Who Pays For Home Warranty- Buyer Or Seller?
By Ronald Matthews
Updated: March 27th, 2020
Home warranty plans can be a valuable asset for any home. They protect the systems and appliances in your residence, at affordable prices, and assure you peace of mind. When they break down, all you need to do is call up the home warranty company, and they get the item repaired or replaced for you. But have you ever wondered who pays for home warranty- buyer or seller?
There are different types of home warranties for buyers and sellers. A buyer’s home warranty is designed to satisfy the needs of new homeowners. It covers all systems and appliances which were fixed before closing of the home purchase deal.
If you are planning to sell your home you can get a seller’s home warranty as this helps deal with equipment that may be faulty before a home inspection. Having a seller’s home warranty in hand can get you a better deal on your property.
If you plan to enter the real estate market in any capacity, it’s crucial to know more about home warranties first. Here are some of the common facts about them.
What Does A One Year Home Warranty Cover?
All systems and appliances mentioned in the agreement while signing up for the plan will be covered. Make sure to choose a plan that suits your home’s needs. You are required to pay an annual premium at the beginning of the contract.
How Quickly Can An Item Be Fixed?
If you are facing any issue with a home system or appliance, call up the home warranty company, and they will send a technician to fix the item within a few hours. The actual repair of the device might take a day or two. You would need to pay a deductible to get the device repaired or replaced.
What Home Warranties Don’t Cover?
Home warranties will not cover any pre-existing conditions in your systems and appliances. Also, If your systems and devices have gone through a lot of wear and tear, they may not be covered. The company may send an executive to thoroughly inspect all your systems and appliances before the contract is signed. You can opt for a home inspection to be on the safer side even if they don’t.
Do you Really Need A Home Warranty?
If you are purchasing an older home with system and appliances, It’s wise to get a home warranty plan. If you are buying a new home, the devices will be new and they may not need repair initially. Protecting older items with a home warranty plan will help you save a lot of money in the long run.
Now that you know a lot more about home warranties let’s get back to who pays for home warranty- buyer or seller?
Quite often, it is up to the buyer purchasing the property who pays for the plan. Sellers usually do not pay for plans after the sale. They only use plans to market their assets. But If you are lucky, the seller may gift a home warranty plan with the home.
Everything should be clarified before sealing the deal. Otherwise, it could lead to complications later on. Make sure to have everything in writing, and only once you are happy, go ahead and sign the contract, (which includes what comes with the property and what doesn’t).
Do What’s Best For You
Whether you are planning to purchase a new home or selling your property, think carefully about your expenses in the future. You may want to buy a car, start a family or go on holiday. Prioritize what’s important at this point and then go ahead with your purchases.
Never make a hasty decision. Do some prior research about home warranty companies if you are planning to buy or sell a home. A lot of your home’s appliances go through natural wear and tear, repairing them can get pretty expensive. Buying a home warranty plan will save you from hefty expenses and not burn a deep hole in your pocket.
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