Before you buy a home, it’s important to consider how you will protect it. One way to do this is by purchasing home warranty coverage. Technically speaking, it is not an insurance policy, but it’s similar in some ways. It requires a premium or upfront fee in exchange for covering unforeseen repairs and damages. If you’re on the fence about getting a warranty, below are three reasons to do so.
Why Invest in a Home Warranty?
A basic home warranty usually covers major components, such as air conditioning, furnaces, electrical systems, and plumbing. Its one-year coverage includes appliances like washers, dryers, and refrigerators as well. Keep in mind that premiums go higher with optional coverage on a pool, spa, well pump, and septic systems.
A basic plan will typically cost a few hundred dollars with enhanced versions costing a bit more. However, a major unexpected home repair, like a roof replacement or re-wiring of the electrical system, could cost thousands of dollars—a lot more than the cost of the warranty. It’s particularly beneficial to homebuyers with low or depleted savings since they only need to cover their deductible and not the full cost of repairs should they need it.
When you buy a home, especially in an unfamiliar area, you have yet to know any trusted service providers. A home warranty comes in handy when faced with this dilemma. A provider will have a list of reputable service companies and contractors that you can call on anytime when something in your home breaks or fails.
3. Extra Assurance
While a warranty protects buyers from costly unforeseen repairs and gives them access to trusted home contractors, it also benefits the seller. Homebuyers are always on the lookout for the best offers on a property. As such, bundling home warranty coverage into your selling price is an attractive offer might clinch the deal. The warranty prevents the sale from being postponed should something in the home break before finalizing the transaction. It also gives the buyer the confidence to submit their best offer.
When planning to buy a home, consider purchasing a home warranty for added peace of mind. Trust the seasoned real estate agents at Lawrence Realty Inc. to help you pick the right provider. Based in Red Wing, MN, their team of local realtors are renowned for their service in the city and the Western Wisconsin area. Call (651) 388-4745 or browse their real estate listings online.