Should a Home Buyer or Seller Purchase a Home Warranty? What Should You Consider When Purchasing One?
Evidence shows that both buyers and sellers should consider purchasing a Home Warranty. A Gallup Poll survey indicates that 8 out of 10 buyers prefer to buy a home with a warranty. Business Week Magazine reported that homes with warranties return a sales price that averages 3% higher. And a National Home Warranty Association survey show that homes on the market with a warranty included sell on average 50% faster than homes without.
Here are some items you should consider having covered:
- Plumbing System
- Electrical System
- Central AC
- Duct Work
- Water Heater
- Heating System
- Heat Pump
- Exhaust Fans
- Refrigerator
- Food Spoilage
- Dishwasher
- Range/Oven
- Microwave Oven
- Clothes Washer
- Clothes Dryer
- Garage Door Openers
- Ceiling Fans
- Sump Pump
- Well Pump
- Laptop
- Fax Machine/Multi-Function
- Printer
Here are some additional considerations:
- Can the warranty be transferred? At what cost? Can it be renewed?
- Does the warranty cover the full replacement cost?
- Is there an additional charge for excess square feet in a large house?
- Is a qualifying home inspection required?
- Do age restrictions apply?
- Can the warranty be upgraded?