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.

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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.

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.  Our goal as your realtor is to put more money in your pocket…to get the best possible price for your home.  The more knowledgeable you are about what may come up in the sales process the smoother the process will be.  I hope this helps you understand the process and what is a home warranty better.

Feel free to call me with any questions on my cell phone at (248) 310-6239.  Also if you buy a  home through me as your realtor I will buy you a new kayak or lawn mower.lawnmower

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Phone: (313) 310-9855 | Email: yesmyrealtor@gmail.com