One of the most common anxieties among home buyers is having unforeseen repairs and expenses once the home purchase is finalized. Often, buyers deplete their savings to secure their new property and find themselves financially unprepared for substantial post-closing costs. Although it's impossible to eliminate the possibility of home repairs and replacements post-closing, a home warranty can offer a reassuring sense of security to new buyers. You may ask - What is a home warranty and why should I consider getting one as a part of my closing package? A home warranty is a service contract that provides coverage for the repair or replacement of major systems and appliances in the home. Here are 5 reasons that you should consider a purchase at closing
Budget Protection
Coverage for Wear and Tear
Easy Repair
Saves Time and Effort
Peace of Mind
If you are considering purchasing a home warranty, talk with your Realtor and a Sales Rep for a couple of warranty companies. Compare their coverage, the upfront costs, and the ease of use. Review their brochures and familiarize yourself with what is offered. Make sure that you understand that there will be trip charges to get the contractor out to your home but usually, these charges are reasonable. The question of who pays for the home warranty – the buyer or the seller is negotiated in your purchase contract. Usually, home warranties are for 12 months and can be renewed on an annual basis.
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