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Underwriting guidelines have tightened and lenders are taking longer to approve home loans. What can you do to close your escrow on time? Home Warranties: Never Buy a House Without One
By Sheryl LandrumHome Worth Columnist
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Home warranties are great for new home buyers, home sellers, and Realtors as well. As a home buyer, your new home is "insured" for a year; secondly, the home seller pays for the home warranty contract. For home sellers, a home warranty guarantee can give you an added edge over other homes on the market and relays confidence in your home's value and home selling price. Finally, for Realtors, home warranties help ensure satisfied customers which generates referrals and builds your reputation as a home professional.
What is a Home Warranty?
It is a one year insurance policy for the home buyer that the home's systems and appliances are in satisfactory condition; or, in case something breaks or fails due to normal wear and tear, it will be fixed or maintained without undue hardship on the homeowner.Home Buyer Benefits--Home Buying With Confidence
- Coverage for unexpected home repair or replacement of many of your home's systems and appliances regardless of the age, make, or model.
- If it can't be fixed, most often the home warranty policy will replace it.
- Security in knowing your budget is protected. While there is a nominal service fee per trade call, there won't be any hidden or major expenses to deal with.
- Service is available 24 hours a day, 365 days per year with just a phone call.
Home Seller Benefits--Home Selling With Confidence
- Offering your home buyer a warranty gives you a competitive edge over other homes in the market.
- A home warranty gives your buyer confidence and affirms your asking price.
- Liability for your home moves off your shoulders and onto a third party.
Realtor Benefits--Building Your Home Selling Business with Confidence
- Satisfied clients can lead to positive referrals.
- Home warranties are a great tool for promoting your listing and the home's value.
- Home warranties help build your reputation as an honest, competent, and thorough professional.
About the Author
Sheryl Landrum is a Senior Loan Officer with First Capital Mortgage of San Diego at the Prudential Realty Office in Bonsall, California.