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Home warranties are protection for home buyers and sellers both during and after the sale process. Typically a home warranty is purchased for a one year period. It warranties the major systems, appliances, etc. in a home against failure. There is typically a deductible each time the service provider dispatches someone with the remainder of the cost born by the warranty company.
A seller will often get one when they put their home on the market. The immediate advantage to the seller is that if the air conditioner dies a week before settlement they don't have to come up with the money to replace it. It is also a way of reassuring buyers of an existing home that they won't be hit with large repair costs as soon as they move in!
In our current strong buyers market it's not unusual to see buyers asking for a home warranty as part of their offer on a home. Especially if you're a first time buyer and those first couple of years are tight, you don't want unexpected expenses!
There are a large number of home warranty companies out there. Each plan is slightly different in terms of costs, basic coverage and the per service call fee. This chart give you some of the basic information on the plans.
Home Warranty Service Providers
| COMPANY |
COST |
SERVICE CALL FEE |
OPTIONAL ITEMS AT ADDITIONAL COST |
| First American |
$355 |
$100 |
A/C, Heat & Ductwork for sellers, Pool/Spa, Well Pump, Septic Tank Pumping |
| HMS |
$399 |
$100 |
A/C, Heat & Ductwork for sellers, Well Pump, Whirlpool Tub,
Pool/Spa
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| Old Republic |
$300 |
$100 |
A/C, Heat & Ductwork for sellers, Drain Line Stoppages, Washer/Dryer,
Septic System, Septic Pumping, Well Pump, Pool/Spa, Roof Leak
|
| 2-10 |
$345 |
$85 |
A/C, Heat & Ductwork for sellers, Washer/Dryer for Sellers,
Swimming Pool/Spa, Water Well Mechanical, Water Softener
|
| AHS |
$407 |
$55 |
A/C, Heat & Ductwork for sellers, Swimming Pool/Spa for Buyers,
Well Pump for Buyers
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This chart is meant to be an overview. On most plans you can pay more up front for the warranty and have a lower service fee charge. Many of these companies also have a new home warranty available at a higher cost. If there are specific items that are very important to you, you'll want to look at all the plans and their details carefully.
Home warranties can be a very good thing for both buyers and sellers!
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