Many people are in a position where they need housing. If you find yourself needing to sell a home or buy a home in today’s Coronavirus environment, here are some guidelines and best practices.
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 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.
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, ....