Tip 30-2014: Home Warranties - For the Buyer & Seller

When listing a house for sale, one item that proves particularly helpful is a Home Warranty. Warranties vary with price and coverage, but a typical Home Warranty costs around $400-500 and covers electrical, mechanical, and plumbing systems in a home as well as the appliances and the HVAC system. Optional coverage can be purchased for additional costs in order to cover items like pools or hot tubs. Minimal deductibles may exist.

A Warranty on a listing is good from the date of the listing and helps protect the Seller if something happens during the course of the listing and especially from the contract until closing. For example, if the hot water heater breaks, the Warranty will help to cover the expense of replacing the appliance. Once the property is sold, a Buyer then obtains the balance of the Warranty (usually lasts two years from the initial purchase).

Additionally, the Buyer can opt for a Home Buyers Warranty with coverage beginning on the closing date and continuing for one to two years from that date. The Warranty can be renewed annually and covers major appliances and systems. Again, an enhanced version can be purchased for an increased cost.

Home Warranties are attractive for both Buyers and Sellers and can provide a much needed sense of comfort during a complicated time!

Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions.

 

William D. Tucker, III

Tucker Griffin Barnes P.C.

Charlottesville & Lake Monticello

434-973-7474

www.TGBLaw.com