Home warranties, do you need one? The FOCUS on NoVA Real Estate team walks you through what it is and what it covers.
A lot of people don’t come across home warranties on a daily basis however when it comes to writing a contract or an offer for a home a home warranty does play into it and it a conversation both the seller and buyer need to have with their real estate agent.
SELLERS
When a seller has an older home or at home where some of the utilities are older they will sometimes put a home warranty on the property. What does that mean? That means that they have purchased coverage for their utilities, items like the HVAC, any of the appliances, hot water heater, so if something goes wrong during the transaction process it’s covered under their home warranty, depending on the package they purchased. Think of it like going to the doctor’s. You have a copay when you go, with a home warranty they have coverage but there is a certain copay/deductible that is paid upfront and then items can be fixed and it’s covered by that home warranty service.
BUYERS
When you are purchasing a home that is older or has older utilities you can request in your offer that a seller offer a home warranty package. This covers the home during the process of the listing as well as however long the term is for the home warranty, which is typically a year and then can be extended.
A home warranty can always then be placed on the home at any time. There is a section for it in the contract but that only needs to be worked out if it is part of the negotiation on the house. If a buyer or seller decides to put a home warranty on the property at anytime during the transaction, or a buyer put a home warranty on the home after the transaction, that is all doable.
If you do decide to put a home warranty on the home, for either the seller or the buyer, you can actually do so through the closing cost and not have to pay out of pocket for it. However, if you decide to put the home warranty on the home after the process it would be a fee that comes out of pocket
There are many programs home warranty programs out there you can always talk to your real estate agent to find out which one they would recommend.
If you have any questions about Northern Virginia real estate, reach out as we are happy to help.
