a claim:
* When a covered appliance or system fails, the home owner calls the Home Warranty company.
* The Home Warranty company then confirms that the failure is on a covered system or appliance.
* If the system is eligible, the home warranty company selects a pre-screened service provider from its roster and asks them to make an appointment with the homeowner.
* When the service provider arrives at the home they will diagnose the problem and call the Warranty company who will then authorize the claim.
* The homeowner usually pays a service fee to the contractor, and the Home Warranty company pays for the balance of the repair.
For more information on Home Warranties or any of your Real Estate questions or needs, give us a call and we'll be happy to assist you!