If you’re like most people, you’ve heard of home warranties – but what are they, and should you invest in one whether you’re buying a home in Phoenix or selling one?
Here’s what you need to know.
What is a Home Warranty?
A home warranty is a policy a homeowner can buy to cover the costs of repairing or replacing home appliances that break or go haywire. Every home warranty policy is different, and some cover things that others don’t, but here’s how they work:
- An appliance or home system breaks down
- You call the home warranty company
- You pay a service fee
- The home warranty company calls a contractor to diagnose the problem
- The contractor diagnoses and repairs the problem, or replaces the appliance
That’s really all there is to it.
But is a home warranty a good choice for you, or is it a waste of money?
How Much Does a Home Warranty Cost?
The average home warranty policy costs between $400 and $600 for a year of coverage. Many home warranty companies allow you to buy an annual policy, and others let you make monthly payments.
You will have to pay a service fee each time you have the warranty company send out a technician or contractor, though. (If the same contractor comes more than once to fix the same issue, you won’t pay separate service fees – but check your policy documents to be sure.)
Should You Ask a Seller to Buy You a Home Warranty?
If you’re buying a home, your Phoenix REALTOR® can ask the seller to purchase a home warranty for you. A lot of sellers are happy to do so, because a warranty makes buyers more comfortable (and provides peace of mind just in case something goes wrong). It can’t hurt to ask – so you may want to discuss your options with your REALTOR.
Should You Buy a Home Warranty for Your Buyers?
If you’re selling a home, a home warranty is a nice touch. Your buyers may ask you for one, or you might think about offering one – it’s up to you and your agent. If your buyers do ask you to purchase a home warranty, it’s worth considering; it can be one of those things that tips the scales in your favor and keeps your buyers happy through the end of the deal.
Are You Thinking About Buying or Selling a Home in Phoenix?
If you’re selling a home in Phoenix, Cave Creek, Anthem or Scottsdale, we can market it to all the right buyers so you can sell quickly (and at the right price). Call us at 602-332-6188 to learn more.
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