Whether you’re a first time homebuyer or someone who is selling their home and moving into another; Dean Graziosi shares that a home warranty could provide you valuable protection for your home while also providing you with peace of mind. If you’re not familiar with what exactly a home warranty is, I have listed some important information below.
It has become common practice for many homebuyers to choose to purchase home warranties when they purchase a new home. The average cost for a home warranty is between $350 – $500 for basic coverage and an additional $100 – $300 for more extensive protection. Homebuyers, especially those who are purchasing their first home, like the protection that home warranties have to offer. They like the fact that if anything should need to be repaired they can rely on the warranty.
For sellers, the purchase of a home warranty can be a wise investment to protect their property while they have it listed; especially if their home features older appliances and systems. When their home sells, they can then transfer ownership of the warranty to the new buyers. This may also provide them with an added incentive to attract buyers to their home, especially if they are concerned about any repairs that the home need during their first year.
When you purchase a newly built home, you can typically expect to receive a one-year warranty on appliances and systems installed in the new home. You may also receive a 10-year warranty on structural elements which were paid for by the builder; but when you purchase an older home you will likely not receive any type of warranty.
Whether you’re buying or selling a home, you should understand that a warranty is designed to cover specific items under that service contract. Should a problem arise, you will then need to contact the company holding the warranty and they will then send a repair person to your home. You will likely have to pay a service fee, but that is a small amount compared to what some repairs can cost.
Dean Graziosi recommends that before you purchase any type of home warranty, you carefully and thoroughly read the terms and conditions. This will help you determine whether the purchase of the warranty is a good investment for you. It is important that you fully understand what items in your home are covered, and any limitations of your policy and how much you will need to pay in fees. If you’re selling your home, you may want to consider purchasing a warranty to protect you while your home is listed. It can help save you money on any repairs that the home may need during this time.