When you've already put your home up for sale, the final touch is to create a list of appliances and systems that may need repairs or replacements over time. If your home has a broken or malfunctioning appliance or system, it could pose a challenge when it comes to selling your property or getting the right price. Are you thinking about how to avoid this situation?
A seller's home warranty policy can be incredibly helpful in this situation. A good home warranty plan covers the cost of repair or replacement of any broken or malfunctioning appliance or system, regardless of how old it is. It's a comforting assurance for homebuyers who often don't see whether a home warranty policy is offered before purchasing a home, especially when there are older appliances and systems in the house. Older appliances and systems are prone to issues due to regular use. It's a common misconception that home warranty plans are designed only for homeowners, but they can be targeted at home sellers as well. How does this work? Let's see!
What is a seller's home warranty?
A home warranty contract typically
covers the costs of repairing or replacing specific home appliances and
systems. It goes beyond what a manufacturer's warranty offers, as a home
warranty plan can cover multiple items simultaneously, while a manufacturer's
warranty usually covers just one item.
Most home warranty companies cover a range of appliances and systems like ranges, refrigerators, washers/dryers), electrical wiring, plumbing, and heating and air conditioning (HVAC) systems. Like home insurance, a home warranty policy doesn't cover features or structures like windows, doors, floors, ceilings, etc.
The coverage and costs of home warranty plans can indeed vary from one company to another.
A seller's home warranty offers financial protection in the event of a malfunction or issue with a significant appliance or system in the home before the sale is completed. It's often referred to as a limited home warranty because it typically has a specific time frame of coverage. However, it may also be limited in another sense as it might not provide as many options and may not cover all items, especially smaller standalone appliances, which are often included in standard home warranties. Additionally, there might be a service charge for the technician's actual visit for repairs.
How much does a seller's home warranty
cost?
Well, it can vary, but on average, according to Consumer Affairs.com, you're looking at about $36 to $68 a month, which adds up to roughly $264 to $1,425 per year. Now, when it comes to seller's home warranties, they tend to be a bit more affordable, averaging around $300 to $600 annually or about $25 to $50 per month, as reported by Angi. Keep in mind, though, that the actual cost can depend on several factors, including the provider, the level of coverage you choose, and any discounts that you might be eligible for. For instance, if you're a senior or a military member, you might be able to snag a lower rate for your seller's home warranty.
