A home warranty is an insurance policy that protects a resale home buyer or current homeowner when dealing with unexpected repairs; mechanical, electrical, and plumbing items, as well as some appliances, inside the home. Optional coverage is available for more expensive systems such as air conditioners, refrigerators, pools and spas.
The Seller may purchase a home warranty plan prior to selling to protect against repairs needed during the listing period and the Buyer may be able to assume the policy at the close of escrow, or the Seller may offer to purchase a home warranty policy for the Buyer.
As a seller, offering a home warranty plan may provide these benefits:
-
Increase the marketability of your home by reassuring potential Buyers.
-
Help sell your home faster and at a higher price.
-
Ward off potential disputes for repairs and/or replacement of covered items after the sale.
- Protect against repairs during the listing period or identified during inspections.
Most home warranty plans can be paid for at the close of escrow. A copy of the invoice is presented to the escrow office and becomes part of the Seller’s closing costs.