Many homeowner’s purchase their homes counting on things basically holding together for a certain period of time. Home inspectors are called to make sure everything is copacetic, but an inspection does not satisfy all worries.

While an inspector’s evaluation determines that the home was kept up properly and is not in need of immediate repairs, new homeowners often suffer from Murphy’s Law. This law states that whatever can go wrong will go wrong given the chance, and even though it might be totally superstitious, it often seems to be true.

Within the first few months of new home ownership, homeowners often experience great losses. Water heaters break, and dryers fail. Heat pumps stop working, or plumbing starts leaking. In most cases, it is not the previous homeowner’s fault. Life simply happens, and stuff breaks. However, new homeowners like protection.

Sellers, on the other hand, want to show potential buyers that they can have faith in the condition of the home. One good way to do that is to offer a home warranty.

Home Warranties: The Good and Bad

While offering a home warranty sounds very transparent, home warranties aren’t always what they’re cracked up to be. There are many loopholes that prevent warranties from paying out should something go wrong. However, they are a good attempt at making sure that any unexpected financial casualties could be made right.

Home warranties are not insurance policies, and they only cover the specific items listed in the warranty, so they should be chosen carefully. Typically, they cover home systems such as air conditioning or major appliances. Home insurance is still a necessity both for lending and for peace of mind.

First-timer Ease

One of the best times to for a seller to purchase a home warranty as a selling feature is for first-time home buyers because they often lack the financial security to cover the failure of large home systems and appliances.

If you are selling a home that fits the first-time home buyer general footprint, then home warranties can help a home sell quickly. Seasoned home buyers don’t always need that surety because they are financially equipped to handle what eventually seems like minimal losses.

In other words, if you are selling a multi-million dollar home, you can expect that potential buyers won’t need the minimal protection of a home warranty. However, if you are selling a home in the price range of people who may just be starting their financial histories, home warranties can bring the relief of coverage for basic defects in home systems and appliances that can financially stress those who are already stressed at the prospect of a mortgage payment.