What is a home warranty?
Before we go into talking about the benefits of purchasing a home warranty, it is necessary to give more insight as to what it is. A warranty in simple terms is a policy a homeowner pays for and it covers the cost of repairing a lot of house appliances if they break down. A home warranty provides financial protection from the service provider for house owners who might experience unexpected problems with their home appliances.
You should be careful not to mistake a house warranty for homeowners insurance. Homeowner insurance covers the structure and belongings of your home in the event of an accident such as fire, flood, storm, and many more like that. On the other hand, a home warranty covers repairs and replacements, not calamities.
For a better understanding of a home warranty, some of the major things it covers are these:
- Basic home systems like plumbing and electrical
- Heating and cooling systems such as the water heater
- Appliances including the dryer and washer
- Kitchen appliances like the range, oven, garbage disposal, and built-in microwave
The benefits of the warranty are not limited to just home buyers. In the Greater Chattanooga area, a home warranty can also benefit sellers and real estate agents. Sellers can offer a home warranty to the buyers as an incentive to purchase the home.
Benefits to the buyer
Security and protection
Moving from a home to another requires a lot of time and expense from you. But with a home warranty, you will have confidence during this process and even beyond. This is because you know that any repairs of a covered appliance or system would not cost you time and money.
The convenience that a home warranty gives to you cannot be over-stressed. It provides the buyer with an easy and time-efficient way to find service providers when any of the covered items break down.
Peace of mind
One of the greatest benefits of a home warranty is the peace of mind it gives the buyer. You can just relax and avoid worrying about the repairs of appliances in your home. With a home warranty, issues like a broken air conditioner or leaky toilets are not a crisis anymore. With just a phone call, you can easily fix issues like that. Of course, these are all costly repairs that would have cost lots of money and might have even brought financial hardship. You won’t have to worry about them if you purchase a home warranty as they will be covered under it.
If you are purchasing a home, your warranty for the first year may be free. It is very common these days for sellers to include a home warranty in house sales in the Chattanooga area in order to encourage confidence and attract more buyers. Even if the house lacks free warranty, your real estate agent in Chattanooga may help you negotiate one from the seller.
Protection from major debts
Some issues, such as plumbing system breakdowns or broken air conditioners, can cost an arm and a leg to repair or replace. If you are the type that has no emergency savings account, such expenses can wreck you financially and will ordinarily need a payment plan. However, with a house warranty, situations like these are avoided.
Benefits to the seller
A home warranty is good for the seller as much as it is for the buyer. As a result of this, below are the few benefits of a home warranty for the seller:
Protection against complaints and de-marketability
If you have homes for sale in Chattanooga, a home warranty provides you with a measure of protection against complaints that may arise about home defects after the sale closes.
A home warranty provides security for sale. It prevents the sale from being postponed or derailed if items that are covered by the home warranty break down during the transaction
Home warranty instills confidence in your buyers. It gives them the courage to submit their best possible offers for the home up for sale which is to your own benefit as a seller.
Benefits to agents
Home warranty also works to the advantage of agents. Agents from Keller Williams in Chattanooga prefer it when the deal involves a home with a warranty. Some of these benefits of a home warranty to real estate agents in Chattanooga include:
- Helps to make happy customers
- Increases referral opportunities
- Reduces liability after the sale. If an item covered breaks down, the new house owners can get in touch with their home warranty company and it will be fixed.