The rise of home warranties
As anyone who has bought a home will testify, the days of simply paying the asking price are long gone. We’re not talking about the months of haggling over this final price either; we’re referring to the all of the little extras on top. Solicitor fees, removal fees, taxes – they all add up. One of the recent fees has also come in the form of home warranties.
One only has to conduct a search for home warranty reviews to see the scale at which this industry is growing. For those unaware, this isn’t the same as typical homeowners insurance. Instead, it’s a contract that will provide you with repairs and replacement on the major parts of a home, such as plumbing, electrical and air conditioning parts. Suffice to say, depending on the package you get, the cover is going to vary.
Following on from the above, let’s take a look at some of the reasons why they have soared in popularity.
The cost and convenience buffer
There’s no doubt that the biggest reason these warranties are becoming so popular is because of the cost and convenience security. There have been a lot of complaints about new house building companies over recent years, with buyers having umpteen problems that have impacted the first few years of their home. In short, a home warranty policy can help to safeguard you against having to pay out for repairs, or even find a contractor in the first place.
For a long time homeowners have had to keep emergency funds, which do exactly as the name suggests. In other words, if their boiler broke or another crucial component faltered, they could dip into this nest of savings and cover it. The warranty means that this doesn’t have to occur.
Reassuring potential buyers
Warranties are quite often marketed as being very useful and reassuring for the people that live in the home. However, if you are in the process of buying a house, it goes without saying that having a warranty in the background is a big safety net.
There is always an element of doubt when you buy a property, new or old. In the case of the latter, the risks are slightly higher, but a warranty can alleviate them somewhat. Sellers don’t tend to be overly inclined to reveal all about the potential problems in their home and as such, having that elusive warranty documentation can just make you sleep a little easier before you part with your cash.
The boot is also on the other foot
At the same time, there is a bit of reassurance for the seller as well. There have been cases of sellers being financially pursued for problems with a property, months (and sometimes years) after the sale has been finalised.
Through the emergence of warranties, this no longer has to be the case. You don’t have to worry about every little component; as long as a warranty is on the property both you and the buyer should be protected regardless.