Mike Brown Group

Ask a REALTOR® – What is a Home Warranty?

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When buying a home, it’s frequently a good idea to request a home warranty to be part of the sale, especially if the house is older. A home warranty is a service contract that guarantees specific components and systems of the home. These can include the HVAC system, appliances, plumbing, and more. Home warranties can cover the cost of repair or replacement of items included as part of the warranty coverage. Please note that these types of warranties are different than the warranties that are provided by builders of newly constructed homes.

Now imagine having an oven that doesn’t heat, or the air conditioner breaks down in the middle of the summer. A home warranty can generally protect against those types of events.

A home warranty provides peace of mind and can protect your budget against unforeseen breakdowns. Buyers are protected when covered appliances suddenly break down after closing. For sellers, a home warranty protects items, especially if buying a new house is contingent on selling their existing one. A broken appliance could derail negotiations or delay closing.

Home warranties also offer convenience as you don’t have to worry about finding a repair company, as the home warranty servicer will take care of making those connections. Contacting the home warranty servicer first saves you time and money.

A variety of companies offer home warranties, and pricing depends on what is covered, as well as duration. Some companies provide more value than others, so the best advice is to shop around if you decide to purchase a home warranty on your own.

No one can predict when an appliance or a vital home system will fail. However, having a home warranty protects against these surprises and provides you peace of mind should the unthinkable happen. Home warranties are a great value when buying or selling a house, or even having coverage for your existing home.

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