Home warranties cover repair and replacement costs when appliances and other systems in your home quit working properly. A home warranty can be purchased by either a home buyer or seller, and they are often paid for at closing when they are part of a sales contract..

There are two types of home warranties:

ReSale Home Warranty

Resale home warranty provides a competitive advantage and reduces liability for the seller while protecting the buyer's biggest investment.

Sellers and Buyers benefit with the existence of pre-owned home warranty. These benefits are: homes with a warranty sell faster, they can also sell at a higher value; they are more attractive to buyers as the buyer can rest easier knowing that unexpected repair costs are shared by the seller.

New Home Warranty

If you are constructing a new home it is likely the builder is required to provide a one year or mor warranty for problems you might encounter after the closing.

One out of every 200 new homes will experience a structural failure requiring repair at an averge cost of approximately $30,000.00. Most buyers and sellers rate home warranties as one of the most important considerations when buying or selling a home behind location, location, location, design and financing options.

The benefits provides risk reduction for the home buyer and increases the resale value of the home, it can also save the buyer money after closing.