Start protecting your home purchase in the negotiation stage!

The landscape of home ownership has changed so dramatically throughout recent years, becoming more complex and sometimes nerve-wracking for buyers - first-time and returning homeowners. So many factors go into the home-buying process: location, supply and demand dynamics, home pricing and affordability, interest rates, technology and innovation, risks and vulnerabilities, to name a few. With all of these common details and decisions at the forefront of the buyer’s mind, a home warranty may not have even occurred. But, did you know that you can start protecting and securing your future investment at the negotiation process? It’s true! You can include a home warranty in real estate transactions to add assurance for both buyers and sellers.

Before you start the home buying process, research different home warranty companies to understand what they offer in terms of coverage, pricing, and reputation. Look for companies with positive reviews, comprehensive coverage options, and reasonable service fees.

When making an offer on a house, consider including a contingency clause in the purchase agreement that specifies the seller will provide a home warranty as part of the sale. This contingency can help protect you as the buyer in case of any unforeseen issues with the home's systems or appliances after the purchase.

Once your offer is accepted, negotiate with the seller to include a home warranty as part of the closing agreement. Oftentimes sellers may be willing to cover the cost of the warranty as an incentive to attract buyers or as a goodwill gesture to facilitate the sale.

Work with your real estate agent or directly with the home warranty company to select the appropriate coverage plan for your needs. Consider factors such as the age of the home, the condition of its systems and appliances, and your budget when choosing coverage options.

Carefully review the terms and conditions of the home warranty contract to understand what is covered, any exclusions or limitations, and the process for filing a claim. Make sure you are clear on what is included in the warranty and what additional coverage options are available.

Ensure that the home warranty is included in the closing documents and that all parties involved, including the seller, buyer, and real estate agents, are aware of the agreement. Coordinate with the closing process to ensure a smooth transition and timely activation of the home warranty.

Once the sale is finalized and you take possession of the home, activate the home warranty as soon as possible. Follow the instructions provided by the warranty company to register your coverage and obtain information on how to request service if needed.

Incorporating a home warranty into the home buying process can provide valuable protection for both buyers and sellers, offering peace of mind and financial security in the event of unexpected repairs or issues with the home's systems and appliances. By following these steps, you can ensure a seamless integration of the home warranty into your home purchase.