Home Warranties
Buying a home can be a very confusing process for someone who has never done anything like it before. There are mountains of paperwork to complete, and that does not even happen until you have gone through the long process of finding the house at the right price!
Once you have found the right house, took out a mortgage and made all of the necessary arrangements, you will find that there are still many small details to consider.
And one of those small details is the home warranty.
An October 5, 2006 article by Elizabeth Weintraub of about.com, “Home Warranties – What is a home warranty plan?” looks into the importance of making sure your new home is protected by one of these plans.
Home warranties are extremely important for new home owners because there are a lot of things that can go wrong after the transaction is completed.
These plans protect a homeowner from common problems that can occur with things such as appliances.
“Whoever dreamed up the idea of home warranties hit upon a gold mine. They have become an essential today in most real estate transactions across the country, if for no other reason than to isolate the seller from buyer hysterics after closing. Buyers tend to jump to the conclusion that if something breaks or malfunctions, it's because the seller tried to cover up the problem.”
It seems to be Murphy’s Law that everything could be working perfectly in a house and as soon as it is sold, things start to go berserk. It is not as though the seller is trying to withhold any problems, it is just the Universe working it’s magic; and this is exactly why home warranties are so important.
“The last thing a home buyer wants to worry about after closing is what could possibly break or malfunction in her new home. Since that can cover a multitude of items and systems, for peace of mind, it's a good idea to get a home protection plan. It's especially a good idea to obtain a home warranty if you're a first-time home buyer with no experience maintaining a home.”
Deciding on who pays for the home warranty is usually a matter of local custom. In some areas, it is customary for sellers to pay for the warranty because it protects them from having to deal with the buyer when the dishwasher malfunctions.
Warranties usually cost a couple of hundred dollars, so in the big picture of a house transaction, it does not seem like a very big deal.
“Home warranty companies sometimes run special sales and either discount policy prices or offer additional coverage for the same price. The policies are prepaid for a year in advance, at which time they expire or can be renewed.”
If something happens to a home system or appliance, you would contact your home warranty company and they would work with you to schedule a repair and fix the problem. Occasionally there are discrepancies, especially if a new home owner thought something was under warranty that really isn’t. If this happens you should contact your real estate agent, and they should be able to help you.
The importance of a home warranty is ten-fold and will help to ease a lot more worries and stress in the future.
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