Home warranties are nothing more than guarantees, promises, and protections provided by one party to another. In real estate contracts, there are usually warranties regarding the condition of the appliances and certain fixtures. New homes often have extensive home warranties covering not only fixtures and appliances, but the overall structure of the house as well.
Types of Home Warranties:
There can be “express” (written) warranties, ”implied” warranties (guarantees that the parties intended even though they may have stated them specifically in the contracts), and “imposed” warranties (guarantees created, for example, by state law).
Home buyers are becoming more and more savvy. When it comes to home warranties, most are asking the seller to provide one. A home warranty puts buyers more at ease, so they can focus on the aesthetics of a house instead of the technical or structural integrity of it.
An extended warranty for appliances will cover manufacturing defects, but what about if something major breaks – and it isn’t covered by the manufacturer’s warranty? That’s where home warranties kick in and take up the slack.
A home warranty will also cover things insurance won’t even begin to think about covering, like plumbing, electrical, and HVAC systems.
Ask T. J. Lamb about Kansas City home warranties and how they can protect you from surprise expenses after you just bought your new home.
This Home Buying Tip was excerpted from:
The Common Sense Guide to Successful Real Estate Negotiation by Peter G. Miller and Douglas M. Bregman, HarperCollins Publishers, Revised Edition 1994
ISBN # 0062732641
