Home Warranty Can Help If You Give Up a Home Inspection | Real estate

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For some buyers in the highly competitive housing market in 2021, abandoning a home inspection has become one way to encourage a seller to choose their home offer.

Responsibility for correcting any deficiencies in the home, its appliances or systems is shifted to buyers, not sellers, if the home inspection is canceled altogether or if buyers choose to conduct an “information only” inspection. According to the National Association of Realtors, roughly 25 percent of buyers abandoned mandatory home checks in May.

Some home sellers and real estate agents provide buyers with a home guarantee as part of a real estate transaction. Buyers can also purchase their own home warranty plan to offset some of the risks associated with avoiding a home inspection.

“Checkout unforeseen circumstances allow buyers to cancel a purchase or request repairs if a problem is identified during the checkout period,” wrote Raj Midha, senior vice president and general manager of American Home Shield, a home warranty company. “When this option is dropped, new owners are removing one of the layers of protection designed to keep their budget and stress levels high. A home warranty or service plan can provide budget protection by helping to cover repair or replacement costs in the event of essential home systems and appliances failing after you buy a home. ”

However, many clients with a home warranty plan find these policies frustrating. Home warranty companies ranked 10th on the list of industries receiving the most customer complaints filed with the Better Bureau Business in 2018. Consumer reportsThe main reason for these complaints is a misunderstanding of what the home warranty plan covers.

We asked Midha to tell us about how the home warranty rules work.

Question: How much does the home warranty cost?

Answer: On average, a home warranty costs between $ 500 and $ 700 per year with monthly payments ranging from $ 40 to $ 60. The price varies depending on the plan you choose and the location of your home. When you request a service, you usually pay a commission to call the sales service. At American Home Shield, we offer a choice of $ 75, $ 100, or $ 125 per call charges to help you manage your budget and cash expenses.

Question: What should homeowners look for when looking for a home warranty provider?

Answer: Homeowners should look for a well-established supplier committed to transparency in terms of coverage, service procedures, and pricing. It is also important to understand how the supplier fulfills its service requests. For example, American Home Shield uses a nationwide network of more than 17,000 licensed contractors who have passed the certification and background checks.

Question: What are the most common repairs homeowners should prepare for?

Answer: During the first year of home ownership, the most common service requests are for air conditioners, water leaks, water heaters, and refrigerators. American Home Shield has

20 percent of them submit a service request within the first 30 days after home closure.

Question: How can consumers evaluate the best warranty plans for their needs?

Answer: Every home and every owner is unique, so it’s important to choose a plan that provides maximum coverage for your most commonly used appliances and systems, based on your individual budget.

Question: Are there any amazing things that can be included in home service guarantees that homeowners might not be aware of?

Answer: Maintenance options such as HVAC customization and key replacement services are available in addition to additional protection for personal home electronics. You can cover garage openers, ceiling fans, and hot tubs in addition to appliances and systems. Homeowners may also be surprised to find that we cover older items, regardless of their age, and do not require maintenance records or home inspections.

Question: Why should homeowners consider having both homeowner insurance and home warranties?

Answer: An easy way to differentiate warranty from insurance is that homeowner’s insurance protects against things that can happen, such as fires, thefts, or natural disasters. Warranty plans protect against things that can happen, such as breaking your oven and air conditioner. Unlike warranties, insurance can cover theft, loss or damage, as well as general liability that could arise if someone on your property is injured.

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