Home Warranty Transferability – All You Need To Know

Have you ever sat on a rollercoaster ride? That is an adventure where the wind splashes on your face, and you feel the thrill. It is a good feeling because you know the ride will end after a few minutes.

Imagine if that rollercoaster keeps running for a few months or even a year. That joy will soon turn into frustration which is exactly what happens during a home-buying process.

Finding a home that checks most, if not all, of your boxes of preferences can be challenging but definitely worth it. Why? Because the experience and feeling of becoming a homeowner and living your desired lifestyle is incomparable. But along with the joy comes the responsibility of taking care of home components.

These home expenses can usually break your bank as you will need to bear the cost. In addition, you will also have to invest a lot of your time as you will need to find a proven technician. But what if we told you there was a better way to make your home repairs and maintain it as well?

Let’s dig in to unravel this mystery.

Key Takeaways

What Are Home Warranties?

Home warranty coverages are a god-sent for homeowners who want extra pair of hands looking after their property. This is a contract where a third-party home warranty company manages the repair, maintenance, and replacement of your home components.

Learn More: Find the Right Plumb. Repair & Leak Detection For Your Home

This will save you a lot of money as you will just have to bear the service fees, which are significantly lower than what you would have had to pay. On top of that, home warranty providers have a pool of qualified technicians to provide their services.

Yes, we understand the potential question on your mind. You would want to know, “If I am buying a home covered with a home warranty, won’t it end with the property transfer of ownership?” Well, that is where the transferability of a home warranty comes in.

What is that, and how does it impact the home real estate proceedings? That is what you are about to find. Let’s discuss.

What Is Home Warranty Transferability?

As the name suggests, home warranty transferability is the ability to ensure that new homeowners are able to continue the coverage. For home sellers, this can be an additional value to attract home buyers and sell their property quicker.

Is Home Warranty Transferability Possible?

You have just seen the definition of what home warranty transferability means. But the question now is, will it be possible for homeowners to transfer their home warranties when the new homeowner moves in? The answer is yes and no.

Learn More: Find the Right Notary For Your Home

Yes, that is possible. But it is not something offered by all home warranty coverage providers. So, before you think about the transferability, confirm that the home warranty is transferable.

Here are some of the ways that home warranty transferability works.

Real Estate Agent Buys The Home Warranty

Have you ever wondered why there are so many realtors around us? Why are they so willing to help homebuyers like yourself and sellers in striking a perfect deal? That is because a real estate agent wins if they facilitate a deal.

Usually, a real estate agent makes more than 5% of the total home purchase value as a commission. If a total home purchase value is $200,000, the real estate agent can make $10,000. So, they often happily pay the home warranty transferability fees and other charges.

If that happens, you might not have to pay for home warranties over a specific period and enjoy the benefits. All this for a chance to get that commission and make a significant profit for themselves.

Seller Gifts The Home Warranty

You, as the home buyer, might not be the only one in a hurry to buy a new home. The home sellers will also have a lot to think about as they prepare to relocate. If the home sellers are looking for a quick deal, they might add in the home warranty coverage along with the property.

This can help the home buyers stand out and attract more serious buyers.

Buyers Pay For The Home Warranty Transferability Themselves

Ideally, there are two options when it comes to transferring a home warranty: either have a real estate agent cover it or let your home seller do it. However, in a few situations, this may not be the case. If you're interested in a particular home with a transferable home warranty, you can bear the cost of the transfer yourself.

This means you need to buy the home warranty yourself.

Home warranty providers have different processes for transferring coverage. Make sure to be clear about this process before starting.

Factors To Look For During A Home Warranty Transfer

It is not just about “If you have the home warranty transfer option, you should take it.” You might get into hot waters if you blindly go for home warranties.

Here are some of the factors for a smooth transfer of home warranties.

Understand the Coverage Plans

You might find yourself in a situation where the home seller is a fan of cooking while you might have to do a lot of laundry. This might mean the existing home warranty covers the kitchen appliances, while you would want laundry appliance covers. This will not work for you.

Make sure that the home warranty coverage meets your preferences to ensure you make the right investment. You would not want to waste the home warranty premium.

Confirm the Transferability

The home seller might tell you that the home warranty is transferrable, but you might want to double-check with the home warranty provider. This can help you avoid complications as you go deeper into the transfer process.

Can You Afford it?

All providers of home warranties structure their plans differently. These include various expenses like the service and premium costs. Transferring home warranty plans without needing them might not be a financially productive decision.

The Bottom Line

Understanding home warranty transferability can make it easier to get coverage for the right home components at a lesser cost.

We talked about home transferability, along with discussing different ways of home warranty transfer. You also saw the factors involved during the home warranty transfer.

Now, the only thing left is to find a home warranty provider that meets your preferences. You can start looking for one in our home warranty listings. At HAR.com, we have home warranty agents and companies based in different parts of the United States.