Home Warranties What You Should Know

Dated: 11/18/2019

Views: 123

Image result for home images

Sellers are starting to offer a one-year home warranty to cover repair costs for items such as Roof, HVAC, plumbing, appliances, pools, etc. The tactic, which is gaining popularity, is meant to give home buyers peace of mind that they won't have to shell out cash for pricey improvements after moving into the home. It also benefits sellers, as a buyer will have less incentive to ask for large credits for items that may be at the end of it's life yet still functioning properly. It also may deter buyers from, after the close of escrow, seeking remedy from a seller. Seventeen percent of sellers have offered a home warranty as an incentive to potential buyers, according to research from the National Association of REALTORS®. 

The typical coverage is one year and after that the buyer has the option to renew. Costs can start at $385 for a condo and $435 for a single family dwelling. From there upgrades can be added like pool and spa coverage ($170), solar components coverage ($250) , AC ($80), appliances ($50-$80), septic systems ($90).  Some states even build home warranties into the contract. “People today are staying in their homes a longer period of time—an average of nine to 10 years,” Jessica Lautz, NAR’s vice president of demographics and behavioral insights, told the Journal. “If you’ve lived in your home for that amount of time, there may be some systems or appliances that are in need of repair.”

If a home buyer does opt for a home warranty, it is advised not to forgo the home inspection. Inspectors assesses items that aren’t covered by a home warranty, such as the non mechanical and structural components. It's also important to note that if a problem exists with the home, and it can be determined to be “pre-existing” it may not be covered by the home warranty company after the close of escrow.  If something isn't working, it is advised to have it repaired prior to closing, so as not to void the warranty. 


Source: https://cdn2.hubspot.net/hubfs/2596967/product-pdfs/5_3PDFs/CA_5_3_CRES_13_Brochure_3.pdf

Source: https://magazine.realtor/daily-news/2019/11/18/the-home-warranty-catch-your-buyers-should-know?AdobeAnalytics=ed_rid%3D3012649%26om_mid%3D1675%7CRealtorMagNews_2019_11_18%26om_nytpe%3DREALTOR%20MAG%20NEWS

Blog author image

Raul Acuna - CA BRE #01708572

Raul Acuña - Raul has been in the Real Estate Industry since 2005. Raul began working at an REO brokerage before opening his own REO company in 2010. Raul has a business degree from Cal Poly Pomona, ....

Want to Advertise on this Site?

Latest Blog Posts

Home Warranties What You Should Know

Sellers are starting to offer a one-year home warranty to cover repair costs for items such as Roof, HVAC, plumbing, appliances, pools, etc. The tactic, which is gaining popularity, is meant to

Read More

Covina Home Coming Soon

4008 N Orange Ave, Covina$450,0002 Bedrooms1 bathroom809 sq ft5,165 sq ft Lot1950 Yeart BuiltFor more info contact:Raul AcuñaAcuña & Co. Real Estate626-374-8479raul@acunaandco.comCA BRE

Read More

New Condo Rules Will Open More Doors For Buyers

NAR: New Condo Rules Will Open More Doors for BuyersThe association says changes to FHA financing qualifications will bring more entry-level homes to the market, helping to meet buyer demand.The

Read More

Southern California Homeowners Rush To Sell As Listings Jump 18 Percent In A Year

As of May 30, 36,335 homes were listed for sale around the region — up 14% in a year.Southern California homeowners increased the number of homes for sale in a year by 5,672 — or 18% — as

Read More