What is a home warranty? – Oakland County waterfront home selling tips

When it comes to selling a  waterfront home many sellers wonder what is a home warranty and what does it mean to me?  Some sellers offer a home warranty when listing a home, but many sellers have no idea of what a home warranty is or what are the implications of having one.  Some Oakland County waterfront home sellers are confused and refused to buy a home warranty for the buyer because they do not know anything about it.

So what is a home warranty?  It is a insurance policy that the seller can buy for the buyer to cover the cost of repairs of certain items in the house.  Some of the common items that are covered in a home warranty are appliances, furnaces, air conditioners, hot water heaters, the electrical systems, and plumbing systems.  When I say it is an insurance policy I mean that the seller pays a premium (about $400 in Michigan) to a home warranty company to provide coverage to the buyer.

Furnace warranty

Furnace warranty

So why should a Oakland County waterfront home seller provide a home warranty to a buyer?  I mean really why should a home seller care or provide coverage for a home they no longer own?  It’s all about giving comfort or a warm fuzzy feeling.  The buyer wants to feel good about buying a home, they want to feel good nothing is wrong with the house, or that nothing is going to go wrong with the house.  A home warranty gives them the comfort that if something goes wrong with the house that it is covered.

Let’s say your Oakland County waterfront home has an furnace that is 20 years old.  Sure it may last another 5 or 10 years.  Or it may stop next year.  The buyer makes good money and can afford a new furnace.  The current furnace is still good, so they can’t ask the seller to replace it right now.  But the buyer wants a little assurance that the furnace will work for at least a year.  A four hundred dollar home warranty gives the buyer that assurance.  A four hundred home warranty is a lot cheaper than buying a new furnace.

Hot Water Heater warranty

Hot Water Heater warranty

Some home sellers are confused about a home warranty.  Some sellers think they are on the hook forever when they give a home warranty.  That is so untrue.  When a seller gives a home warranty their liability ends as soon as they give the premium.  They are on the hook for nothing else.  So that is what a home warranty is… a premium paid for an insurance policy to cover any expected breakdowns or repairs to the home on covered items.  There are some exclusions in home warranties.    So if you are a home buyer read what is covered.

So if a buyer asks you the home seller to pay for a home warranty I would always say to my sellers….pay it.  It is a small price to pay to make the buyer feel comfortable.  It is one way simple way to get the home offer accepted.

Have you been thinking about building  a lake home because you cannot find a waterfront property that you like.  Here is an article on Oakland County lakefront homes – building a new home.  Whether you are buying or selling I want you to make a good financial decision.   I want you to end up with more money in the pocket.  That’s our goal for you to keep as much of your money as possible.  Here are some Waterfront home buyer tips – Waterford waterfront properties

Pontiac Lake in White Lake MI  is what I would call an underdeveloped lake.  There are still many small cottages on the lake.  You will not find any mega mansions on Pontiac Lake.  There is a State Park on Pontiac Lake in Oakland County.  Reed Lake in White Lake MI is a small lake.  Portage chain of Lakes Waterfront Properties has so many different types of lakes.  There are big all sports lakes like Strawberry Lake and Portage Lake.  Zuckey Lake is a shallow lake with some sandbars on it.  Zuckey Lake Tavern is also on the lake.  If the chain of lakes seem too big and busy for you then maybe you want to see if there are any Foreclosures on Clark Lake in Livingston County Michigan

 

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