Every first-time homebuyer is faced with a lot of questions when they decide to buy a home. From mortgage to home inspection and warranty, you need to make sure that you understand every aspect before you buy a home. Top selling real estate agents Raleigh NC will tell you how important it is to understand what a home warranty is!
What Is a Home Warranty?
A home warranty is an individual residential contract that protects a homebuyer’s investment. They are service contracts that guarantee to pay for the repair or replacement of appliances, plumbing, air conditioning, and heating if they stop working and if they are covered under the contract. As per the best real estate agent NC, a home warranty is a contract that covers the cost of maintaining household appliances or systems for a set period. Almost every real estate agent NC recommends investing in a warranty if you are purchasing older homes with no apparent information on the status of items covered.
Should You Buy a Home Warranty?
The best real estate agent in Raleigh suggests that you ask yourself these questions before you decide whether you need a home warranty or not!
Am I Already Covered?
The first question you must find an answer to is whether you already have protection. Top real estate agents Raleigh NC suggest looking into new-appliance warranty as they may be already covered or have an extended warranty. Some credit cards offer an additional warranty if the purchase is made using the card.
How Much Will the Warranty Cost?
There are three basic plans,
- a plan for a particular appliance
- a plan for all appliances
- a plan for appliances, plumbing, and electrical systems
The best real estate agent Raleigh says that the cost varies as per the plan that you buy as well as where the home you plan to buy is located.
Do I Know What It Covers?
Top real estate agent NC says that most buyers do not understand what their home warranty covers. You do not know how the previous owners have managed the components of the home. Make sure that you read the terms and conditions clearly as home warranty providers can argue against payment under certain circumstances.
Do I Understand About Repairs and Replacements?
When an item covered is too expensive to be repaired, the service provider may offer to replace it. Real estate agent Cary NC suggests that you understand what replacement means as most service providers offer the depreciated value of the damaged appliance and not the actual cost of replacement. Make sure you understand repairs and replacements before you invest in-home warranty.
What Are the Limitations of Payout?
As per the top real estate agent in Raleigh, the limitation on payout depends on the plan that is purchased, as well as on the service provider. Service providers have a wiggle room, making it easier for them to deny payouts which is why it is necessary to read the contract and understand the plan before you buy.
Top real estate agent Raleigh suggests that you answer all the five questions. New appliances are already covered, and a home warranty is usually bought by buyers who are interested in an old home. Yet, it is advised to understand the terms and conditions, conduct a home inspection before investing in the home as well as the warranty.