Wednesday, June 18, 2008

The importance of obtaining a home warranty – When & How to get one

Did you know that more than 50% of the purchase contracts that we write in the Richmond, Hanover, Henrico, Glen Allen, and King William, Virginia area now have a home warranty included? For homes that are more than ten years old that number goes to 75%. Warranty pricing ranges from $350-$450 which covers you for one year and coverage varies. Most home owners feel it is a small price to give some security particularly for the “big” ticket items such as heat pump units, air compressors, water heaters and many appliances. You can ask that a seller pay for the warranty at closing as part of their closing cost or you yourself as the buyer can purchase it. In most cases, the seller has the cost figured into their pricing structure when they determine what price to list the home for. If the home you are buying is more than ten years old, I would recommend that you ask the buyer to pay. If you do not that is $400 to the good they have pocketed and can deduct from what they thought would be part of their expenses at closing. In fact, the only time that I would not ask that a seller pay for a warranty is if you are competing with other potential buyers. In our previous market, this would have been the case – not so much anymore!! Did you know that you can purchase a home warranty at any time? It may cost a little more but even if you have been in your home for years, you can still buy this warranty. You can also renew your warranty after the initial one year has expired. Most warranty companies will send you a reminder with the new pricing structure when your year is almost up. It is VERY IMPORTANT that you know how to use your warranty if an when the time comes that you need it. YOU MUST place a call to the (800) number on your warranty certificate and go through the warranty company for service calls. If you call a contractor out on your own it will not be covered. They usually have a company call you within (48) hours to repair your item. Most of the work that I have heard about is good – with few exceptions. Be vigilant. If you continue to have the same problem – insist on getting a second opinion and lobby to have the item replaced and not just repaired. A home warranty is money well spent if you use it right!! Feel free to call me if you have any questions about a warranty you currently have in place or if you may be interested in finding out how to purchase a new home warranty. At Resource Realty, The Sister Team of Kathy Holland & Cindy Strobel pay for the home warranty of purchasers who purchase a home with them.

Compliments of: Kathy Holland, Broker/Owner

Resource Realty Services