Home warranty plans, also known as home protection plans, provide coverage for home appliances and major heating, electrical and cooling systems in the event they fail or break down. If any of the items under warranty in the program should fail, the consumer simply contacts the home warranty company, and they see to it that the item is inspected, repaired or replaced by a qualified contractor for a small “service call fee” (typically $60-$75).
Having a policy in place makes a home, particularly an older home, more attractive to buyers, as it can provide piece of mind knowing there will be coverage for unforeseen repairs upon move in. They can also save the day and speed turnaround time during the escrow itself as having a warranty in place will take care of any last minute problems of failing appliances and systems that can lead to re-negotiations when it is time to close.
Research has shown that homes with a warranty plan sell faster and at a higher price point. Warranties are a very affordable way to help ensure a smooth home sale transaction and increase both seller and buyer satisfaction.
For more information on home warranty plans, check out the website of our partner American Home Shield.