(blog) How Home Warranties Work — Keeping it Real (Estate) with Deanna

I’ll be honest, when I first got into the real estate business I wasn’t so sure about home warranties.  The additional $380 or so to the seller seemed like more of a luxury than a necessity. However, now I am one of the biggest proponents of the warranties as I have seen them save sellers hundreds pass what the warranty cost.

The warranties vary, but in a nutshell they cover major mechanicals. Furnace and central air can be added for a small charge. I have had customers use the warranties on stoves, refrigerators, four season heaters, toilets and more. They really do save a bundle as once the warranty is in place (often it is free during the listing period) the seller or buyer whoever is submitting the claim only pays a deductible, usually $75, and they get their problem fixed as long as the cause was from normal wear and tear, i.e. a toilet overflowing from a child sticking a stuffed animal in and flushing won’t be covered.

The warranties are great tools for sellers who have older mechanicals, but everything is working great so they don’t feel the need to upgrade. It provides buyers with peace of mind that if anything went wrong that first year that they would be covered. Of course, they should still base any offer contingent to a home inspection by a licensed professional.

Have a real estate question? Give me a call or send me an e-mail. I would love to hear from you!

Thanks!

Deanna

Deanna Howard, Realtor, SFR, CREN
Iowa Realty
752 10th Street
Marion, Iowa, 52302
(319) 929-3836
dhoward@iowarealty.com

www.deannahoward.com