This week’s edition marks one full year of my tenure as real estate columnist for the Alpine Mountaineer newspaper. Before we celebrate, let’s dive into this week’s real estate knowledge!
A home warranty plan can be a valuable asset for both buyers and sellers, offering peace of mind and financial protection. For home buyers, a home warranty helps cover the cost of repairs or replacements for major systems and appliances, such as HVAC units, plumbing and electrical systems. This protection is particularly important for first-time buyers or those purchasing older homes. Unexpected repairs can quickly lead to financial strain but, with a home warranty, buyers are safeguarded from those out-of-pocket expenses.
“A home warranty is a safety net for buyers. It can help avoid out-of-pocket expenses during the first year of homeownership,” says Leslie Rouda Smith, 2022 president of the National Association of Realtors.
For sellers, offering a home warranty can make a property more appealing, especially in a competitive market. It provides buyers with added confidence that they won’t be faced with unexpected repair costs after moving in. A home warranty can also prevent post-sale disputes if something breaks down shortly after the sale is finalized. Sellers who include a home warranty with their listing often see faster sales and fewer negotiations, as buyers feel more secure about the home’s condition. Scott A. McCredie, a fellow real estate columnist, affirms, “A home warranty can alleviate concerns that buyers might have about the risk of future repairs.”
It’s important to note that a home warranty does not cover existing conditions. It only covers items that break after the close of escrow, so buyers and sellers should not expect warranties to address issues discovered during the escrow process. Additionally, home warranties do not cover acts of God or damages typically covered by home insurance, such as roof repairs following storm damage.
Brands like Old Republic and American Home Shield, both popular in Southern California, offer customizable plans that cater to a wide range of needs. Standard coverage can be expanded to include spas, pools, solar hot water systems, outdoor kitchens and even septic systems, providing flexibility for buyers and sellers alike. The right warranty plan can offer significant peace of mind, knowing that many potential repair costs will be covered.
Including a home warranty in a real estate transaction can help reduce stress for everyone involved. With potential repair costs managed, both buyers and sellers can enjoy a smoother, less stressful process.
To celebrate my one-year anniversary as this newspaper’s real estate columnist, I am offering every client who goes under contract with me between today and Oct. 31, 2024, a free basic home warranty at the close of escrow. This is my way of saying “thank you” to our community and helping ease those fears of unexpected repairs when buying or selling a home.
If you’d like to learn more about the current local market conditions, reach out to Theresa Grant, Real Estate Broker (DRE #01202881), at Theresa@HomesInLakeArrowhead.com. You can also follow on social – Instagram: @theresagrantrealtor|YouTube: @theresagrantrealtor. Theresa is a Broker Associate with Coldwell Banker Sky Ridge Realty.
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