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Understanding Home Warranties

posted by Stephen Katz @ 9:53 AM
Wednesday, May 1, 2013

A home warranty is a service contract that helps protect homeowners from the unexpected cost of repairs and replacements of covered systems and appliances that break from normal usage. They cover water heater, plumbing system, ceiling fans, ductwork, heating system, range, built in microwaves, electrical system, telephone and doorbell wiring. It doesn’t cover the roof, doors, walls, or items not built in. There are optional warranties for roof, well pumps, washer and dryer, air conditioning, pools and spas. The warranty usually excludes items that are not in working condition when the coverage was put into place.

Warranties are usually available through real estate companies and their agents. Generally the seller pays for the coverage to the buyer as part of the transaction. This is called a seller provided warranty. Some purchase them for their own for protection.

The basic cost for 1 year is about $285.00 to $400.00. Optional coverage is per added item like pools or a spa. There is a deductible, which is usually 30.00-50.00. Warranties have proven to be worth the cost of coverage. It is a negotiation tool in a purchase contract.

A warranty provided by the seller will be viewed as a benefit to the buyer. This adds confidence to your listings and may result in someone purchasing your existing home instead of a new one.

Stephen Katz

(770) 309-0939 (direct) or (866) 742-8400 -- For the past 18 years, Stephen Katz has built a successful business almost entirely on referrals. As your mortgage consultant throughout the home loan process, Stephen will explain the pros and cons of all available mortgage programs and help you choose the financing option that is best suited to your needs. Throughout the loan process, he will keep you informed and will respond quickly to your requests with answers and solutions. Consistently a top producer, Stephen is a Mortgage Bankers Association "Diamond" Award winner, a Georgia Mortgage "Top Gun" and has closed almost half a billion dollars in loans. Put his knowledge and experience to work for you!

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