HOME WARRANTY

In addition to inspections, you can also obtain a home warranty that will cover the major systems for the new buyer. These will include heating, air conditioning, electrical, plumbing & appliances and more. The typical home warranty costs approximately $275.00 to $400.00 per year depending on what additional items you may choose to have covered. For an additional fee, you may choose to have coverage for pools and their associated electrical appliances, as well as, other items usually not covered such as washers, dryers, refrigerators, etc.

As a For Sale By Owner, you may want to advertise that the home warranty will be included with the home sale, (you pay the first year) and the money will be well spent. Once a buyer takes possession of his new home, it can be very troublesome and expensive if major systems break down. The home warranty company covers these items just like an insurance policy and the coverage can be renewed each year if desired.

In the event of a problem, the home warranty company will charge a deductible, usually $25 to $50 per claim, and will then send out their approved repair companies to take care of the problem.

Consult your local yellow pages for listings of home warranty companies or ask your local real estate company. You can also contact some of the larger air conditioning and heating companies who contract with these home warranty companies. They will be happy to give you the names of the ones they deal with.

Be careful to select a reputable home warranty company. Check out their track record with your local Realtor or the Better Business Bureau.