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Home Warranty Plans

There are several home warranty plans available in today's market.  They are all different yet are very similar in the way they apply to homes.  Warranties can be purchased by either the Seller or the Buyer.  In those cases where the Seller purchases a Warranty Plan, the plan would cover those specified items within the home during the period the home is made available for sale.  Such items are built-in appliances, hot water heater, plumbing, electrical etc. (plans vary).  Should an item that is covered by the warranty program you've chosen fail during the listing period, it would be eligible for repair or replacement with a small deductible owed by the Seller.  The cost of the actual plan is paid for at closing.  In other words, no money is paid towards the cost of the plan until the property is sold and closes (except for deductibles due on repairs during the listing period).  The Seller plan has certain limitations that apply during the listing period, e.g., heater & air conditioner MAY NOT be covered items.  Be sure to read the Warranty Program to see what is covered.

In the event a Seller elects NOT to provide a warranty, a purchaser can obtain one.  The plan has the same deductible and covers the purchaser for up to one year after closing.  Some of the plans have renewable options that my apply at the owners discretion.  The actual provisions of the plan are too complex to list - read the policy carefully.  If you have any questions, consult your warranty provider.  Once a Seller elects to participate in the program, the program CANNOT be negotiated out of any agreement to purchase.

A Home Warranty can help eliminate any hard feelings when a Buyer closes on a home and days or weeks later has a major appliance failure.  Did the Seller know or not know that it would fail?  Statistics have shown that homes with warranties tend to get higher prices than homes without a warranty.  Which one would you buy; a home with a warranty or a home without??