Is a Home Warranty For You?

Home Warranties are available through most Real Estate Agents. They vary somewhat in coverage and therefore in price, but in general they will warrant the major systems of the house -- heating and air conditioning, many plumbing and electrical components, and major appliances -- for one year. Although there are some home warranty programs that will take effect when you list the house so that you, as seller may have coverage before the house is sold, all warranties will give the buyer at least one year's coverage.

Should you offer a house warranty up front? It may help the marketability of your house. If a buyer, especially a first time buyer, is comparing two homes, one with a home warranty and one without, all else being equal, it may add to their decision about buying your house. It is much like doing a pre-listing house inspection. When you can remove doubts from a buyer's mind, it works to your advantage.

A home warranty may also help to resolve some after-closing problems. For example, if the heating system goes out the week after closing, a house warranty provides security for the buyer, and make for less aggravation for you. Most sellers are more comfortable knowing that once the home closes the chances are reduced for any responsibility to their former house.