{"id":2370,"date":"2024-01-22T22:44:04","date_gmt":"2024-01-23T06:44:04","guid":{"rendered":"https:\/\/realoq.com\/resources\/?p=2370"},"modified":"2024-08-20T05:32:38","modified_gmt":"2024-08-20T12:32:38","slug":"understanding-home-warranties-home-buyers-sellers-realtors","status":"publish","type":"post","link":"https:\/\/realoq.com\/resources\/understanding-home-warranties-home-buyers-sellers-realtors\/","title":{"rendered":"Understanding Home Warranties for Home Buyers, Sellers and Realtors"},"content":{"rendered":"<p>A home warranty can provide invaluable protection and peace of mind for one of the biggest investments you may ever make &#8211; buying a home.<\/p>\n<p>Whether you are purchasing a new property or selling your current one, having a warranty for your home in place can save you significant money and stress if appliances, systems, or equipment break down.<\/p>\n<p>This guide will explain everything you need to know about home warranties to help inform your decisions as a buyer, seller, or real estate professional.<\/p>\n<h2>What is a Home Warranty?<\/h2>\n<p>A home warranty, sometimes called a home service contract, is a service agreement that covers the repair or replacement costs for a home&#8217;s major systems and appliances that break down due to normal wear and tear. Unlike homeowners insurance, which provides protection against damages and disasters, a home warranty specifically covers system and appliance breakdowns.<\/p>\n<p>Home warranties provide budget protection by paying for covered repairs and replacements during the contract term, often one year. Instead of having to pay the full repair or replacement costs out of pocket, the warranty company will connect you with authorized service contractors and pay for covered costs after a small service fee.<\/p>\n<p>This can end up saving thousands of dollars over having no protection in place.<\/p>\n<h2>The Benefits of a Home Warranty<\/h2>\n<p>There are several key benefits that make a warranty valuable for both home buyers and sellers:<\/p>\n<h3>Budget Protection &amp; Cost Savings<\/h3>\n<p>As mentioned already, a warranty picks up the cost for covered repairs and replacements, saving you significant sums over paying full price. Many claims end up paying for the entire contract cost or more.<\/p>\n<h3>Peace of Mind<\/h3>\n<p>Knowing you have a safety net in place if a home system or appliance breaks down can give you great peace of mind and reduce stress. Instead of incurring an unexpected 4-figure bill, you can relax knowing the warranty has you covered.<\/p>\n<h2>Home Warranty Coverage<\/h2>\n<p>Home warranty plans typically cover household systems and appliances, with heating and air conditioning systems (HVAC), electrical, plumbing, kitchen appliances, and in-ground pools as standard inclusions. More extensive plans may also cover roof leak repairs, garage door openers, ceiling fans and more. Coverage always comes with specified limitations, however, so understanding exclusions is also key when selecting a warranty for your home.<\/p>\n<p>Here are some examples of what is commonly covered:<\/p>\n<ul>\n<li>HVAC system repair &amp; replacement<\/li>\n<li>Electrical system &amp; wiring<\/li>\n<li>Water heaters<\/li>\n<li>Plumbing pipe leaks<\/li>\n<li>Toilets and clogged drains<\/li>\n<li>Ovens, ranges &amp; cooktops<\/li>\n<li>Refrigerators<\/li>\n<li>Washers and dryers<\/li>\n<li>Pool\/spa equipment<\/li>\n<\/ul>\n<p>Be sure to closely review what any plan you&#8217;re considering covers and excludes so you know exactly what protection it provides. Reputable providers make this information readily transparent.<\/p>\n<h2>The Cost of Home Warranties<\/h2>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-2374 size-full\" src=\"https:\/\/realoq.com\/resources\/wp-content\/uploads\/2024\/01\/The-Cost-of-Home-Warranties.jpg\" alt=\"Man,Repairing,Fridge,With,Customer\" width=\"1000\" height=\"668\" srcset=\"https:\/\/realoq.com\/resources\/wp-content\/uploads\/2024\/01\/The-Cost-of-Home-Warranties.jpg 1000w, https:\/\/realoq.com\/resources\/wp-content\/uploads\/2024\/01\/The-Cost-of-Home-Warranties-300x200.jpg 300w, https:\/\/realoq.com\/resources\/wp-content\/uploads\/2024\/01\/The-Cost-of-Home-Warranties-768x513.jpg 768w, https:\/\/realoq.com\/resources\/wp-content\/uploads\/2024\/01\/The-Cost-of-Home-Warranties-600x400.jpg 600w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/p>\n<p>Warranty costs vary depending primarily on your location, size of home, and extent of coverage selected. On average, plans range from $300 to $700 per year. Basic plans for condos and townhomes start around $300, while larger homes with pools, additional appliances, and more extensive coverage may cost over $700.<\/p>\n<p>When researching plans, look closely at:<\/p>\n<ul>\n<li>Your state &amp; region &#8211; costs can vary significantly in different housing markets<\/li>\n<li>Square footage of home<\/li>\n<li>Age of systems &amp; appliances &#8211; newer homes often have lower costs<\/li>\n<li>Coverage inclusions\/exclusions<\/li>\n<li>Service fees per claim &#8211; these vary between $60-$150+<\/li>\n<\/ul>\n<p>Getting quotes from multiple highly-rated warranty companies is the best way to understand typical costs in your area and get the optimal coverage.<\/p>\n<h2>Home Warranties for Home Buyers<\/h2>\n<p>Purchasing a home is likely one of the largest investments you&#8217;ll ever make. While inspection reports help uncover issues prior to purchase, there is always the possibility of an appliance or system breaking down shortly after moving in.<\/p>\n<p>Rather than draining your home buying budget on an unexpected repair or replacement, taking out a warranty coverage plan can give you financial security during the initial years in your new home. If the refrigerator or AC unit dies in the first summer, the home warranty provider will have your back.