A product I am seeing – and am sometimes utilizing myself – in real estate transactions with increasing frequency, is the usage of a Home Warranty.

The 4 types of Home Warranties we offer at Edina Realty are: 1) HSA Home Warranty – Price is $415 2) Edina Realty Home Services Plus – price is $675+ 3) Edina Realty Home Services One price between $415-$565 and 4) Exceptional Home Warranty Plan (for Home Warranty Coverage of Distinctive – or upper bracket – homes).

First, what is a home warranty, and might you need one? – To answer this, we need to understand what a home warranty is, and what the advantages are. Depending on the type of warranty purchased, a Home Warranty can provide coverage against errors and omissions, appliance and mechanical breakdowns, sometimes even foundation issues, roofing problems, electrical issues etc.

2 scenarios in which it can be advantageous for a seller or buyer to utilize a Home Warranty:
1) A buyer has agreed with the seller on the price of a home, but the forced-air furnace is old, and the buyer is concerned it will break down right after closing, and thus the buyer will incur an additional $2,200-$3,000 out-of-pocket cost to replace the forced-air furnace. The buyer asks for the furnace to be replaced, but the seller is not willing to pay for a furnace replacement either. The solution might be a Home Warranty, which is designed to cover breakdown of the furnace system. The HSA Home Warranty can be purchased for a 1-year period, at a cost of $415. Sometimes, not a bad solution.

2) A Home is on the market, and is accruing a lengthy period of time on the market. The seller has come down to their bottom-line number, and is not comfortable with, or not able to do another price reduction. Perhaps this is the time for the seller to purchase a Home Warranty, and have the listing agent advertise this fact. Sometimes, this can be enough of  an incentive (additional piece of mind) to get a buyer to put an offer together.

Perhaps a Home Warranty can be the right solution for you.