Home Service Contracts, or Warranties, are service contracts that cover the repair or replacement of many of the most frequently occurring breakdowns of home systems and appliances. These contracts can help lower a buyer’s risk associated with fixing and/or replacing items that break down. A home warranty can help make covered repairs or replacements easier and less costly.
As an example, a major breakdown of a home’s HVAC system can cost thousands of dollars to repair or replace. This risk alone usually makes for good enough reason to have a home warranty.
There are many terms and conditions that go along with all home service contracts. Buyers should compare products and make informed decisions when considering the purchase of a home warranty.
In many cases, it has become almost customary for a buyer to request a seller pay for the first year of a home warranty when making an offer on a property. This is just one term of a purchase contract that can be negotiated. What’s more, many sellers are now offering warranties when they market their homes.
Home service contracts can be renewed annually and do not need to be purchased at the time of a home’s sale, although this is usually the case.
Note: New Orleans Relocation, LLC and its agents never accept commissions or fees from any service providers, including Home Warranty Companies. We do believe that Home Warranty Plans may be beneficial to both Buyers and Sellers, depending on the particular property being sold.