Home warranty is a policy created to protect the buyer against various repair costs of mechanical systems and major appliances. The annual warranty costs around $335 for basic protection (and about $400 for comprehensive coverage) which is sometimes offered by the seller as a concession or negotiated within the contract. A charge of about $55 is paid by the buyer when a service call occurs. There are many different home warranty plans which can cover everything from heating, air conditioning, dishwashers, etc.
For the buyer, this means you will have coverage for your major mechanical systems and built-in appliances. When something breaks, a qualified technician is at your service. You won’t have to worry about paying a large bill should something major need repaired, which is a huge relief for your budget.
For the seller, there is optional coverage during the listing period of the home sale. A home warranty can also protect you from legal disputes that could occur after the sale. Having a home warranty offered can result in a quicker sale at a higher price and increases your home’s marketability.
You can even get optional coverage for swimming pools, washing machines, spas and septic systems for an additional charge. A home warranty is not required but is definitely worth looking into for both the buyer and the seller. Don’t forget to renew your home warranty policy every year!