Home Warranty or Protection Plan
Home Warranties or Home Protection Plans can be purchased by either the buyer or seller in a real estate transaction.
There are some very good reasons to pay for a home warranty when selling your home. Providing a warranty can help set your home apart from the competition. Buyers will appreciate having a warranty and will feel more comfortable about buying your home without worrying about hidden problems. Providing a warranty can even result in a higher price, offsetting the cost. Certainly it can make it easier for a buyer to make an offer. These assets make the home warranty an excellent marketing tool.
If you are buying a home and it doesn't come with a home warranty or protection plan, you may want to consider paying for one yourself. The first year after buying a home is a time when most people don't have a lot of cash on hand to cover problems that might arise. Having a one year home warranty in place can provide peace of mind during this time and if something does break down, could really save your budget.
A home protection plan cannot prevent systems or appliances from breaking down, but it can make repair or replacement easier and less costly.
A home protection plan is a service contract that covers the repair or replacement of many of the most frequently occurring breakdowns of home system components and appliances. Home protection plan coverage typically lasts for one year after the close of sale and is annually renewable.
The cost for a one year home warranty typically runs between $300 and $600, depending on the size of the home and the specific types of coverage. In addition to the policy premium, there is normally a deductible of $50 - $100 to pay when making a repair claim.
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