Some would-be buyers may not know this, but when they are looking through existing homes, someone else has already lived in that home at some point and for some extended period of time. During that time, they have used - and probably abused - the home to some extent and worn out many parts of the home that were once brand new. A water heater, for instance, could be on its last legs and ready to flood the basement or it could have many years left to go. Most times, you cannot really tell the difference. Would-be buyers are therefore stuck with a problem - if they are going to buy someone else's home, how long do they have before something gives out or breaks down and ruins their new purchase? If this was all left to guesswork, many buyers would be up the proverbrial creek. Good news though! There is a solution.

Home warranties are a unique solution to this age old problem. Like most warranties, they allow the buyer to pay a small amount anytime something goes wrong for an otherwise much more expensive repair. Take for instance the water heater example mentioned above. For most home warranties, if that water heater were to give out during the home warranty coverage period, the buyer would need only pay the service fee (typically $60-$100 depending on the warranty company) to replace a water heater, which typically costs at least $2000. Now of course home warranty companies are not in the business of charity. They are trying to earn an income as well. They know that on the average most home warranty policies they issue will not be needed and the buyer will never contact them. However, as a home buyer, a home warranty provides a peace of mind on what is likely their most expensive purchase they will ever make in their lives. This leads to one more piece of good news! Quite frequently, the seller of the home they are buying is going to provide that first year of warranty coverage themselves.

As part of the Utah Real Estate Purchase Contract as currently formed, a home warranty option is provided when filling out the form. This permits the buyer to request the seller of the home to pay for the home warranty selected by the buyer, up to a certain dollar amount. One note here is that just because the buyer requests the seller pay for the home warranty does not necessarily mean the seller will accept. If the market is particularly seller friendly, chances are that it will be rejected or amended by the seller. However, that is where Realty Team Peterson comes into play. We will provide insight and negotiation strategy for this part as well as all of the other myriad parts of the Real Estate Purchase Contract to ensure the buyer is getting the best deal they can. Contact us today with any questions.