January 10, 2019

Home Warranty Programs

There are many benefits to Home Warranty programs for both buyers and sellers.    I spent some time discussing them with Ann Marie Alligood with HSA Home Warranty.  We discussed the benefits to a home warranty in the current real estate market.   There are many companies out there, so I recommend looking at the fine print in their agreements and choose one that works for you.   Prices on warranties run in the $400-$500 range.  Sellers generally offer them to buyers to buyers at a cost to the seller, but a buyer can also buy a warranty.

Benefits to the Seller

The HSA Warranty begins for the seller at the time of listing.   The house will be covered for the seller up to the closing date.  If a covered item needs repaired, the homeowner will just pay the trade call fee.  The seller does not pay for the warranty until closing!  In some cases, the warranty can also be used to repair items noted during the home inspection.  After closing, the buyer will call HSA for any repair issues instead of coming to you or your agent about an issue that came up after closing.

This video is Ann Marie Alligood and I discussing home warranties for sellers.  She is playing the role of real estate agent and I am playing the role of the seller.

Benefits for Buyers

One objection we hear all the time from people considering buying a home is that they don’t want the unexpected repair expenses of owning a home.   When renting, the landlord will fix or replace appliances, heating and cooling, and plumbing issues for the tenant.   With a home warranty, many of these same items and more are covered with a trade fee.  A Home Warranty will give you peace of mind as you move in to your new home.  Typically, the seller pays for the first year of coverage as well.  If you don’t use it, it didn’t cost you anything.  If you do use it, it could save you lots of money and frustration.   You will have one number to call for service.  The warranty company will typically coordinate repairs for you with their vendor partners.  Make sure you read the contract that you receive at closing.



If you have further questions about Home Warranty Programs, please talk to your Realtor.  A Home Warranty is a relatively inexpensive but very valuable investment in the sale or purchase of a home.