<\/p>\n<h2>The Advantages for Home Sellers and Realtors<\/h2>\n<p>Offering a warranty as a value-add can be a strategic advantage when selling your property in a competitive market. It shows potential buyers you stand behind the quality of the home&#8217;s systems and appliances, giving them greater purchasing confidence. This can potentially allow you to increase your listing price and sell faster.<\/p>\n<p>For <a href=\"https:\/\/realoq.com\/agents\">real estate agents<\/a>, recommending a warranty to both buyers and sellers demonstrates you add genuine value beyond just facilitating transactions. By protecting your clients&#8217; budgets and giving them peace of mind, you build trust and loyalty that sets you apart from other agents. Happy clients also refer more business. It&#8217;s a win-win situation when home warranties are part of the equation.<\/p>\n<h2>Choosing the Right Home Warranty Provider<\/h2>\n<p>With many warranty companies vying for your business, it&#8217;s essential to do your due diligence when selecting. While cost is a key factor, customer service and dependability when you actually file claims carry much more weight.<\/p>\n<p>Here are key considerations when evaluating providers:<\/p>\n<ul>\n<li>Years in business &amp; financial stability<\/li>\n<li>Trustpilot &amp; BBB ratings<\/li>\n<li>Google &amp; Facebook reviews<\/li>\n<li>Responsiveness of customer service<\/li>\n<li>Speed of dispatching repair technicians<\/li>\n<li>Number of technicians available in your area<\/li>\n<li>Acceptable service partners in your area<\/li>\n<li>Range of customizable coverage options<\/li>\n<li>Ease of quote\/claims process<\/li>\n<\/ul>\n<p>Taking the time upfront to carefully compare warranty providers is the best way to gain long-term value and avoid frustration when systems and appliances need repair or replacement.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-2375 size-full\" src=\"https:\/\/realoq.com\/resources\/wp-content\/uploads\/2024\/01\/Choosing-the-Right-Home-Warranty-Provider.jpg\" alt=\"Choosing-the-Right-Home-Warranty-Provider\" width=\"1000\" height=\"667\" srcset=\"https:\/\/realoq.com\/resources\/wp-content\/uploads\/2024\/01\/Choosing-the-Right-Home-Warranty-Provider.jpg 1000w, https:\/\/realoq.com\/resources\/wp-content\/uploads\/2024\/01\/Choosing-the-Right-Home-Warranty-Provider-300x200.jpg 300w, https:\/\/realoq.com\/resources\/wp-content\/uploads\/2024\/01\/Choosing-the-Right-Home-Warranty-Provider-768x512.jpg 768w, https:\/\/realoq.com\/resources\/wp-content\/uploads\/2024\/01\/Choosing-the-Right-Home-Warranty-Provider-600x400.jpg 600w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/p>\n<h2 class=\"faq\">Frequently Asked Questions on Home Warranty<\/h2>\n<h3 class=\"faq-title\">What are the most common repairs covered by home warranties?<\/h3>\n<p>HVAC repairs, plumbing leaks, electrical shorts, and kitchen appliance breakdowns like refrigerators, ovens and dishwashers are among the most common claims. Well pumps, garage door openers and water heaters are also typical.<\/p>\n<h3 class=\"faq-title\">How does a home warranty differ from homeowners insurance?<\/h3>\n<p>Homeowners insurance covers damage to your home and belongings from disasters, accidents and theft. A warranty specifically covers repairs and replacement costs for home systems and appliances that break down from normal use. The coverages do not overlap.<\/p>\n<h3 class=\"faq-title\">What should I look for in a home warranty plan?<\/h3>\n<p>Look for clear inclusions of major systems like HVAC and appliances, reasonable limitations &amp; exclusions, affordability, strong customer service reputation, and optional coverage add-ons allowing customization for your home.<\/p>\n<h3 class=\"faq-title\">How does the claim process work with a home warranty?<\/h3>\n<p>You pay a service fee per incident (typically $60-$150) and then schedule a repair through your warranty company. They assign an authorized technician who diagnoses the problem. If covered, your warranty provider pays the remaining repair\/replacement costs directly.<\/p>\n<h3 class=\"faq-title\">Can a home warranty be transferred to a new owner?<\/h3>\n<p>Yes, most home warranty plans can be transferred when you sell your home, adding value for the new owners. Specific stipulations vary, so verify transferability with potential providers.<\/p>\n<h2>Get Started on Your Home Warranty<\/h2>\n<p>Whether you&#8217;re <a href=\"https:\/\/realoq.com\/buy\/\">buying a new home<\/a>, selling your current one, or managing real estate transactions as an agent, having a warranty in place safeguards budgets and provides peace of mind against unexpected system and appliance breakdowns.<\/p>\n<p>Taking the time to understand what quality home warranty coverage includes and choosing a reputable, customer-centric provider delivers immense long-term value. As your trusted real estate advisors, the team at Realoq has deep experience identifying home warranty plans that best protect our clients.<\/p>\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-3e41869c wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/realoq.com\/sell\">Contact a Realoq Agent for Home Warranty Information<\/a><\/div>\n<\/div>\n\n\n\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [{\n    \"@type\": \"Question\",\n    \"name\": \"What are the most common repairs covered by home warranties?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"HVAC repairs, plumbing leaks, electrical shorts, and kitchen appliance breakdowns like refrigerators, ovens and dishwashers are among the most common claims. 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Whether you are purchasing a new property or selling your current one, having a warranty for your home in place can save you significant money and stress if appliances, systems, 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