A St. Augustine home warranty on a resale home is really just a service contract provided by a third party that covers the normal wear-and-tear of appliances and systems, such as dishwashers and heating and cooling systems. In the case of a new home purchased from a builder, the builder’s home warranty is typically much more comprehensive. Below we’ll explain in more detail what a warranty is and what it covers for both resale and newly constructed homes, and we’ll also further explain the benefits of a warranty for both buyers and sellers alike. Warranties on Resale Homes After closing and claiming the keys, having a home warranty in place allows buyers to move in with confidence, knowing that their appliances and the other major mechanical tickings of the home are covered. A basic service contract will pay for the repair or replacement of the dishwasher, oven, range, garage door opener, water heater, disposal, wiring, plumbing and HVAC systems. There are numerous licensed providers of St. Augustine home warranties, and we encourage you to shop around or begin your research here.
Regarding who pays for the warranty – buyer or seller – that’s negotiable. However, almost without fail, sellers tend to set a maximum price point of what they’ll pay towards the warranty, and buyers are then free to shop for the one that best fits their coverage needs. The actual warranty excerpt from the Florida Realtors contract is below, and the fill-in-the-blank point is where the buyer and seller sit down to agree on a price.
“HOME WARRANTY: At Closing, Buyer Seller N/A shall pay for a home warranty plan issued by ___________________________________________ at a cost not to exceed $_________________. A home warranty plan provides for repair or replacement of many of a home’s mechanical systems and major built-in appliances in the event of breakdown due to normal wear and tear during the agreement’s warranty period.”
The prices of warranties are contingent on the size of the home, whether it has a pool and whether you add optional items to cover, but costs typically run from $400 to $600. Coverage for optional items that add to the price include refrigerators, well pumps, septic tanks, swimming pool pumps, spas and free-standing appliances such as freezers, washing machines and dryers. Because your home warranty is renewed annually, you can always add items for coverage down the road.
Warranties on New Construction Homes When it comes to newly constructed homes, builders typically provide their own warranties. New home contracts generally include one-year coverage for the builder’s workmanship and two years for repairs and replacement of failing components such as such as windows, heating, ventilation, doors and trim, air conditioning, electrical systems and plumbing. More often than not, the builder will also offer 10-year coverage for “major structural defects”, for example, if a main beam in your living room is threatening to collapse seven years down the road. Some buyers also buy additional coverage from a third party after they review the basic warranty and discover that some home components are not covered by the builder’s warranty.
Home Warranties Benefit Both Buyers and Sellers
For buyers, the benefits of a warranty are realized when an unexpected break down happens in the home. If your AC putters to a stop or your dishwasher dies, a quick call to your warranty provider will have the item repaired or a new one installed. Instead of out-of-pocket, costly replacements – which you probably won’t appreciate after just buying a home – you’ll only pay a small service fee as stipulated in your warranty agreement.
For sellers, a warranty protects you in the event of something breaking down in the home post close. If the warranty is in place, sellers refer directly to their provider to handle – and most importantly, to pay for – the issue. Some warranty companies also give sellers the option to purchase a home warranty when they list their home. Having this kind of warranty in place protects sellers when potential problems with a covered item are discovered during the home inspection. Your Realtor can help you decide which warranty is right for you during the sale of your home.
Offering a home warranty to a potential buyer of your St. Augustine home will give you a competitive edge and give buyers comfort knowing that if something were to go wrong, they would have a level of protection. When it comes to giving you peace of mind concerning your new purchase, SuzySells encourages you to find the right warranty coverage. We’d like to work with you to make sure you’re ready for the unexpected and that you’re ultimately happy in your new home.
Contact us for more information about St. Augustine Home Warranty Companies.
Information on Old Republic Home Warranty