Home sellers can offer a number of incentives to potential buyers. One of the most effective is a home warranty.
First time home buyers are often on tight budgets and concerned about any additional expenses or future repairs, so they really notice homes that include a home warranty.
Home warranty plans usually cost between $300 and $500. Plans vary in coverage, but typically cover heating and cooling systems, plumbing, electrical and some appliances. Most plans also offer optional upgrades which can include washers, dryers, and refrigerators.
If the seller agrees to provide a buyer with a home warranty, many plans provide the seller with free warranty coverage for themselves during the life of the listing. The buyer’s coverage begins at the date of closing and is typically in effect for one year. Buyers can extend the plan for additional years at their own expense.
It is important to note that even if a seller provides a home warranty, they are still required to disclose any known defects.