Across the country, the red-hot home sale market has resulted in extraordinary bidding wars, with homes often selling for more than they were listed. With low interest rates and many people still working from home, the demand for houses is at an all-time high.
It’s a seller’s market, so new homebuyers should take extra caution to protect themselves when they make a successful offer for a new home. One of the most important things a prospective buyer can do is to make sure the big-ticket appliances work, to figure out how long they can be expected to last – and to purchase a home service contract to protect their investment.
Home service contracts can save hundreds or even thousands of dollars down the road. Homebuyers can obtain a new service contract when they buy or at a later point, and most home service contracts can be transferred if the previous owner already had one – so the new owners can enjoy the same protections from costly repairs to significant systems and appliances.
Depending on the contract, a home service contract can cover air conditioning, electrical, and plumbing, as well as major appliances like dishwashers and refrigerators – often in renewable one-year terms. These agreements can eliminate the hassle of finding a repair contractor, as your provider can recommend qualified contractors to meet your needs.
So while the housing market currently favors the seller, prospective homebuyers can make smart financial decisions now by seeing whether there is a current service contract that can be transferred to them during the sale of the house. And if not, smart homebuyers can purchase one after they move in.