Use a Home Warranty to Help Your Home Sell Faster

If you are thinking of selling your home, you will be given the choice of buying a homeowner's warranty. What, after all, is a home warranty? And how does it improve the chances of getting a better deal when you sell?

OK, So What Is It Anyway?
A home warranty is a policy that provides coverage for all the repairs or replacements of any appliances or major systems in the home. This typically includes such things as electrical, waste disposal, heater, built-in microwave, dishwashing unit, cooktop, range, and similar items. Coverage may also include other items such as the Jacuzzi and hot tub. This is comparable to the homeowner insurance but while homeowner policies provide protection against risk of damage to the house and the personal belongings within that are caused by factors or occurrences such as losing valuables, the home warranty provides coverage on failure of systems and appliances in the home.

Those who have a home warranty are covered against having to pay the major costs that would be incurred if any of the systems or items in the home break down. There is normally only a small fee involved for a house call for repairs. These charges are usually negligible if you compare them with the expenses one would face if the system or appliance would have to be replaced. The price of a home warranty policy is less than a homeowner policy, which is due to the narrower range of hazards covered and the generally lower cost of what is covered. For example, a homeowner policy will have to cover the structural damage if a tree falls on your house; comparatively speaking, your trash compactor or dishwasher is easy.

One good thing about getting a home warranty is that it can be obtained by anybody, without regard to the type of house. A home inspection might even be waived as not necessary to get a policy. The contract will state clearly what is covered and what is not.

Depending on how much you are willing to pay, you would need to decide on a policy length. You can have a policy for as short as a year and there are longer contracts up to lifetime. In general, a longer contract period will have a lower cost per year. If you are selling, though, offering to buy a contract for a year's period is typical, to provide a break-in period. The new homeowner can then decide about the renewal.

As with any services, the home warranty comes in various "flavors" and you will find a variety of quotes from providers, each touting different combinations of features. In order to get a good deal, you should look into a few sources. Using the Internet makes it easy to become informed and make a good selection.

Having a home warranty can be an attractive advantage for a buyer. If you are the seller, providing one gives that advantage to you.

This content was provided through Automated Homefinder, the Denver real estate specialists of Colorado.