Our Real Estate Blog
You may have heard about home warranties, but are unsure of what they are. A home warranty is an excellent addition to your home insurance and has a particular function. When you buy a home, the last thing you want to worry about is things breaking or malfunctioning in the house after you buy it. Buyers fear the expenses they may incur if items in the home start to break down shortly after the property becomes theirs. As a first-time homebuyer, a home warranty can be incredibly helpful since you may need a crash course on home maintenance.
Depending on what’s the norm for homebuyers locally, either the buyer or the seller will pay for the home warranty. Some sellers pay for warranties up front as an extra assurance to the buyer of the property they’re about to purchase. Sellers also use this as an excellent tactic to “wash their hands” of the property. The buyer won’t need to contact the seller if something goes wrong with the property. A home warranty is a fairly inexpensive way to show buyers that appliances and the home itself have been well taken care of. Occasionally, real estate agents will give buyers a home warranty as a gift for their business. Usually, this is done for higher-end homes.
Home warranties aren’t very expensive. They usually range in price around a few hundred dollars in cost. The cost is based on a yearly rate and can be renewed each year at a slightly higher premium.
How Do The Warranties Work?
The warranty provider works with specific companies for different purposes. When the homeowner calls the warranty provider to let them know there’s a problem, the service provider will call the homeowner to make arrangements to fix the problem. If an appliance cannot be repaired, the warranty company may replace the item. There are usually small service fees associated with these repairs and replacements.
Is Anything Not Covered?
A home warranty will not cover numerous items around the house. These items include:
Outdoor fixtures and plumbing
Indoor plumbing fixtures
Some appliances may not be covered
Home warranty plans can vary based on your location and the type of policy. Make sure you review what’s covered before you finalize any home warranty. It’s an individual choice that homeowners make to have a peace of mind when moving into a new place.
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If you’re in the market to buy a home, one of your worst fears may be that of getting into a bidding war. What if you knew it was possible to actually score a home without spending a penny more than your budget? Below, you’ll find some tips that you should heed before you even put an offer in on a home.
Know Your Budget
The first step is to know your budget. If you can spend a bit more than the asking price on a home in a seller’s market, you may want to do just that. Buying a home is an emotional roller coaster and it’s easy to get sucked in. You need to think of all things practical before you even put a number on paper for an offer on a home. Work with your lender so that you know what you can spend. You can even consult your lender before you put an offer in if you know the circumstances of the home that you’re working with. The earlier you submit your offer the better.
Make The Offer Personal
An offer should have some personality and drive attached to it. First, your agent needs to speak with the listing agent. It’s surprising just how many offers are placed where the agents never even speak. As a bonus, you can write a letter to the seller. Let them know how much you love the property, the neighborhood, or their wonderful herb garden that you plan on maintaining. Add some personal flair to your offer to give yourself a leg up as a buyer.
Try To Close Sooner
There’s nothing more attractive to a motivated seller than a shorter time frame for closing. If the seller knows that you can close a deal in a shorter period of time, you may be able to win the deal with your sweet incentive. You can close on a deal faster by doing the inspection quickly. If you’re pre-approved for a mortgage that also helps speed the process along. You could even go a step further and get a conditional approval from the lender.
Give The Sellers What They Want
If the sellers happen to need more time in their home, give them space (unless of course you’re in a hurry to move.) By cooperating with the sellers and not being a high maintenance buyer you can certainly give yourself an advantage in the home buying process. If you really want to impress a seller, submit an “as is” offer. A seller won’t turn down something that’s easier for them.