George Clements ~ Greenville, SC Real Estate
Paragraph 18 of the Contract For Sale deals with home warranties and looks something like this:
18. HOME WARRANTY : It is understood a third-party 1-year home warranty ___ will, ___ will not be provided through_______________________________ Warranty Company at a cost not to exceed $________ at closing. If pplicable, the cost will be paid at closing by ____ Purchaser ____ Seller. No additional home warranty will be provided if one is currently being offered by the Seller.
This paragraph shows if a home warranty will be provided for the home and if the purchaser or the seller is going to pay for it. Normally, a home warranty costs between $400 and $600 just depending on what is covered in the warranty. There is normally a deductible that comes with covered items but it can be worth it if it saves hundreds of dollars on some repairs.
A seller will not care if the purchaser gets a home warranty or not as long as they get their same bottom line for selling a house. In other words, $100,000 and no home warranty is the same as $100,500 and a $500 home warranty. The sellers net price is the key. Sometimes, sellers will offer a home warranty as a way to entice purchasers but it does not really have much affect in getting a house sold. The key factors are still pricing and staging.