Buyers are now looking for assurances that the next home purchase they make will be an investment. They are looking for every means possible to reserve their cash now and avoid any additional costs in the near future due to new ownership. With a home that is not newly constructed comes concerns of upkeep, age of appliances and any other unexpected costs down the road. They do not want their dream dashed away by installing a new heat pump six months after moving in the property. One way to give the buyer added assurance of the properties condition is a home warranty. With many plans a small deduction is paid for the repair or replacement of the item. For example instead of paying thousands for a new heat pump they may pay as little as fity to seventy five dollars.
The cost of offering a home warranty plan for a buyer is small compared to the costs they may occur down the road. What most sellers dont understand is that the plan covers them as well from the day the plan is confirmed through the closing date. The warranty then transfers to the buyer for a full year from the closing date. The benefit to the seller is that in the time period they are selling the home and if they were to encounter a problem like a dishwasher breaking they will pay only the deductible and the item will be repaired or replaced for them. It is generally the seller that will offer the plan but a buyer may purchase it for themselves as well. If the buyer purchases the plan the seller is not covered and any costs that may arise with equipment in the property up until closing will be paid by the seller.
