Home warranties have been popular for many years here in Cleveland Ohio. For those who do not know what they are, they are insurance policies for a home buyer or seller. Sellers can sign up for one while their home is listed and a buyer can accept the one offered by the seller. If one is not offered, the buyers can negotiate it in the contract, and it can be paid by either party, but most often it is paid for by the seller. If the seller will not provide one, the buyers can buy it themselves.
Every home warranty plan differs, and that is the point of this post. Like any other business, there is competition so one company may offer something another company does not. In general, home warranties will cover, heating, cooling, plumbing, and appliance repairs. I have not heard of one that will cover a leaking roof nor a leaking basement. Some will cover the inside damage a leaking roof may cause, but there are limitations.
Each policy will carry a deductible for the buyer. I have seen them as little as $50 but the average is closer to $75. Many will have strict provisions in place. One of the most common ones I know about is that the buyer should always call the home warranty company FIRST, before arranging for repairs. The company will want to approve the repair company and some can even refuse the repair if the new homeowner does not follow protocol.
I know of one plan that covers all appliances except the washer and dryer. The extra cost for those items is around $80.
My point is that all these companies have different requirements and policies.
Most of the sellers I deal with will offer a home warranty plan. It's attractive to a home buyer and somewhat comforting to know that they have a little extra coverage during that first year of home ownership. However, since they vary so much, I think it's a good idea to review the home warranty before you agree to it.
It is a good idea for buyers to make the review of the home warranty a contingency of the contract, in the same way you would make an offer contingent upon review of HOA docs or condo declarations and by laws. It will help buyers know specifically what is covered and what is not.
If you would like to buy or sell a home in the southern communities of Cleveland Ohio, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real Estate, Parma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate. Information is obtained from Neohrex (Northeast Ohio Real Estate Exchange) and is deemed reliable but not guaranteed and should be independently verified. Properties subject to prior sale, rental, or other status changes. All properties that are advertised as being listed or sold by Barb Szabo are in conjuntion with ReMax Trinity.
 |
 |
 |
