HOME WARRANTIES, ARE THEY WORTH IT?

When one sells their home, they should be looking at their home as if they were the purchasers.

Being as critical as the buyer might be in observing all those facets of the home and pick apart those items that might need improvement or upgrading is tantamount in helping receive the highest price.

This will surely help in determining the initial listing price, when considering selling.

However, home warranties (there are several excellent companies that offer these services, American Home Shield, Choice Home Warranty & America’s 1st Choice are a few) are something that homeowners might consider, (instead of replacing appliances or other high dollar items). Depending on your budget, (prices can be as little as $2 a day) and the level of comfort and security you feel you are willing to pay for, which will cover appliances, refrigerator, stove, dish washer, washer, dryer, heating, electrical system, roof, plumbing etc.  There warranties are usually transferable to the buyer with little or no expense, depending on how it is initially setup.

When dealing with the sale of your home, these items, if in disrepair or problematic, could cause a buyer to ask for an adjustment to the selling price, that would be far greater than initially signing up for a warranty program.

The majority of sellers, never consider this type of option, either because they are not informed about it by their Broker or just don’t want to spend the money.  Depending on the age and condition of your home, this could be a very wise investment, to minimize the impact of defects or issues with those things that are covered by the warranty.

Sometimes, as they say, it is better to be “Penny Wise than Pound Foolish” not to consider a home warranty program.  As a last note, it also might be worth it to get a pre-inspection, If you are in an older  home, to determine its condition and be prepared.  As famous, Benjamin Franklin once said “An Ounce of Prevention, is Worth a Pound of Cure”