Florida Real Estate: The Truth About Homeowner Warranties

Posted by Mary Ray on Thursday, December 3rd, 2009 at 9:18am.


Purchasing a home in Cape Coral? Looking for piece of mind with that purchase? Read on...

If you think of a home warranty as a builders policy that only applies to new construction; think again. Florida home warranties are often offered or requested as part of a Cape Coral home purchase and can be used as a form of security when selling a home.

A home warranty offered by a reputable company promises to pay for the repair or replacement of appliances, plumbing, air conditioning, and other things that can possibly go wrong with your new home. Compared to the cost, which averages between 300 and 500 dollars per year, a home warranty can be your best friend when your appliances begin to break down.

Florida is a bit different than other parts of the nation. If you are running on well water, there is the possibility of corrosion to your pipes, joints and elements that are exposed to your well water. Copper pipes are especially vulnerable over the years when exposed to Florida's elements. A home warranty can include all of your interior plumbing and can even insure that your drywall is restored to a paintable condition in the event of a pipe burst or extensive damage due to a leak.  For more information on the quality of your drinking water, check the United States Environmental Protection Agency website.

Most of the time your repairs won't be as dramatic or extensive as a burst pipe, but it's the little things like a faulty dishwasher or a dying heating element on a water heater that can add up to big bucks at unexpected times. With a home warranty in place, if anything goes wrong with your covered appliances, all it takes is one call to the main number to send a repair crew to your home; generally within 24 to 48 hours. The repair crew then decides whether to repair the appliance or to replace it, for a deductible rate which is usually between 50 and 75 dollars. That certainly beats the price of a brand new appliance and allows you to better budget your finances, without having to allow for the replacement cost of broken appliances.

Although your home insurance can be called upon to repair damage due to a hurricane or other catastrophes, a solid home warranty in place can offer almost immediate service in the event of an appliance repair or replacement.

Warranties can be purchased by either the buyer or the seller. If you are planning on selling your home in the near future, a home warranty, sometimes referred to as a repair service contract, can sometimes be the turning point of the deal.  Offering a warranty can set your home apart from the competition and cause your home to be taken more seriously than others near the same price point and location.  Buyers will feel more comfortable about buying your home without the worry of hidden problems. Providing a home warranty can even result in a higher purchase price. All in all, a home warranty is an excellent selling tool that helps make it easier for a buyer to agree to a price.

If you are purchasing a home in Cape Coral or Southwest Florida that does not come with a home warranty, you may want to request one from the seller. If this is not an option, you may consider purchasing one for yourself. Having a one year home warranty in place while settling into your new home can come in handy if something breaks down when you don't have a lot of extra cash on hand.

For additional information on home warranties, please contact our offices to speak with a real estate agent. We will be more than happy to assist you with your questions or concerns.

By David Sporleder | Sporleder-Ray Realty Group | david@davidsporleder.com| Google+


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