Buying or selling a home is a trying experience. You have to deal with an ocean of decisions and logistical hurdles. Among the many decisions and complex logistics, you will need to decide whether to purchase a home warranty. This should not be confused with a home insurance. We’ll explain the difference and whether a warranty is worth the money.
Our real estate agents often recommend that home sellers include a home warranty and place it in an escrow account. This is a great bargaining chip that makes the property more appealing to prospective buyers.
According to the National Home Warranty Association, sellers that throw in a warranty sell their home 11 days faster and for an average of $2,300 more.
A home warranty is fairly affordable, costing around $300 to $500 for a year of coverage, starting from the closing date. A seller’s warranty is transferrable and also covers damages that may occur while the home is on the market.
Buyers that did not acquire a home warranty as part of the deal may elect to purchase their own warranty. This differs from home insurance, which often covers damages related to fire, flood, or other natural causes. A warranty cover damages stemming from normal wear and tear.
A warranty can prove to be a valuable investment for buyers, who are often strapped for cash after buying a home. Like insurance, warranties differ in coverage policies. Some also cover essential appliances, such as the stove, fridge, and furnace system.
Don’t go through a home transaction alone. Contact Curtis and Casteel Law Group. We provide various real estate resources for home sellers and buyers in the Lynnwood area. A home warranty is one of the many aspects of the transaction we assist clients with.
Edited by Justin Vorhees
Proudly serving the people of south Snohomish County, north King County, and the Greater Seattle area