Princeton Town Topics – Let’s Talk Real Estate – July 7, 2010
THE WISDOM OF HOMEOWNER WARRANTIES
There are a number of companies that offer home warranty coverage on the major systems and appliances in a home for the first year that the buyer owns the property. Arrangements are made for this coverage during the escrow period and usually paid for at close of escrow. These warranties vary in types of coverage and cost, but they can provide extra peace of mind for concerned buyers. Are homeowner warranties a good idea?
Buyers often start worrying about the condition of the home as soon as they sign the settlement papers. People use a house and appliances differently, and sometimes a change in style is enough to result in malfunction. A buyer may come back after the settlement insisting that a toilet or breaker box is defective and asking that it be repaired at the seller’s expense. If you have purchased a warranty, the dispute is handled by the warranty company and is no longer between you and the buyer.
