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I want to give you an explanation of what a home warranty is?  Many Metro Detroit home sellers get confused about home warranties.  Some sellers think that they are responsible for the costs of the home repairs if they provide a home warranty to a buyer.  That is not true.

Home warranties are sold by many different companies across the country.  Costs for a home warranty vary from company to company. 

Simply put a home warranty is a one or more year service agreement that covers the repair or replacement of many major home system components and appliances that typically breakdown over time due to normal wear and tear.  Or another way to put it.....a seller buys a home warranty that is basically a insurance policy for the buyer in case something breaks in the house.  The home warranty company covers the repairs minus a deductible.  You the seller are only responsible for the cost of the home warranty policy.  Once you pay for that you are good.

Different home warranty companies have different deductibles and what they cover.  As a seller you do not care what is covered or what the deductible is.  You have no responsibility to shop for the best company or the best policy.  A buyer asks for a home warranty in the purchase agreement and the seller provides one. 

So once the seller pays for the home warranty at the closing they have no more liability or costs.  It is all between the buyer and the home warranty company.  No responsibility for the repairs.  The customary home warranty length a seller pays for is one year.  

Here are some of the common items that could be covered in a plan.

• Air Conditioning,
including ductwork
• Clothes Dryers
• Clothes Washers
• Dishwashers
• Electrical
• Heating, including ductwork
• Plumbing
• Ranges/Ovens/Cooktops
• Refrigerators
• Water Heaters
• Central Vacuums
• Doorbells
• Built-in Food Centers
• Garbage Disposals
• Garage Door Openers
• Free-standing Ice Makers
• Instant Hot/Cold
Water Dispensers
• Built-in Microwave Ovens
• Smoke Detectors
• Trash Compactors
• Ceiling Fans