The Washington Post says homeowners typically spend between 1 and 4 percent of their home’s value each year on repairs and maintenance. Do you own a home that’s 7, 10 years or even older? Chances are you have aging heating and cooling systems? Nowadays, appliances, water heaters, hvac systems, and other home systems are not built to last more than 10-15 years. Faucets, dishwashers, washers and dryers all break down, leak and malfunction. Premium appliance brands cost thousands of dollars to repair and over ten thousand dollars to replace.
In 2018 my home water heater started leaking and a few days later it stopped working altogether. A few months later, the Sub-Zero fridge needed a major repair. If I had to pay for the replacement and repair, I would have spent at least $4000 out of pocket. I own a home warranty insurance policy with Super. The way it works when something breaks down in your home goes like this: You call the warranty company, explain the problem, then they schedule a professional service provider to come out for the repair or replacement. You pay a service call co-pay deductible of anywhere between $50-$75. The service provider determines the problem, then they either fix the item on site, or report back to the warranty company that the item can’t be fixed. At that point you receive a check for the cost of a similar product and you buy what you want.
So, if you are considering selling your home this spring and an older and have that old AC condenser that you don’t want to replace, buy a homeowner’s warranty, you can cover your own home and then transfer it to the new buyer when it’s sold.
Offering a home warranty is smart selling feature your realtor can tout while showing and advertising your property.
Here are some additional statistics on home warranties.
- The average life expectancy of nine critical appliances/home systems is 13 years, and the likelihood of failure of one of these systems in a given year is 68%. – Home Repair and Remodel, Marshall & Swift L.P.
- Homes on the market with a home warranty included sell on average 50% faster than homes without. – National Home Warranty Association
- Homes with home warranties return a sales price that averages 3% higher. – Business Week Magazine
- 8 out of 10 buyers prefer to buy a home with a home warranty. – Gallup Poll
- A home system or appliance repair can range from $65 to $2,000 and replacement averages $1,085. – Home Repair and Remodel, Marshall & Swift L.P.
Here are two home warranty companies and key contacts that both get high ratings. If you are thinking about getting coverage, you should consider purchasing one of these home warranty plans. Annual home warranty policies range as low at $390 for condos, $420+ and up for single family homes and $864 for single family homes with high-end appliances. Some of these warranty companies offer concierge services for carpet cleaning rooms, re-key service, as well as HVAC tune-up service all for the cost of a $75 co-pay.
Hello Super Warranty
Choice Home Warranty
Liz Balter McNamara
Harry Maisel is Illinois licensed real estate broker with At Properties and is consistently in the top 1% of Chicago real estate brokers. He has assisted hundreds of sellers and buyers in more than $200 million of transactions over the last 18 years. Connect with Harry at 773-502-7622 or firstname.lastname@example.org.