Home warranties are becoming more and more popular and because they only cost about $600, if anything should go wrong within the first year of homeownership, the home warranty will usually cover it. A recent situation definitely showed the importance of a home warranty.
A fellow agent had recently sold a home and the homeowners had since moved out. The new buyers were set to close and receive the keys by 6 PM. The previous homeowners had left at noon, locking up the property and leaving. By the time the new homeowners arrived after 6 PM, the water heater had exploded and completely flooded the entire garage and part of the inside of the house. So, whose responsibility was it?
The question of when a property closes is often a controversial subject. Does it close when the buyer gets the keys? Does a close when the deed is recorded? Does a close three days after allowing the homeowner to have time to pack up and move out?
This is why details in the purchase and sale contract are so vital. All of these details state specifically when the property closes and when it is now the responsibility of the current owner. However, in this case, the buyer’s agent purchased a home warranty literally at noon the day of closing. Because that home warranty was in the new homeowner’s name, they literally could use it right that day. They were able to call the home warranty and get a new water heater, clean up the home, and that warranty will cover over the next 12 months should anything including appliances, heating and electrical issues, HVAC systems, furnace, sometimes even roof, siding, and flooring.
Purchasing a home warranty might sound expensive on the front end but the peace of mind knowing that if something should happen your homeowners or even you are covered for a year is priceless.
A home warranty can be bought by a seller to entice buyers, the buyer’s agent as a gift to their buyers, or even the buyer themselves. Home warranties can also be purchased after closing by the homeowner. This is a great way to make sure everything is covered and if something should go wrong, you only have about a $75 deductible to pay to get things repaired or replaced. This is quite a bit lower than a $1200 water heater or even a $10,000 roof.
Give me a call today if you are interested in purchasing a home warranty. I have several resources to contact and can answer any questions about home warranties or buying and selling property in Snohomish County.