Judd was so excited when he found his dream home. It was an old house — over 100 years old! He had some concerns about it, but couldn’t bear to miss out on such an opportunity. Judd’s real estate agent suggested a home warranty. The cost was approximately $350. Judd wanted more information.
In today’s real estate market, it is not uncommon for either a buyer or a seller to purchase a home warranty. Such warranties usually cover appliances and the systems within the house, including heating/air conditioning, electrical, and plumbing. Typically, the cost ranges from $350 to $500 for an average home.
What Does a Home Warranty Cover?
The home warranty itself describes the scope of its coverage. Home warranties vary widely. In considering whether to purchase a home warranty, a prudent measure is to compare several different home warranties to determine which one offers the most coverage for the lowest price.
Duration of the Warranty
Usually, a home warranty remains in effect for one year from the date of the closing. Here again, the length of the warranty period is dictated by the home warranty itself.
For further information on home warranties, as well as information of general interest to home buyers and sellers, contact:
U.S. Department of Housing and Urban Development (HUD)
451 7th Street, SW
Washington, DC 20410
Copyright 2011 LexisNexis, a division of Reed Elsevier Inc.