Wisdom of Homeowner Warranties
THE WISDOM OF
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? We think so.As soon as buyers leave the closing, they often start imagining that pipes will burst, the air conditioning system will break down, and the plumbing will back up. 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 closing 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.