Salt Lake City Real Estate Tips, Market Updates and

Local Happenings

By Real Estate Expert KathyOHomes

Home Warranties

We know you are excited about your new home and hope it is perfect in every way.  However it is important to remember that it is a complex, multi system machine and it would not be unusual to have unexpected problems arise - the  bath tub may plug up or the furnace may quite working.  Fortunately there is a way to ease your mind making these situations a nuisance rather than a calamity - get a home warranty.

The term "home warranty" applies to two forms of protection:  insurance plans for new homes and service agreements for existing homes.  Each has value and each have limitations. 

When you buy an existing home, chances are no warranty will be in place.  So a savvy buyer considers a warranty when making an offer.  The price of the warranty depends on the extent of the ceveragae3m but basic cost is about $350 for a one year plan.

Any home is eligible for a warranty, but you cannot buy a property with serious problems, wave a magic wand and have them fixed.  Limitations and exclusions are paced within the warranty to keep the cost of the policy reasonable.  Ask what is covered and what is excluded (maybe a swimming pool or hot tub) and whether you can buy protection for these optional features. 

Existing home warranties do not insure against structural defects such as rotted raters or cracked concrete but they do cover items that have been installed in the house, such as electrical systems, water heaters, ranges, plumbing, and central heating and cooling.  In addition to a premium, existing home warranties have a deductible feature, often $45 - $60 per call.  A typical warranty on existing home results in an average of nearly two buyer claims in the first year with about 30% of all warranties renewed.

There are a number of reputable warranty companies available.  On request, I will help you find the best policy that best covers your home.

Just remember that a warranty is no substitute for a home inspection.  A home inspection is an important first step to know what you are buying from the start.

There is a lot of free information available to you about buying, selling or investing in Salt Lake City Utah real estate. For complete information about the Salt Lake City Utah real estate market including current homes for sale, property values and more please visit the most complete website online dedicated to everything Salt Lake City Utah real estate. So please feel free to contact me with any of your mortgage questions and I will me more than glad to answer your questions. Call me on my cell at 801-518-4599 or email me at kathyo@kathyohomes.com.

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